Sacyr Sa · BME:SCYR
Sacyr Sa — Sacyr Vallehermoso — Q3 2010 Earnings Presentation
37 slides from Sacyr Sa's earnings presentation, Nov 15, 2010
Slide 1: Third quarter results
Third quarter results 15 November 2010 1
Slide 2: Agenda
• Period operatives keys • Analysis of 3Q10 results • Business areas • Appendices 2
Slide 3: Period operative keys
Period operative keys SyV third quarter results reflect the advancement made in: • INTERANTIONAL ACTIVITIES TARGET • PROFITABILITY: maintenance operating margin activities • Business financial restructuring: Vallehermoso’s debt renegociation it was completed (Property Development) • Finalcial Degear
Slide 4: International focus
International focus Backlog 50,443 Mn euros International 57% Spain 43% International revenue +20% 2009 2010 +20% International International 20% 30% Spain Spain 70% 80% Revenue 3Q09= €4,491 Mn Revenue 3Q10 = €3,625 Mn 4
Slide 5: Profitability: EBITDA margin
Profitability: EBITDA margin Ebitda margin 3Q 2010 = 8,8% (+ 1,4 pp vs. 3Q 2009 = 7,4%) 81.7% 79.5% 54.9% 51.3% 14.1% 12.9% 6.0% 5.2% Construction Services Concessions Property 3Q 2009 3Q 2010 Sustained operating margins across businesses Selective bidding Strict control over opex and overheads.
Slide 6: Refinancing of Vallehermoso
Refinancing of Vallehermoso • Extended debt deferred for five years (+3) • SyV has achived term and liquidity to complete projects in progress • Financial institutions have received real guarantees and prices Business requeriments: stabilized 6
Slide 7: Financial debt
Financial debt Million euros At 30 At 31 Dec Net debt September Change 9M 10 2009 2010 Corporate 608 527 15.5% Capital-intensive activities 5,022 5,328 -5.8% Testa 2,625 2,566 2.3% Sacyr Concesiones* 1,017 1,063 - 4.4% Vallehermoso 1,380 1,699 - 18.8% Equity investments and other 6,042 6,006 0.6% Re
Slide 8: Financial debt: Maturity
Financial debt: Maturity Million euros September Maturity Net debt 2010 10 11 12 Beyond Corporate 608 25 426 148 9 Capital-intensive activities 5,022 -34 228 188 4,640 Testa 2,625 1 120 107 2,397 Sacyr Concesiones* 1,017 -21 55 58 925 Vallehermoso 1,380 -14 53 23 1,318 Equity investments and other 6
Slide 9: Agenda
• Period operatives keys • Analysis of 3Q10 results • Business areas • Appendices 9
Slide 10: Key highlights
Key highlights At 30 At 30 % Change Million euros September September 10/09 2010 2009 International revenue contribution (%) 30% 20% 10 pp EBITDA 317 333 -4.6% EBITDA Margin(%) 8.8% 7.4% 1.4 pp EBIT 264 -72 n.s. PROFIT FROM CONTINUING ACTIVITIES 122 -386 n.S NET FINANCIAL DEBT 11,672 11,861* -1.6% *
Slide 11: Revenue
Revenue Million euros At 30 September Change BUSINESS AREA 2010 2009* 10/09 Construction 2,157 2,425 -11.1% Services 764 678 12.6% Residential Development (**) 316 395 -20.0% Rental Property 188 196 -4.1% Concessions 46 49 -5.2% Holding and adjustments -109 -194 Recurring revenue 3,362 3,549 -5.2% E
Slide 12: EBITDA
EBITDA Million euros At 30 September Change BUSINESS AREA 2010 2009 10/09 Construction 129 125 3.2% Services 108 88 23.3% Rental Property 149 160 -6.6% Concessions 25 25 1.4% Holding and adjustments 412 398 3.6% ACTIVITIES EX RESIDENTIAL -141 54 Ns DEVELOPMENT Residential Development (*) 46 -119 Ns
Slide 13: Backlog
Backlog Million euros At 30 September 2010 % BACKLOG BY ACTIVITY Backlog Ebitda(1) EBITDA Sacyr (construction backlog) 6,629 5.9% 392 Somague (construction backlog) 982 6.2% 61 Vallehermoso (pre-sales) 286 - 35 (2) Sacyr Concesiones (revenue backlog) 28,038 54.9% 15,404 Testa (leases at maturity) 2,
Slide 14: Agenda
• Period operatives keys • Analysis of 3Q10 results • Business areas • Appendices 14
Slide 15: Construction: Sacyr - Somague
