Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Investor Presentation (May 2005)
43 slides from Acs, Actividades De Construccion Y Servicios Sa's investor presentation, May 6, 2005
Slide 1: Main Impacts on 2004 Financial Statements of the Transition to IFRSs
MAIN IMPACTS ON 2004 FINANCIAL STATEMENTS OF THE TRANSITION TO IFRSs May 6, 2005 1
Slide 2: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 3: Introduction
Introduction The following financial information has been prepared in accordance with the new IFRSs and the existing interpretations for the period ending December 31, 2005. Therefore, the following must be considered : Ø This information has been prepared on the assumption that the current IFRSs wi
Slide 4: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 5: General Aspects
General Aspects European regulations oblige listed companies to report their 2005 consolidated financial statements in accordance First- with the new IFRSs. Since the regulations require that comparative information for 2004 be presented, it is time necessary to restate the 2004 accounts in accordan
Slide 6: General Aspects: Main Impacts in 2004
General Aspects: Main Impacts in 2004 Euro million SP GAAP IFRSs Impact Description Total net worth 2,103.9 2,108.6 + 4.7 The increase in net worth is due to the inclusion of the balance of minority interests (117.0 M €), which offsets the negative net adjustments (112.3 M €) arising from the transi
Slide 7: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 8: Main differences between Spanish GAAP and IFRSs (1)
Main differences between Spanish GAAP and IFRSs affecting the ACS Group (1) Project No capitalization of the pre-contract or project expenses, excepted those expenses incurred since the award date or final negotiation of the related contract. Research expenses No capitalization of research expenses,
Slide 9: Main differences between Spanish GAAP and IFRSs (2)
Main differences between Spanish GAAP and IFRSs affecting the ACS Group (2) Extraordinary There is no longer a caption for extraordinary results. results Under IFRSs revenues and expenses must be accounted for using the percentage-of-completion method. Therefore, the ACS Group considers that in view
Slide 10: Main differences between Spanish GAAP and IFRSs (3)
Main differences between Spanish GAAP and IFRSs affecting the ACS Group (3) § Financial expenses incurred once the concession is in operation may not be capitalized. Therefore, under IFRSs, financial expenses have to be recognized on an accrual basis. This is the only impact that has been recorded i
Slide 11: Main differences between Spanish GAAP and IFRSs (4)
Main differences between Spanish GAAP and IFRSs affecting the ACS Group (4) Leased Leased assets are recorded as tangible fixed assets based on their nature. The total assets debt net of the related financial costs is recorded as a liability. The financial costs are recorded on an accrual basis. Fin
Slide 12: Main differences between Spanish GAAP and IFRSs (5)
Main differences between Spanish GAAP and IFRSs affecting the ACS Group (5) In the real estate business (mainly through Inmobiliaria Urbis, S.A.) the main impacts are as follows: Real § Income may not be recognized even when the property development has estate activity been substantially completed.
Slide 13: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 14: Accounting options
Accounting options Under IFRSs there are certain accounting alternatives. In accordance with the accounting principle of prudence and in order to minimize the volatility of results and other impacts on the balance sheet, the ACS Group decided to choose the following options: § Classification at shor
Slide 15: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 16: Summary of impacts by business area
Summary of impacts by business area Description (Decrease) / Increase Millions of Euros Coments Net worth as of 12/31/04 per Spanish GAAP 2,103.9 Minority interests not included Construction - 1.0 Start-up expenses Industrial - 15.9 Start-up expenses and precontract expenses Services - 4.0 Start-up
Slide 17: Methods Sp GAAP IFRSs: Industrial
Industrial (Decrease) /Increase Methods Impact on S.E. Millions of Euros Sp GAAP IFRSs R&D expenses Straight-line amortization over five Only development expenses - 1.4 years capitalizable Preopening expenses Straight-line amortization over five Expensed currently - 2.2 years Precontract expenses Ca
Slide 18: Methods Sp GAAP IFRSs: Services
