Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — FY2005 Earnings Presentation
43 slides from Acs, Actividades De Construccion Y Servicios Sa's earnings presentation, Feb 27, 2006
Slide 1: Results 2005: Preparing the future
Results 2005: Preparing the future February 27th, 2006 1
Slide 2: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 2
Slide 3: Executive Summary: Solid growth and high profitability
Executive Summary Solid growth and high profitability Turnover Solid turnover growth € 12.114 mn +12,0 % Net Profit Outstanding results € 609 mn +34,5 % EBIT Thanks to the EBIT growth € 817 mn +12,9 % Profit from Affiliates Increased contribution of the affiliates € 145 mn +53,5 % Total Backlog Impo
Slide 4: Executive Summary: Strong cash flow generation
Executive Summary Strong cash flow generation and Investment in projects for the future Working Capital Working capital improvements € (1.872 mn) +43,5 % Cash Flow Generation Strong cash generation € 1.354 mn +27,5 % Investment Investment in projects for the future € 4.217 mn +252,4 % Dividends Paid
Slide 5: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 5
Slide 6: Consolidated Results 2005: Key Figures
Consolidated Results 2005 Key Figures Euro Millions 2004 2005 Var Turnover 10.817,9 12.113,9 +12,0 % EBITDA 981,1 1.095,5 +11,7 % EBIT 723,9 817,4 +12,9 % Profit from Affiliates 94,4 144,9 +53,5 % Net Profit 452,5 608,7 +34,5 % EPS 1,30 € 1,74 € +34,3 % 6
Slide 7: Breakdown By Activities
Consolidated Results 2005 Breakdown By Activities 2005 Turnover EBIT Net Profit 4% 2% 20% 24% 15% 35% 42% 47% 17% 33% 34% 27% 2004 Turnover EBIT Net Profit 11% 4% 20% 24% 18% 44% 40% 48% 32% 32% 27% Construction Industrial Services Services Concessions Urbis Unión Fenosa NOTE: The percentages have b
Slide 8: Analysis of the evolution of the EBITDA
Consolidated Results 2005 Analysis of the evolution of the EBITDA +10% € 32 mn + € 114 mn +12% 31% +18% • Increase in all activities, specially in Ports € 53 mn • Improvement on operating margins +7% € 1,095 mn 31% • Outstanding € 29 mn evolution of energy projects • Increase in 31% • Activity Incre
Slide 9: Analysis of the evolution of the net profit
Consolidated Results 2005 Analysis of the evolution of the net profit +15% + € 157 mn +35% € 43 mn +54% +13% -34% Positive foreign € 51 mn currency change €-30 mn results Lower effective tax rate Increase of the ABE: € +21 mn € 94 mn investement UNF: € +11 mn Decrease of the URB: € +9 mn restructuri
Slide 10: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 10
Slide 11: Construction: Results
Business Areas Construction: Results Million Euro 2004 2005 Var. 05/04 Turnover 5.230,3 5.724,8 +9,5 % EBITDA 398,1 427,6 +7,4 % EBIT 327,7 358,6 +9,4 % Cont. Operations PBT 336,0 369,9 +10,1 % Net Profit 221,4 239,1 +8,0 % EBITDA margin 7,6% 7,5% EBIT Margin 6,3% 6,3% Net Profit Margin 4,2% 4,2% Ef
Slide 12: Construction: activity breakdown
Business Areas Construction: activity breakdown Million Euro 2004 2005 Var. 05/04 Civil Works 3.148,9 3.363,9 +6,8 % Non residential Building 1.171,3 1.360,8 +16,2 % Residential Building 910,1 1.000,1 +9,9 % TOTAL 5.230,3 5.724,8 +9,5 % International 484,4 555,0 +14,6 % % 9% 10% Sales 2004 Sales 200
