Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — Investor Presentation (September 2005)
31 slides from Acs, Actividades De Construccion Y Servicios Sa's investor presentation, September 2005
Slide 1: Consolidating the Leadership: Presentation to Investors
CONSOLIDATING THE LEADERSHIP Presentation to Investors September 2005 1
Slide 2: Index
Index 1. Brief Review of Grupo ACS 2. Key figures – 1H05 3. Business Opportunities 4. Conclusions 2
Slide 3: Grupo ACS: A reference in the construction and services industry
Grupo ACS A reference in the construction and services industry TOP GLOBAL CONTRACTORS RANK FIRM 1 VINCI, Rueil-Malmaison, Cedex, France 2 BOUYGUES, Saint-Quentin-en-Yvelines, France 3 Hochtief AG, Essen, Germany 4 Grupo ACS, Madrid, Spain 5 Bechtel, San Francisco, Calif., U.S.A. 6 7 Skanska AB, Sol
Slide 4: Grupo ACS well known for its performance efficiency
Grupo ACS … well known for its performance efficiency Source: BusinessWeek, June 2005 4
Slide 5: Grupo ACS with a history of successful integrations
Grupo ACS … with a history of successful integrations 1988 1996 1999 ONYX 2000 1983 1997 1993 1986 1989 2002-2003 1997 1999 5
Slide 6: Corporate strategy based on a clear value proposition
Grupo ACS Corporate strategy based on a clear value proposition Promotion Development Financing Operation Complete portfolio Own corporate culture of activities and values Industrial Construction Expertise Trust Services Services Concessions Commitment Profitability Cover clients needs of infrastruc
Slide 7: This strategy has allowed excellent financial figures
Grupo ACS This strategy has allowed the Group to achieve excellent financial figures Turnover Diversification 14 7 70% 6.3 5.7 11.5 12 11.0 6 x 11 52% 52% 55% 60% 51% 50% 10 x6 8.8 5 49% 4.3 50% 41% (Euros billions) (Euros billions) 8 4 40% 32% 33% 30% 6 3 30% 4.4 2.2 3.9 2.0 4 3.4 2 1.7 20% 2.5 2.7
Slide 8: ...and a strong generation of cash flow
Grupo ACS ...and a strong generation of cash flow Since the Grupo Dragados acquisition in 2002, a total cash flow of € 3,457 mn has been generated. Aggregate figures 2002 – 1H/2005 WORKING CAPITAL Operating CASH FLOW variation € 2,445 mn € 1,012 mn Source of Funds CASH FLOW NET FINANCING € 3,457 mn
Slide 9: Outstanding performance of the stock price
Grupo ACS …permitting an outstanding performance of the stock price 26.000 Max: 26,30€ 9-sep-05 26 € Min : 0,58€ 1-oct-92 24.000 24 € 22.000 22 € 20.000 Split 3x1 20 € 18.000 18 € Merger ACS+DRC Market Price ACS 16.000 16 € IBEX35 14.000 14 € Merger 12.000 OCP+GN 12 € 10.000 10 € Merger Split 4x1 8.
Slide 10: Index
Index 1. Brief Review of Grupo ACS 2. Key figures – 1H05 3. Business Opportunities 4. Conclusions 10
Slide 11: Extraordinary operating and financial performance in 1H/05
Key figures Extraordinary operating and financial performance in 1H/05 Turnover Strong sales growth € 5,720 mn +10.9% EBITDA Operating margins improvement € 501.4 mn +12.2% Equity method Contribution from Affiliates € 48.7 mn +59.7% Net Profit Excellent results € 272.5 mn +28.1% Corporate Net Debt K
Slide 12: 1H/05 Main Group Results
Key figures 1H/05 Main Group Results (Euro Million) 1H/04 1H/05 Variation Turnover 5.156,0 5.720,0 +10,9 % EBITDA 447,0 501,4 +12,2 % EBIT 329,7 377,4 +14,5 % Net Profit 212,7 272,5 +28,1 % EPS 0,61 € 0,78 € +28,6 % Total Net Debt 1.751,5 1.760,1 +0,5 % Corporate Net Debt 1.407,9 1.210,4 -14,0 % Pro
Slide 13: Operating ratios performance
Key figures Operating ratios performance 10,0% 35% 8,8% 8,7% 8,0% 33% 6,4% 6,6% 6,0% 31% 4,8% 4,1% 4,0% 29% 27,7% 2,0% 27% 26,7% 0,0% 25% June 2004 June 2005 EBITDA / Sales EBIT / Sales Net Profit / Sales Effective Tax rate 13
Slide 14: 1H/05 Results by business areas
Key figures 1H/05 Results by business areas Var. (Million Euros) Construction Industrial Services Services Turnover 2.643,1 +4,7% 1.960,7 +21,6% 1.158,1 +8.2% EBITDA 191,6 +4,4% 162,2 +26,1% 162,6 +13,5% Margin 7.2% 8,3% 14% EBIT 163,4 +4,9% 134,0 +23,9% 95,2 +24,2% Margin 6.2% 6,8% 8,2% PBT 171,8 +
Slide 15: 1H/05 Sales breakdown by area
Key figures 1H/05 - Sales breakdown by area (Million Euros) 1H/05 Var. 05/04 Construction 22% Civil Works 1.561,6 +4,9 % Home Building 487,3 +6,3 % Commercial Building 594,2 +2,9 % 60% 18% TOTAL 2.643,1 +4,7% Industrial Services 1H/05 Var. 05/04 18% 20% Networks 395,9 +11,7 % Specialized Products 62
Slide 16: Backlog breakdown by area
Key figures Backlog breakdown by area (Million Euros) Construction 1H/05 Var. 05/04 20% Civil Works 5.806,0 +1,3 % Home Building 1.148,9 +2,8 % 13% Commercial Building 1.764,1 +9,6 % 67% TOTAL 8.719,1 +3,1 % Industrial Services 1H/05 Var. 05/04 20% 24% Networks 962,4 +62,2 % Specialized Products 1.2
