Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — FY2006 Earnings Presentation
45 slides from Acs, Actividades De Construccion Y Servicios Sa's earnings presentation, Feb 20, 2007
Slide 1: Results 2006 Strategy 2007
RESULTS 2006 STRATEGY 2007 20th of February 2007 1
Slide 2: Index
INDEX Executive Summary Results 2006 Strategy 2007 Conclusions 2
Slide 3: Executive Summary: 2006 An Excellent Year
Executive Summary 2006: An excellent year 2006 Δ Total Turnover € 14,067 mn +16 % EBIT € 972 mn +19 % Ordinary Profit € 835 mn +37 % Net Profit € 1,250 mn +105 % EPS 3.58 € +105 % Market Capitalization € 15,071 mn +57 % Number of Employees 123,652 +9 % 3
Slide 4: Executive Summary: Sustained Growth
Executive Summary Sustained Growth Turnover Solid sales growth € 14,067 mn +16.1% EBIT Ordinary Profit* Good operating results € 972 mn +18.9% € 835 mn +37.2% Increased Net Profit from Listed Affiliates affiliates contribution € 232 mn * Profit after taxes not including exceptional results 4
Slide 5: Executive Summary: High Profitability
Executive Summary High Profitability Net Capital Gain Urbis Sale of the stake in Urbis € 344 mn Net Profit € 1,250 mn +105.4% Other Other Income exceptional results € 71 mn 5
Slide 6: Executive Summary: Cash Flow Generation and Financial Structure
Executive Summary Strong Cash Flow Generation Cash flow from operations Cash Flow Generation € 942 mn +16.4% Cash Flow from Operating Activities € 1,399 mn Working Capital Excess € +457 mn Total Investment Investment in projects for the future € 5,407 mn +28.2 % Dividends Paid Profitability for shar
Slide 7: Index
INDEX Executive Summary Results 2006 Consolidated Results Summary Business Areas Consolidated Balance Sheet 31st of December 2006 Cash Flows 2006 Strategy 2007 Conclusions 7
Slide 8: Consolidated Results 2006: Main Figures
Consolidated Results 2006 Main Figures Euro Millions 2005 2006 Var Turnover 12,113.9 14,067.2 +16.1 % EBITDA 1,095.5 1,270.3 +16.0 % EBIT 817.4 971.6 +18.9 % Net Profit from Listed Affiliates 78.6 231.9 +194.9 % Ordinary Net Profit* 608.7 835.4 +37.2 % Net Profit 608.7 1,250.1 +105.4 % EPS 1.74 € 3.
Slide 9: Consolidated Results 2006: Breakdown by Activities
Consolidated Results 2006 Breakdown by Activities 2006 Turnover EBIT Net Profit 22% 16% 19% 4% 33% 42% 6% 48% 15% 33% 36% 26% International = 16.2% 2005 Turnover EBIT Net Profit 10% 4% 20% 24% 42% 18% 39% 47% 33% 29% 34% International = 17.4% Construction Industrial Services Services Concessions Urb
Slide 10: EBITDA Evolution Analysis
Consolidated Results 2006 EBITDA evolution analysis +16% + € 175 mn +9% Adjst. €-6 mn € 30 mn 29% +22% • Strong increase in the international activity € 75 mn +18% € 1,270 mn 32% • Sustained € 76 mn growth of the activities • Improvement of 31% • Important operating increase of margins 31% activity
Slide 11: Net Profit Evolution Analysis