Services (Decrease) /Increase Methods Impact on S.E. Millions of Euros Sp GAAP IFRSs Incorporation and preopening Straight-line amortization over five Expensed currently - 5.9 expenses years Precontract expenses Capitalizable if the project is viable Capitalizable from the contract - 5.4 negotiation
Slide 19: Methods Sp GAAP IFRSs: Concessions
Concessions (Decrease) /Increase Methods Impact on S.E. Millions of Euros Sp GAAP IFRSs (*) Financial expenses Deferred and recognized in Expensed currently - 85.9 proportion to revenues Precontract expenses Capitalizable and amortizable over Capitalizable from the contract - 1.3 the term of the pro
Slide 20: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 21: Comparison of Spanish GAAP and 2004 IFRSs: Total Group
Comparison of Spanish GAAP and 2004 IFRSs: Total Group (Millions of Euros) Sp GAAP IFRSs Variation Turnover 10,960.7 10,817.9 -142.8 (1) Operating Cash-Flow (EBITDA) 977.3 984.1 +6.8 (2) Operating Profit (EBIT) 711.0 728.1 +17.1 (3) Ordinary Income 645.4 624.2 -21.1 (4) Attributable Net Income 460.4
Slide 22: Comparison of 2004 IFRSs: Construction
Comparison of Spanish GAAP and 2004 IFRSs: Construction (Millions of Euros) Sp GAAP IFRSs Variation Turnover 5,230.3 5,230.3 -0.0 Operating Cash-Flow (EBITDA) 389.4 398.1 +8.7 (1) Operating Profit (EBIT) 318.9 327.7 +8.8 (1) Ordinary Income 337.3 335.9 -1.3 Attributable Net Income 217.3 221.4 +4.1 O
Slide 23: Comparison of 2004 IFRSs: Industrial
Comparison of Spanish GAAP and 2004 IFRSs: Industrial (Millions of Euros) Sp GAAP IFRSs Variation Turnover 3,490.5 3,490.5 +0.0 Operating Cash-Flow (EBITDA) 295.9 293.8 -2.1 (1) Operating Profit (EBIT) 246.7 246.9 +0.2 (2) Ordinary Income 226.6 217.6 -9.0 (3) Attributable Net Income 149.0 151.5 +2.5
Slide 24: Comparison of 2004 IFRSs: Services
Comparison of Spanish GAAP and 2004 IFRSs: Services ((Millions of Euros) Sp GAAP IFRSs Variation Turnover 2,329.3 2,186.5 -142.8 (1) Operating Cash-Flow (EBITDA) 314.9 314.2 -0.7 (2) Operating Profit (EBIT) 171.5 178.5 +7.0 (3) Ordinary Income 118.3 138.9 +20.6 (4) Attributable Net Income 85.6 98.7
Slide 25: Comparison of 2004 IFRSs: Concessions
Comparison of Spanish GAAP and 2004 IFRSs: Concessions (Euro Millions) Sp GAAP IFRSs Variation Turnover 15.3 15.3 +0.0 Operating Cash-Flow (EBITDA) (1.8) (0.9) +0.9 Operating Profit (EBIT) (2.0) (1.0) +1.1 Ordinary Income 57.8 32.4 -25.4 (1) Attributable Net Income 64.4 39.6 -24.8 (1) The negative a
Slide 26: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 27: IFRS Balance Sheet – 12/31/04 - Assets
IFRS Balance Sheet – 12/31/04 - ASSETS Increase / (Decrease) Spanish Total IFRS (€ Millions) GAAP Variation Due from shareholders for uncalled capital 4.5 0.0 -4.5 (1) Start-up expenses 10.6 0.0 -10.6 (2) Intangible assets 276.2 97.2 -179.0 (3) Tangible fixed assets + long term assets in projects 2,
Slide 28: IFRS Balance Sheet – 12/31/04 – Equity and Liabilities
IFRS Balance Sheet – 12/31/04 – Equity and Liabilities Increase / (Decrease) Spanish Total IFRS (€ Millions) GAAP Variation Parent shareholders' equity (without minority interest) 2,103.9 1,991.6 -112.3 Capital + additional paid in 1,073.7 1,073.7 +0.0 Reserves 824.4 532.0 -292.4 (9) Translation dif
Slide 29: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 30: Conclusions
Conclusions The ACS Group’s recurring consolidated net income under IFRSs is estimated as 1 being approximately 28 M € higher than under Spanish GAAP. 2 The ACS Group’s dividend policy will not be affected by the application of IFRSs. 3 The effective tax payments will not be affected by the applicat
Slide 31: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 32: Comparison of Spanish GAAP with 2004 IFRSs: Total Group
Comparison of Spanish GAAP with 2004 IFRSs: Total Group SP (Millions of Euros) GAAP-04 IFRS - 04 Variation Turnover 10,960.7 10,817.9 -142.8 Operating Expenses 9,983.3 9,833.8 -149.6 Operating Cash-Flow (EBITDA) 977.3 984.1 +6.8 Amortization and Provisions 266.3 256.1 -10.3 Operating Profit (EBIT) 7
Slide 33: Comparison of Spanish GAAP with 2004 IFRSs: Construction
Comparison of Spanish GAAP with 2004 IFRSs: Construction SP (Euro Millions) GAAP-04 IFRS - 04 Variation Turnover 5,230.3 5,230.3 -0.0 Operating Expenses 4,841.0 4,832.3 -8.7 Operating Cash-Flow (EBITDA) 389.4 398.1 +8.7 Amortization and Provisions 70.5 70.4 -0.1 Operating Profit (EBIT) 318.9 327.7 +
Slide 34: Comparison of Spanish GAAP with 2004 IFRSs: Industrial
Comparison of Spanish GAAP with 2004 IFRSs: Industrial SP (Euro Millions) GAAP-04 IFRS - 04 Variation Turnover 3,490.5 3,490.5 +0.0 Operating Expenses 3,194.6 3,196.7 +2.1 Operating Cash-Flow (EBITDA) 295.9 293.8 -2.1 Amortization and Provisions 49.2 46.9 -2.3 Operating Profit (EBIT) 246.7 246.9 +0.