Slide 13: Construction: backlog breakdown
Business Areas Construction: backlog breakdown Million Euro 2004 2005 Var. 05/04 Civil Works 5.657,2 6.057,9 +7,1 % Non residential Building 1.739,3 1.956,1 +12,5 % Residential Building 1.129,0 1.355,0 +20,0 % TOTAL 8.525,5 9.369,0 +9,9 % International 593,3 595,4 +0,4 % % 7% 6% Backlog 2004 Backlog
Slide 14: Industrial Services: Results
Business Areas Industrial Services: Results Million Euro 2004 2005 Var. 05/04 Turnover 3.490,5 4.077,4 +16,8 % EBITDA 291,8 344,4 +18,0 % EBIT 244,9 285,9 +16,8 % Cont. Operations PBT 215,5 263,3 +22,2 % Net Profit 150,1 179,2 +19,4 % EBITDA margin 8,4% 8,4% EBIT Margin 7,0% 7,0% Net Profit Margin 4
Slide 15: Industrial Services: sales by activity
Business Areas Industrial Services: sales by activity Million Euro 2004 2005 Var. 05/04 Networks 722,2 744,0 +3,0 % Specialized Products 1.170,2 1.314,4 +12,3 % Energy Projects 954,8 1.270,2 +33,0 % Control Systems 643,3 749,0 +16,4 % TOTAL 3.490,5 4.077,4 +16,8 % International 1.084,7 1.316,7 +21,4
Slide 16: Industrial Services: backlog breakdown
Business Areas Industrial Services: backlog breakdown Million Euro 2004 2005 Var. 05/04 Networks 586,0 793,9 +35,5 % Specialized Products 1.120,0 1.566,7 +39,9 % Energy Projects 1.007,7 982,0 -2,5 % Control Systems 701,2 926,0 +32,0 % TOTAL 3.414,9 4.268,6 +25,0 % International 1.029,0 1.233,8 +19,9
Slide 17: Services: Results
Business Areas Services : Results Million Euro 2004 2005 Var. 05/04 Turnover 2.186,5 2.406,5 +10,1 % EBITDA 314,6 346,2 +10,1 % EBIT 177,8 203,7 +14,6 % Cont. Operations PBT 138,8 164,9 +18,8 % Net Profit 98,9 112,7 +14,0 % EBITDA margin 14,4% 14,4% EBIT Margin 8,1% 8,5% Net Profit Margin 4,5% 4,7%
Slide 18: Services: Sales by activity
Business Areas Services: Sales by activity Million Euro 2004 2005 Var. 05/04 Environmental 1.000,4 1.081,8 +8,1 % Ports & Logistics 463,6 532,2 +14,8 % Passenger Transportation 178,1 189,9 +6,6 % Facility Management 544,4 602,6 +10,7 % TOTAL 2.186,5 2.406,5 +10,1 % International 227,4 225,7 -0,7 % %
Slide 19: Services: backlog breakdown
Business Areas Services: backlog breakdown Million Euro 2004 2005 Var. 05/04 Environmental 6.512,6 7.395,5 +13,6 % Ports & Logistics 3.335,6 3.809,7 +14,2 % Passenger Transportation 1.475,0 1.310,6 -11,1 % Facility Management 664,9 714,6 +7,5 % TOTAL 11.988,1 13.230,4 +10,4 % International 1.145,1 1
Slide 20: Affiliated companies
Business Areas Affiliated companies Euro Millions 2004 2005 Var. 05/04 Stake Abertis 72,1 92,8 +28,8 % 24,8% Urbis 21,2 30,5 +43,7 % 24,4% UNF 11,4 24,5% Total 93,3 134,7 +44,4 % 20
Slide 21: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 21
Slide 22: Consolidated Balance Sheet: Key Figures
Consolidated Balance Sheet December 31st 2005 Key Figures Million Euro dec-2004 dec-2005 Var. 05/04 Fixed Assets 5.408 100% 9.536 100% +76 % Working Capital (1.305) 24% (1.872) 20% +43 % Total Equity 2.019 37% 2.636 28% +31 % Net Debt 1.424 26% 4.265 45% +199 % Non Recourse Financing 462 2.355 +409
Slide 23: Gearing increase