Consolidated Results 2006 Net Profit evolution analysis +105% + € 641 mn € -167 € 71 +37% mn € 511 mn + € 226 mn mn € -14 mn € 185 €-99 mn € 1.250 mn € 154 mn mn Increase of the ABE: € +14 mn investment UNF: € +180 mn € 835 mn URB: € +6 mn Good performance of Others: € -15 mn € 609 mn the operating
Slide 12: Index
INDEX Executive Summary Results 2006 Consolidated Results Summary Business Areas Consolidated Balance Sheet 31st of December 2006 Cash Flows 2006 Strategy 2007 Conclusions 12
Slide 13: Construction: Results
Business Areas Construction: Results Million Euro 2005 2006 Var. 06/05 Turnover 5,724.8 6,750.3 +17.9 % EBITDA 427.5 504.0 +17.9 % EBIT 358.6 422.7 +17.9 % Cont. Operations PBT 369.9 443.2 +19.8 % Net Profit 239.1 282.1 +18.0 % EBITDA margin 7.5% 7.5% EBIT Margin 6.3% 6.3% Net Profit Margin 4.2% 4.2
Slide 14: Construction: Sales by Activity
Business Areas Construction: Sales by Activity Million Euro 2005 2006 Var. 06/05 Civil Works 3,363.9 3,888.5 +15.6 % Non residential Building 1,360.8 1,739.6 +27.8 % Residential Building 1,000.1 1,122.2 +12.2 % TOTAL 5,724.8 6,750.3 +17.9 % International 555.0 431.2 -22.3 % % 10% 6% Sales 2005 Sales
Slide 15: Construction: Backlog by Activity
Business Areas Construction: Backlog by Activity Million Euro 2005 2006 Var. 06/05 Civil Works 6,057.9 6,777.0 +11.9 % Non residential Building 1,956.1 2,067.7 +5.7 % Residential Building 1,355.0 1,816.5 +34.1 % TOTAL 9,369.0 10,661.1 +13.8 % International 595.4 761.3 +27.9 % % 6% 7% Backlog 2005 Ba
Slide 16: Construction: Main Contracts Awarded in 2006
Construction Main Contracts Awarded in 2006 Proyect Amount (€ mn) Type of Proyect Project for the construction of the Ionian Highway (Greece) 367 Roads Construction of four tunnels for the MTA in New York 234 Railways Construction of the Waterford Highway (Ireland) 138 Roads Construction of the Hosp
Slide 17: Industrial Services: Results
Business Areas Industrial Services: Results Million Euro 2005 2006 Var. 06/05 Turnover 4,077.4 4,747.7 +16.4 % EBITDA 344.4 419.6 +21.9 % EBIT 285.9 364.7 +27.6 % Cont. Operations PBT 263.3 322.0 +22.3 % Net Profit 179.2 222.6 +24.2 % EBITDA margin 8.4% 8.8% EBIT Margin 7.0% 7.7% Net Profit Margin 4
Slide 18: Industrial Services: Sales by Activity
Business Areas Industrial Services: Sales by Activity Million Euro 2005 2006 Var. 06/05 Networks 743.9 806.4 +8.4 % Specialized Products 1,314.3 1,541.1 +17.3 % Energy Projects 1,270.1 1,489.5 +17.3 % Control Systems 749.1 910.7 +21.6 % TOTAL 4,077.4 4,747.7 +16.4 % International 1,316.7 1,574.5 +19
Slide 19: Industrial Services: Backlog by Activity
Business Areas Industrial Services: Backlog by Activity Million Euro 2005 2006 Var. 06/05 Networks 793.8 792.7 -0.2 % Specialized Products 1,566.8 1,907.5 +21.7 % Energy Projects 982.0 1,388.4 +41.4 % Control Systems 926.0 998.0 +7.8 % TOTAL 4,268.6 5,086.6 +19.2 % International 1,233.8 1,457.7 +18.