Construction: Sacyr - Somague Million euros At 30September Chg. 10/09 CONSTRUCTION: SACYR-SOMAGUE 2010 2009* Revenue 2,156.6 2,425.0 -11.1% Spain 1,254.9 1,600.7 -21.6% International 901.7 824.3 9.4% EBITDA 129.1 125.1 3.2% EBITDA margin 6.0% 5.2% 0.8 NET PROFIT 58.5 58.8 -0.6% Net profit margin 2.7
Slide 16: Sacyr – Somague: Activity
Sacyr – Somague: Activity REVENUE (%) Ireland Chile 2% Other 2% Panama countries 1% Italy 4% 6% Spain 58% Portugal 27% REVENUE September 2010 % Total Civil work 1,766 82% Non-Residential construction 252 12% Residential construction 139 6% TOTAL 2,157 100% 16
Slide 17: Construction: high quality backlog
Construction: high quality backlog Backlog 7.611 Mn euros International Backlog Spain Countries Mn Euros 31% Italy 2,571 Panama 892 Portugal 702 Libya 669 Angola 209 International Chile 118 69% Other countries 118 Total 5,279 ¾ Specialisation in high value-added projects for their special technical
Slide 18: Services: Valoriza
Services: Valoriza Million euros At 30 September Chg. 10/09 SERVICES: VALORIZA 2010 2009 Revenue 763.7 678.1 12.6% EBITDA 108.0 87.7 23.3% EBITDA margin 14.1% 12.9% 1.2 NET PROFIT 29.8 30.9 -3. 5% Net profit margin 3.9% 4.6% -0.7 CASH FLOW 72.6 64.9 11.9% 18
Slide 19: Valoriza: Activity
Valoriza: Activity REVENUE EBITDA Sept Sept Var. Sept Sept Var. Million euros 2010 2009 10/09 2010 2009 10/09 ENVIRONMENT 222 201 11% 29 24 22% WATER 242 185 31% 34 21 63% MULTI-SERVICES 169 150 13% 12 8 45% ENERGY 131 142 -8% 33 35 -5% TOTAL 764 678 13% 108 88 23% EBITDA margin (%) 14.1 12.9 10.1 S
Slide 20: Valoriza: Activity
Valoriza: Activity Backlog by activity Multi-services 6% Environment 25% €11,922 million Water 30% International 53% Alternative energies 17% Leader in desalination and water treatment, with broad international footprint (e.g. Perth in Australia, Ashold in Israel) Projects with strong growth pot
Slide 21: Housing development: Vallehermoso
Housing development: Vallehermoso Million euros At 30 September Chg. 10/09 PROMOCIÓN: VALLEHERMOSO 2010 2009 Revenue 579.0 1,337.4 - 56.7% - Housing 311,3 389.5 -20.1% - Extraordinary housing sales 31.1 178.9 -82.6% - Extraordinary land sales 231.6 763.3 -69.7% - Services 5.0 5.7 -12.3% EBITDA -141.
Slide 22: Housing development: Vallehermoso
Housing development: Vallehermoso Net sales signed (no.of units) Homes pending delivery 422 +5,5% 444 2,380 1,500 Sep-09 Sep-10 Sep-09 Sep-10 • 1,500 homes delivered in the third quarter of 2010 (430 1Q ; 708 2Q; 362 3Q), •Vallehermoso maintains its market quote. Its penetration and positioning by p
Slide 23: Property: Testa
Property: Testa Million euros At 30 September Chg. 10/09 RENTAL PROPERTY: TESTA 2010 2009 Revenue 187.9 195.9 - 4.1% EBITDA 149.5 160.0 - 6.6% EBITDA margin 79.6% 81.7% - 2.1 NET PROFIT 45.4 104.5(*) - 56.5% Net profit margin CASH FLOW 79.3 149.3 - 46.9% (*) Includes €65.4 Mill of non-recurring inco
Slide 24: Testa: Products
Testa: Products Million euros At 30 September Chg. 10/09 PRODUCT 2010 2009 Offices 124.1 129.8 -4.4% Shopping centres 18.7 19.3 -3.0% Hotels 20.9 18.1 15.5% Housing 9.6 9.3 3.0% Industrial premises 8.4 8.7 -3.4% Senior citizens' homes 1.3 1.3 5.3% Garages 0.8 0.8 4.5% LFL RENTAL INCOME 183.8 187.3 -
Slide 25: Property: Testa
Property: Testa Revenue : 86% Madrid, Barcelona, Paris and Miami Revenue : 68% Offices Other Other uses 11% 14% Shopping United States Centers 6% 10% Paris 13% Hotels Madrid 11% 52% Offices 68% Cataluña 15% Last Asset value of €4,398 million at 31 December 2009 High quality assets portfolio, in
Slide 26: Concessions: Sacyr Concesiones