Consolidated Balance Sheet December 31st 2005 Gearing increase 2005 2004 Debit balance +284 € 804 mn Treasury € 520 mn Net debt with recourse Credit balance € 1,909 mn Gearing 72% s / P.N. Long term € 1,482 mn +1,231 1,74x EBITDA 05 debt € 2,713 mn Non recourse € 462 mn financing +1,894 Total net de
Slide 24: Net debt evolution
Consolidated Balance Sheet December 31st 2005 Net debt evolution 4.500 100% 4.000 72% 3.500 72% 3.000 51% % over net worth 48% Euro Million 2.500 44% 35% 44% 2.000 27% 24% 22% 1.500 14% 27% 20% 16% 1.000 7% 500 0 -12% dic-00 dic-01 dic-02 dic-03 dic-04 dic-05 Corporate Net Debt Non recourse financin
Slide 25: Value generation through optimization of the financial structure
Consolidated Balance Sheet December 31st 2005 Value generation through optimization of the financial structure Reduction of the cost of the resources WACC05 < 7,2% Increase of the shareholder’s ROE05 > 27% profitability Investment capacity maintenance Re-gearing potential 25
Slide 26: Evolution of the capital profitability
Consolidated Balance Sheet December 31st 2005 Evolution of the capital profitability 6.000 30% 27,5% 5.000 23,6% 25% 21,1% 4.000 19,2% 20% Euro million 17,3% 3.000 16,4% 14,2% 14,5% 13,9% 13,8% 15% 12,9% 2.000 10,9% 10% 1.000 0 5% 2000 2001 2002 2003 2004 2005 Total equity ROE ROCE Nota: 2003 net re
Slide 27: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 27
Slide 28: Cash Flows 2005: Key Figures
Cash Flows 2005 Key Figures Million Euro 2004 2005 Var. 05/04 Cash Flow from Operations 652 808 +23,9 % Working Capital (Requirements) / Excess 410 546 +33,3 % Cash Flow from Operating Activities 1.062 1.354 +27,5 % Net Capital Expenditure (1.196) (4.217) +252,4 % Dividends paid (97) (138) +42,6 % O
Slide 29: Cash flow from operating activities analysis
Cash Flows 2005 Cash flow from operating activities analysis €101 mn €-30 mn €-116 mn Services & Concessions € 353 mn € 546 mn €-171 mn Industrial Services €-101 mn € 1,354 mn € 344 mn Construction € 428 mn Activities Consolidation Dividends from Financial Taxes Other Working capital Cash flow adjus
Slide 30: Cash flow from operating activities evolution
Cash Flows 2005 Cash flow from operating activities evolution + € 292 mn +27% +32% €136 mn +178% -34% +2% €-30 mn €6 mn €64 mn +12% Improved € 1,354 mn €114 mn working capital management More € 1,062 mn contribution from ABE y UNF 2004 Dividends from Financial Taxes and Working 2005 EBITDA affiliate
Slide 31: Breakdown of investments
Cash Flows 2005 Breakdown of investments Fixed assets Concession Total (Euro million) investment projects investment %/Total Construction 121 38 159 4% Machinery 60 Madrid Calle 30 34 Majadahonda Hospital 22 Can Brians 16 Others 27 Industrial Services 95 185 280 7% Wind farms 116 High tension lines
Slide 32: Investment in Unión Fenosa
Cash Flows 2005 Investment in Grupo ACS has acquired in 2005 a 24.5% of Unión Fenosa, for a total investment of € 2,423 millions Strategic investment to become the reference shareholder of the third utility in Spain. Consolidating industry with growing perspectives. 9Spain is the 4th electrical mark
Slide 33: Investment in Abertis