Slide 20: Industrial Services: Main Contracts Awarded in 2006
Industrial Services Main Contracts Awarded in 2006 Proyect Amount (€ mn) Type of Proyect Combined plants and a wide range of projects in the Lazaro Cardenas 270 Energy Projects Refinery, in Minatitlan. Phase III (Mexico) Thermal power station building contract in Morata de Tajuna (Madrid) 212 Energy
Slide 21: Services: Results
Business Areas Services: Results Million Euro 2005 2006 Var. 06/05 Turnover 2,406.5 2,657.1 +10.4 % EBITDA 346.2 376.2 +8.7 % EBIT 203.7 224.6 +10.2 % Cont. Operations PBT 164.9 180.5 +9.5 % Net Profit 112.7 129.3 +14.7 % EBITDA margin 14.4% 14.2% EBIT Margin 8.5% 8.5% Net Profit Margin 4.7% 4.9% Ef
Slide 22: Services: Sales by Activity
Business Areas Services: Sales by Activity Million Euro 2005 2006 Var. 06/05 Environmental 1,081.8 1,191.1 +10.1 % Ports & Logistics Services 532.2 560.4 +5.3 % Transportation Services 189.9 198.5 +4.6 % Facility Management 602.6 707.1 +17.3 % TOTAL 2,406.5 2,657.1 +10.4 % International 225.7 268.8
Slide 23: Services: Backlog by Activity
Business Areas Services: Backlog by Activity Million Euro 2005 2006 Var. 06/05 Environmental 7,395.5 7,278.1 -1.6 % Ports & Logistics Services 3,809.7 4,885.3 +28.2 % Transportation Services 1,310.6 1,112.1 -15.1 % Facility Management 714.6 895.1 +25.2 % TOTAL 13,230.4 14,170.6 +7.1 % International
Slide 24: Services: Main Contracts Awarded in 2006
Services Main Contracts Awarded in 2006 Contract Amount (€ mn) Years Company Contract to clean the planes when landed in Málaga, Lanzarote and 143 7 Clece Fuerteventura airports. Water management contract for the city of Almendralejo (Extremadura) 75 20 Urbaser Stree cleaning in Cuidad Lineal (Madri
Slide 25: Affiliated Companies
Business Areas Affiliated companies Euro Millions 2005 2006 Var. 06/05 Stake 92.8 106.9 +15.2 % 24.8% 11.4 191.4 n.a. 40.5% 1 30.5 36.4 +19.3 % n.a. 2 40.6 n.a. 10.0% Income from Associates 134.7 375.3 +178.6 % Financial expenses (86.3) (220.6) Corporate tax 30.2 77.2 Attributable Net Profit 78.6 23
Slide 26: Index
INDEX Executive Summary Results 2006 Consolidated Results Summary Business Areas Consolidated Balance Sheet 31st of December 2006 Cash Flows 2006 Strategy 2007 Conclusions 26
Slide 27: Consolidated Balance Sheet: Main Figures
Consolidated Balance Sheet 31st of December 2006 Main Figures Million Euro dic-05 dic-06 Var. 06/05 Fixed Assets* 9,536 100% 15,105 100% +58 % Working Capital (1,872) 20% (2,497) 17% +33 % Total Equity 2,636 28% 3,256 22% +24 % Net Debt 4,265 45% 8,746 58% +105 % Non Recourse Financing 2,355 6,993 +
Slide 28: Net Debt Breakdown
Consolidated Balance Sheet 31st of December 2006 Net Debt Breakdown 2006 2005 Debit balance +766 Cash and € 1,570 mn € 804 mn equivalents Net debt with recourse Credit balance € 1.753 mn Long term +610 € 2,713 mn debt Gearing 53.8% s / P.N. € 3,323 mn 1.4x EBITDA 06 Non recourse € 2,356 mn financing
Slide 29: Evolution of Net Debt
Consolidated Balance Sheet 31st of December 2006 Evolution of Net Debt 10,000 100% 9,000 8,000 72% 75% 7,000 % over net worth 58% 6,000 Euro Million 51% 48% 5,000 44% 50% 54% 35% 4,000 3,000 27% 24% 22% 27% 25% 2,000 14% 20% 1,000 7% 0 0% dic-00 dic-01 dic-02 dic-03 dic-04 dic-05 dic-06 Corporate Ne
Slide 30: Index
INDEX Executive Summary Results 2006 Consolidated Results Summary Business Areas Consolidated Balance Sheet 31st of December 2006 Cash Flows 2006 Strategy 2007 Conclusions 30
Slide 31: Cash Flows 2006: Main Figures
Cash Flows 2006 Main Figures Million Euro 2005 2006 Var. 06/05 EBITDA 1,096 1,270 +16.0 % Cash Flow from Operations 808 941 +16.5 % Working Capital (Requirements) / Excess 567 457 -19.4 % Cash Flow from Operating Activities 1,375 1,399 +1.7 % Capital Expenditure (4,216) (5,407) +28.2 % Dividends pai
Slide 32: Cash Flow from Operating Activities Analysis