Concessions: Sacyr Concesiones (*) 2009 restated after application of IFRIC 12 and IFRS 5 Million euros At 30 September Chg. 10/09 CONCESSION: SACYR CONCESIONES 2010 2009* Revenue 46.1 48.6 -5.2% (a) EBITDA 25.3 24.9 1.4% EBITDA margin 54.9% 51.3% 3.6 NET PROFIT -26.5 -10.3 -156.5% Net profit margin
Slide 27: Sacyr Concesiones
Sacyr Concesiones Km under concession Revenue by product Services Italy Portugal areas 2% Transportation 6% 2% Ireland hubs 7% 11% Costa Rica 10% Hospitals 23% Spain 59% Motorw ays Chile 64% 16% Total 1,425 km 29 concessions: 9 under construction (or ramp up) and 20 in operation ensure margin grow
Slide 28: Sacyr Concesiones: Revenue and Traffic
Sacyr Concesiones: Revenue and Traffic Toll income Traffic Chg. Chg. (*) Million euros 2010 2009 10/09 2010 2009 10/09 Aunor (**) 0.2 0.2 0.0% 11,689 11,925 -2.0% Turia (**) 1.4 1.4 0.0% 37,305 36,569 2.0% Viastur 4.6 4.4 5.4% 21,908 20,579 6.5% Eresma 3.9 3.7 5.7% 6,505 6,034 7.8% Barbanza 3.4 3.2
Slide 29: Investees: Repsol
Investees: Repsol • The SyV Group holds a 20.01% • As at 30 September 2010, stake in oil company Repsol Repsol net profit amounted to €1,786 million, 32.5% more than last year. • As at 30 September 2010, Repsol has contributed €180 million to SyV’s results. Plataforma Sovex. Cuenca de Santos (Brasil
Slide 30: Agenda: Appendices
• Claves operativas • Análisis resultados 3T 2010 • Áreas de negocio • Appendices: 2010/2009 financial statements by business 30
Slide 31: Income Statement
Income Statement Million euros At 30 September INCOME STATEMENT 2010 2009(*) % Chg. 10/09 Revenue 3,625.0 4,490.6 -19.3% Other income 303.7 255.3 19.0% External services and operating costs -3,611.4 -4,413.1 -18.2% GROSS OPERATING INCOME 317.3 332.8 -4.6% Depreciation and amortisation expense -120.8
Slide 32: Balance Sheet
Balance Sheet Million euros Chg. 3Q 2010 BALANCE SHEET At 30 Sep. 10 At 31 Dec. 09 (*) Non-current assets 14,273.0 13,829.2 443.8 Investment properties 2,669.4 2,699.7 -30.3 Concession projects 1,635.4 1,435.1 200.3 Financial assets 9,142.0 8,931.1 210.9 Other non-current assets 826,2 763.3 62.9 Cur
Slide 33: Income Statement by business area at 30 September 2010
Income Statement by business area at 30 September 2010 3Q 2010 Income Statement CONSOLIDATED INCOME STATEMENT AS OF SEPTEMBER 30, 2010 2009 (Thousands of Euros) Sacyr Concessions Vallehermoso Testa Valoriza Somague Holding Adjustments TOTAL Revenue 1,572,180 46,072 578,957 187,895 763,659 584,434 35
Slide 34: Income Statement by business area at 30 September 2009
Income Statement by business area at 30 September 2009 3Q 2009* Income Statement CONSOLIDATED INCOME STATEMENT AS OF SEPTEMBER 30, 2009 (Thousands of Euros) Sacyr Concessions Vallehermoso Testa Valoriza Somague Holding Adjustments TOTAL Revenue 1,822,017 48,612 1,337,364 195,884 678,071 603,009 34,0
Slide 35: Balance Sheet by business area at September 2010
Balance Sheet by business area at 30 September 2010 Balance Sheet at September 2010 CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30,2010 (Thousands of Euros) Sacyr Concessions Vallehermoso Testa Valoriza Somague Holding Adjustments TOTAL NON CURRENT ASSETS 335,436 1,990,424 107,504 3,973,999 1,028,030
Slide 36: Balance Sheet by business area at December 2009
Balance Sheet by business area at 31 December 2010 Balance Sheet at 31 December 2009* CONSOLIDATED BALANCE SHEET AS OF DECEMBER 2009 (*) (Thousands of Euros) Sacyr Concessions Vallehermoso Testa Valoriza Somague Holding Ajustes TOTAL NON CURRENT ASSETS 253,256 1,806,277 127,098 3,809,317 996,720 182
Slide 37: Note on financial information
NOTE: the financial information presented in this document has been prepared in accordance with International Financial Reporting Standards. This information is not audited and may be modified in the future. Third quarter results 37