Cash Flows 2005 Investment in Grupo ACS maintains a strong industrial commitment for the long term with Abertis and has increased its stake up to the 24.8% It is the leader European concessions company by market cap and number of projects We share the same strategic vision on the development and
Slide 34: Results 2005: preparing the future
Results 2005: preparing the future Executive Summary Consolidated Results 2005 Business Areas Consolidated Balance Sheet December 31st 2005 Cash Flows 2005 Prospects for 2006 34
Slide 35: Prospects for 2006: macroeconomic environment with growth opportunities
Prospects for 2006 Based on a macroeconomic environment with growth opportunities Sustained growth of the Spanish population: 44 mn habitants 55 mn tourists per year Industrial Urban Construction Services Services Strong infrastructures Growing energy Externalization demand: demand: production & Env
Slide 36: Competitive advantages of Grupo ACS
Prospects for 2006 Competitive advantages of Grupo ACS OPERATIVE FINANCIAL CORPORATE EFFICIENCY STRENGHT LEADERSHIP Strong cash A project for Higher profits flow the future generation VALUE CREATION FOR OUR SHAREHOLDERS 36
Slide 37: Attractive returns for the shareholder
Prospects for 2006 Attractive returns for the shareholder 162,0 162.0 €9,602 mn 150 market cap. € 27.21 per share 130 118,2 118.2 110 €5,928 mn market cap. € 16.80 90 per share Dec - 04 dic-04 Jan - 05 ene-05 Feb - 05 feb-05 Mar - 05 mar-05 Apr - 05 abr-05 May - 05 may-05 Jun - 05 jun-05 Jul - 05 ju
Slide 38: ANNEXES: Financial Statements
Results 2005 ANNEXES Financial Statements 38
Slide 39: Consolidated P&L
Financial Statements2005 Consolidated P&L Euro Millions 2004 2005 Var Turnover 10.817,9 12.113,9 +12,0 % Other revenues 443,7 447,6 Total Income 11.261,5 12.561,5 +11,5 % Operating Expenses (10.280,4) (11.466,0) Operating Cash Flow (EBITDA) 981,1 1.095,5 +11,7 % Fixed Assets depreciation (230,5) (23
Slide 40: P&L by areas
Financial Statements2005 P&L by areas Industrial Servic es and Construc tion Adjustments Grupo ACS January - December Servic es c onc essions Million Euro Net Sales 5.724,8 4.077,4 2.420,3 (108,6) 12.113,9 Other revenues 318,4 16,9 95,0 17,3 447,6 Total Income 6.043,2 4.094,3 2.515,3 (91,2) 12.561,5
Slide 41: Consolidated balance sheet
Financial Statements2005 Consolidated balance sheet Million Euro dic-04 dic-05 Var. 05/04 Tangible fixed assets 1.981,0 2.356,0 +19 % Goodwill 1.010,8 1.047,6 +4 % Intangible fixed assets 305,7 451,9 +48 % LT financial investments 1.833,2 5.317,9 +190 % Other non-current assets 277,6 362,3 +31 % Fix
Slide 42: Balance sheet per areas
Financial Statements2005 Balance sheet per areas Industrial Servic es and Construc tion Adjustments ACS Group Servic es Conc essions December 31st, 2005 Million Euro Tangible fixed assets 400,5 475,5 1.471,2 8,7 2.356,0 Goodwill 68,2 198,4 780,9 1.047,6 Intangible fixed assets 4,2 178,0 269,7 0,0 45
Slide 43: Cash flow statement
Financial Statements2005 Cash flow statement Million Euro 2004 2005 Var. 05/04 Cash Flow from Operations 652,4 808,0 +23,9 % Working Capital (Requirements) / Excess 409,9 546,2 +33,3 % Cash Flow from Operating Activities 1.062,3 1.354,2 +27,5 % Fixed assets investments (274,4) (261,4) Concessional p