Cash Flows 2006 Cash Flow from Operating Activities Analysis €232 mn €-267 mn €-30 mn Services € 376 mn €-204 mn € 457 mn €-91 mn Industrial Services € 1.399 mn € 420 mn Construction € 504 mn Activities Others Dividends from Financial Corporate Other Working Capital Cash Flow affiliates Results Tax
Slide 33: Investments Breakdown
Cash Flows 2006 Investments Breakdown Gross Net Euro Million Divestments Investment Investment Construction 168 39 129 Industrial Services 552 64 488 Services 326 30 296 Concessions 328 52 276 Subtotal 1,374 185 1,189 Iberdrola 3,297 3,297 Unión Fenosa 1,728 1,728 1 Others 37 845 -807 TOTAL 6,436 1,
Slide 34: Index
INDEX Executive Summary Results 2006 Strategy 2007 Conclusions 34
Slide 35: Evolution of Grupo ACS
Evolution of Grupo ACS Grupo ACS has been the result of continuous and successful integration processes all through its history 2006 1999 2005 ONYX 1997 1996 1983 1986 1989 1997 2000 1988 1989 2002 - 2003 2003 Construction Urban Services Industrial Services Concessions Energy 35
Slide 36: Strategic Vision
Strategic Vision Grupo ACS is a world reference in Construction and Services... Urban Industrial Construction Energy Services Services Civil Concession Ports & Facility Industrial Electricity Electricity Building Environment Energy Projects Gas Works Development Logistics Management Maintenance Gene
Slide 37: Grupo ACS Pro-forma 2006
Grupo ACS Pro-forma 2006 Unión Fenosa consolidated through global integration Real Pro -forma Pro-forma Turnover € 14,067 mn € 20,100 mn EBITDA € 1,270 mn € 3,100 mn EBIT € 972 mn € 2,250 mn Net Profit € 1,250 mn € 1,250 mn Total Equity € 3,256 mn € 7,000 mn Net Debt € 8,746 mn € 14,300 mn Corporate
Slide 38: Summary of Unión Fenosa Strategic Plan 2007-11
Energy: a growth engine Summary of Unión Fenosa Strategic Plan 2007-11 EBITDA 2011 > 3.2 Bn € EPS 2011 EPS 2006 x 2 = 4 €/share Targets Financial Ratios 2011 Leverage < 55% & Debt/EBITDA = 3x Investment Capacity 9.0 Bn € TOTAL CAPEX 5.4 Bn € Recurrent Capex 2.5 Bn € Identified projects Capex 2.9 Bn
Slide 39: Affiliates: Commitment with European Leaders
Affiliates: Commitment with European Leaders Global Vision, Remarkable Size and European Leadership Grupo ACS maintains a strong industrial Grupo ACS reaffirms its commitment commitment for the long term with with the utilities industry in Europe Abertis, owning a 24.8% stake of the through the fina
Slide 40: Index
INDEX Executive Summary Results 2006 Strategy 2007 Conclusions 40
Slide 41: Conclusions: 2006, Better Than Expected
Conclusions 2006, better than expected Target Real 2006 2006 TURNOVER +10% +16% ORDINARY NET PROFIT ≈ 20% +37% NET PROFIT € 1,250 mn +105.4% CASH FLOW GENERATION NET INVESTMENTS ≈ € 1,400 mn > € 5,400 mn Sustained and Profitable Growth 41
Slide 42: Attractive Shareholder's Returns
Conclusions Attractive shareholder’s returns 180 €15,071 mn Market Cap. 157 150 € 42.71 / Sh 132 120 €9,602 mn Markey Cap. € 27.21 / Sh 90 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 IBEX35 Grupo ACS 15,0 EPS 3,58 € Market Capitalization CAGR1: 26.5% TR
Slide 43: Good Outlook 2007
Executive Summary Good Outlook 2007 Good Operating Perspectives More Growth Strategic strengthening in the More Opportunities Infrastructures and Energy sectors Integration of Unión Fenosa as a new area of activity in Grupo ACS More Visibility More Profitability for the Shareholders 43
Slide 44: Opportunities for Growth
Conclusions Opportunities for growth Construction Energy Strong Infrastructures Growing energy demand: demand: generation & PEIT 2005 - 2020 distribution Turnover > 10% Sustained investment from Net Profit ≈20% Higher visibility public on revenues administrations Environmental Industrial & Logistics
Slide 45: Results 2006 Strategy 2007
RESULTS 2006 STRATEGY 2007 20th of February 2007 45