Slide 35: Comparison of Spanish GAAP with 2004 IFRSs: Services
Comparison of Spanish GAAP with 2004 IFRSs: Services SP (Euro Millions) GAAP-04 IFRS - 04 Variation Turnover 2,329.3 2,186.5 -142.8 Operating Expenses 2,014.4 1,872.4 -142.0 Operating Cash-Flow (EBITDA) 314.9 314.2 -0.7 Amortization and Provisions 143.4 135.7 -7.7 Operating Profit (EBIT) 171.5 178.5
Slide 36: Comparison of Spanish GAAP with 2004 IFRSs: Concessions
Comparison of Spanish GAAP with 2004 IFRSs: Concessions SP (Euro Millions) GAAP-04 IFRS - 04 Variation Turnover 15.3 15.3 +0.0 Operating Expenses 17.1 16.2 -0.9 Operating Cash-Flow (EBITDA) (1.8) (0.9) +0.9 Amortization and Provisions 0.2 0.1 -0.2 Operating Profit (EBIT) (2.0) (1.0) +1.1 Impairment
Slide 37: Table of Contents
Table of Contents 0. Introduction 1. General aspects 2. Main differences between Spanish GAAP and IFRSs affecting the ACS Group 3. Accounting options 4. Impact as of December 31, 2004 Summary of impacts by business area Comparative income statement - Spanish GAAP - IFRSs Comparative balance sheet -
Slide 38: March 2004: Total Group
Comparison of Spanish GAAP with IFRSs: Total Group March 2004 (Euro Millions) SP IFRSs Variation GAAP PGC NIIF Turnover 2,506.4 2,478.1 -28.2 Operating Cash-Flow (EBITDA) 206.1 201.4 -4.7 Operating Profit (EBIT) 144.3 140.8 -3.4 Ordinary Income 126.2 127.2 +0.9 Attributable Net Income 87.8 90.7 +2.9
Slide 39: March 2004: Construction
Comparison of Spanish GAAP with IFRSs: Construction March 2004 SP IFRSs Variation GAAP Turnover 1,217.8 1,217.8 +0.0 Operating Cash-Flow (EBITDA) 88.4 88.4 +0.0 Operating Profit (EBIT) 68.5 68.5 +0.0 Ordinary Income 73.6 74.1 +0.6 Attributable Net Income 51.2 51.8 +0.6 Operating Cash-Flow (Ebitda)/T
Slide 40: March 2004: Industrial
Comparison of Spanish GAAP with IFRSs: Industrial March 2004 (Euro Millions) SP IFRSs Variation GAAP Turnover 766.0 766.0 +0.0 Operating Cash-Flow (EBITDA) 61.2 57.6 -3.6 Operating Profit (EBIT) 50.3 47.0 -3.3 Ordinary Income 48.1 45.0 -3.1 Attributable Net Income 32.2 30.6 -1.6 Operating Cash-Flow
Slide 41: March 2004: Services
Comparison of Spanish GAAP with IFRSs: Services March 2004 (Euro Millions) SP IFRSs Variation GAAP Turnover 539.5 511.2 -28.2 Operating Cash-Flow (EBITDA) 65.8 64.7 -1.1 Operating Profit (EBIT) 33.9 33.6 -0.2 Ordinary Income 21.5 26.1 +4.7 Attributable Net Income 13.5 16.9 +3.4 Operating Cash-Flow (
Slide 42: March 2004: Concessions
Comparison of Spanish GAAP with IFRSs: Concessions March 2004 (Euro Millions) SP IFRSs Variation GAAP Turnover 0.4 0.4 N/A Operating Cash-Flow (EBITDA) (2.0) (2.1) N/A Operating Profit (EBIT) (0.9) (0.9) N/A Ordinary Income 7.3 3.8 -3.5 Attributable Net Income 8.2 5.4 -2.8 42
Slide 43: Actividades de Construcción y Servicios
ACTIVIDADES DE CONSTRUCCION Y SERVICIOS ca
ACS, Actividades de Construcción y Servicios — Investor Presentation (May 2005) on 6ix