Slide 17: International activity 1H/05
Key figures International activity 1H/05 International International Growth exposure Var. opportunities (Million Euros) Sales Infrastructure concessions Construction 267,4 10% +39,4% development worldwide Industrial Services 598,3 31% +25,6% Energy, Oil & Gas facilities SUW treatment plants Services
Slide 18: Consolidated balance sheet
Key figures Consolidated balance sheet Jun-04 Dec-04 Variation (Euro Million) Jun-05 Jun 05/04 Tangible assets 1.739,6 1.973,5 2.142,0 +23,1 % Goodwill 998,1 1.012,1 1.032,7 +3,5 % Other intangible assets 648,0 590,8 750,0 +15,7 % Financial assets 1.394,7 1.868,1 2.192,9 +57,2 % Fixed Assets 4.780,4
Slide 19: Net debt evolution
Key figures Net debt evolution 2.600 IFRS 100% 2.400 90% 2.200 78% 80% 2.000 1.800 70% 55% % over Total Equity 1.600 60% Euro Million 1.400 48% 46% 50% 1.200 35% 40% 1.000 33% 27% 800 27% 24% 30% 22% 22% 600 20% 14% 20% 400 7% 10% 200 0 0% dec-00 dec-01 dec-02 dec-03 jun-04 dec-04 jun-05 Corporate N
Slide 20: Index
Index 1. Brief Review of Grupo ACS 2. Key figures – 1H05 3. Business Opportunities 4. Conclusions 20
Slide 21: Key factors in the Spanish construction sector
Business Opportunities Key factors in the Spanish construction sector Graph 1 - Construction output and Growth – by country (2004) Spanish construction sector: Source: Euroconstruct 4.3% 5.8% 1.9% 1.1% • One of the largest and most dynamic 1.0% 0.0% 3.2% -0.3% 206 197 markets across Europe 155 143 1
Slide 22: Construction: Visibility
Business Opportunities Construction Civil Works • 2005 Public Budget : +5% • PEIT 2005-20: € 249 bn Visibility • Strong investments by Regional Governments (PPP) Building PFI traditionally used in the Spain’s • Public: Health and Education infrastructures development • Commercial activity recovery p
Slide 23: Key factors in the industrial services sector
Business Opportunities Key factors in the industrial services sector Graph 1– Production and Use of energy – Spain – 96/03 Industrial services sector: Source: INE (National Statistics Institute) 300 35% 29,6% 30% • Substantial growth of energy demand 250 27,1% 26,1% 24,2% % of own production of ener
Slide 24: Industrial services: Growth
Business Opportunities Industrial services Energy Investments • New infrastructures • Sustained growth of demand Growth • Kyoto Protocol accomplishment • International market Government’s policy: assure supply Industrial maintenance capacity to satisfy new demand with an appropriate mix of energy so
Slide 25: Key factors in the urban services sector
Business Opportunities Key factors in the urban services sector Graph 1 – Spanish Population Evolution and Tourists entries Urban services sector: Source: INE (National Statistics Institute) Spanish Tourist Entries • Spanish Urban Services market addresses the Population growing Spanish population a
Slide 26: Urban Services: Recurrence
Business Opportunities Urban Services Public Services • Social demand for Environment • Outsourcing services Recurrence • New services to Public Administrations Transports and logistics Substantial growth backed by • Economic activity growth population and tourism rise • Globalization: export-import
Slide 27: Concessions: excellent market opportunities
Business Opportunities Concessions STABLE MARKET DEMAND CONDITIONS SUPPLY § Large availability of financial resources for this § Strong companies to face the whole § Increasing demand of new & more kind of projects value chain of these projects complex infrastructures § Contracting firms are the bes
Slide 28: Index
Index 1. Brief Review of Grupo ACS 2. Key figures – 1H05 3. Business Opportunities 4. Conclusions 28
Slide 29: Committed to value creation
Conclusions Committed to value creation Good operating performance: excellent results and 2005 prospects so far International expansion: International sales growth by 25% Capex in concessional projects: more than €540 mn invested in 1H/05 Financial soundness: gearing lower than 55% of total equity F
Slide 30: Competitive advantages
Conclusions Competitive advantages Services and Construction Industrial Services Concessions Highly competitive position in public sector Leadership position § Technological leadership in environmental projects services: - Proven quality and technical capacity State-of-the-art technical qualificatio
Slide 31: 2005 Targets
Conclusions 2005 Targets TURNOVER + 5 - 10% Construction + 5 - 8% Industrial Services + 8 - 12% Services and Concessions + 5 - 10% EBIT + 9 - 15% NET PROFIT ~ 20 % INVESTMENTS > € 1,000 mn 31