Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — Investor Presentation (November 2005)
35 slides from Acs, Actividades De Construccion Y Servicios Sa's investor presentation, November 2005
Slide 1: Grupo ACS Presentation to Investors
Grupo ACS Presentation to Investors November 2005 1
Slide 2: Content
Content Our Group Our Businesses Our Core Stakes Conclusions 2
Slide 3: Our strategic vision
Our strategic vision Grupo ACS is a world leading construction and services group, Construction & Services CONSTRUCTION INDUSTRIAL URBAN SERVICES SERVICES Infrastructures Energy Total capital invested: € 5.3 bn which actively participates in the development of key industries 3
Slide 4: Our mission
Our mission A world reference in the construction and services industry TOP GLOBAL CONTRACTORS RANK FIRM # 1 in Spain 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
Slide 5: Our history
Our history We present an unrivalled history of value creation through successful integration processes 5
Slide 6: Our financial track record
Our financial track record Turnover Diversification Turnover generated by non construction activities 12.0 In % over total turnover 54% 6.5 11.0 5.7 8.8 x6 +24 p.p. 4.3 Euros billion Euros billion 4.4 3.9 2.2 3.4 2.0 1.7 30% 2.7 2.5 2.2 1.9 1.1 0.8 0.7 0.6 1996 1997 1998 1999 2000 2001 2002 2003 200
Slide 7: Cash flow generated 2002 – Sep 2005
Cash flow generated 2002 – Sep 2005 Since the Grupo Dragados acquisition in 2002, an excess of € 3.7 bn of total cash flow has been generated. Net investments (excluding UNF deal) account for close to € 3.5 bn Aggregate figures 2002 – 3Q/2005 WORKING CAPITAL Operating CASH FLOW variation € 2,648 mn
Slide 8: Key figures, First 3 Quarters 05
Key figures, First 3 Quarters 05 Euro Millions 3Q/04 3Q/05 Var Turnover 7.941,4 8.891,3 +12,0 % EBITDA 704,2 785,7 +11,6 % EBIT 517,4 596,4 +15,3 % Profit from Associates 65,3 93,4 +43,1 % Net Profit 338,7 440,3 +30,0 % EPS 0,97 € 1,26 € +30,2 % Total Net Debt 2.009,8 1.960,0 -2,5 % Corporate Net De
Slide 9: Operating ratios performance 3Q/05
Operating ratios performance 3Q/05 10% 8,9% 8,8% 8% 6,5% 6,7% 6% 5,0% 4,3% 4% 2% 0% 3Q/04 3Q/05 EBITDA/Sales EBIT/Sales Net Profit/Sales 9
Slide 10: Breakdown by activity 3Q/05
Breakdown by activity 3Q/05 3Q/05 Turnover EBIT Net Profit 5% 12% 20% 24% 38% 42% 46% 17% 34% 34% 28% 3Q/04 Turnover EBIT Net Profit 11% 3% 20% 23% 17% 45% 42% 48% 32% 32% 27% Construction Industrial Services Services Concessions Urbis NOTE: Percentages are calculated over the sum of the activities
Slide 11: Consolidated balance sheet 3Q/05
Consolidated balance sheet 3Q/05 Million Euro sep-04 dec-04 sep-05 Var. 05/04 Tangible fixed assets 1.791,4 1.981,0 2.255,6 +25,9 % Goodwill 1.000,4 1.012,1 1.039,1 +3,9 % Intangible assets & others 629,0 590,8 825,1 +31,2 % LT financial assets 1.812,5 1.868,1 2.542,5 +162,7 % 22% Stake in UNF 2.219
Slide 12: Net debt evolution
Net debt evolution 2.600 100% 2.400 86% 2.200 2.000 72% 1.800 55% % over Net Worth 1.600 48% 46% Euro Millions 1.400 39% 35% 44% 1.200 27% 1.000 22% 27% 24% 23% 800 14% 20% 16% 600 7% 400 200 0 -12% dec-00 dec-01 dec-02 dec-03 sep-04 dec-04 sep-05 Corporate Net Debt Project Finance Corporate Net Deb
Slide 13: Cash flow statement 3Q/05
Cash flow statement 3Q/05 Million Euro 3Q/04 3Q/05 Var. 05/04 Cash Flow from Operations 478,6 561,3 +17,3 % Working Capital (Requirements) / Excess (192,2) 212,9 n.a. Cash Flow from Operating Activities 286,4 774,2 +170,3 % Fixed assets investments (257,7) (311,0) +0,0 % Concessional projects invest
Slide 14: Content
Content Our Group Our Businesses Our Core Stakes Conclusions 14
Slide 15: Key figures first 9 months 05, breakdown by business
Key figures first 9 months 05, breakdown by business (Million Euros) Construction Industrial Services Services Turnover 4.174,4 +7,9% 3.010,5 +19,3% 1.777,7 +8,9% EBITDA 307,3 +5,4% 247,8 +19,7% 252,1 +13,3% Margin 7,4% 8,2% 14,2% EBIT 261,7 +8,5% 209,4 +20% 148,3 +22,7% Margin 6,3% 7% 8,3% PBT 276,
Slide 16: Construction outlook
Construction outlook Million Euro 3Q/04 3Q/05 Var. 05/04 Sales 3Q/05 Civil Works 2.312,4 2.460,5 +6,4 % 18% Non residential Building 868,1 970,1 +11,7 % Residential Building 687,7 744,1 +8,2 % TOTAL 3.868,2 4.174,7 +7,9 % 23% 59% International 302,3 415,5 +37,4 % % 8% 10% It allows the Group to fina
Slide 17: Key factors in the Spanish construction sector
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% • One of the largest and most dynamic 1.0% 1.1% 3.2% 0.0% -0.3% markets across Europe 197 206 155 • Ambitious and parliamentar
Slide 18: Industrial services outlook
Industrial services outlook Million Euro 3Q/04 3Q/05 Var. 05/04 Sales 3Q05 Networks 526,3 577,4 +9,7 % 18% 19% Specialized Products 872,8 963,5 +10,4 % Energy Projects 659,5 932,9 +41,4 % Control Systems 465,5 536,7 +15,3 % TOTAL 2.524,1 3.010,5 +19,3 % International 746,1 961,7 +28,9 % 31% 32% % 30
Slide 19: Key factors in the industrial services sector
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% • Substantial growth of energy demand 250 27,1% 26,1% 30% 24,2% % of own production of energy 23,5% 23,3% 25% • Ca
Slide 20: Industrial services areas: Networks
Industrial services areas Main supplier of utilities & large industrial corporations 3Q05 Networks 1st line: Revenues € 577 mn 2nd line: Backlog € 848 mn Maintenance of LT electric networks Maintenance of gas & water installations and networks Industrial maintenance and support services 20
Slide 21: Industrial services areas: Specialized Products
Industrial services areas Global player in the support services market 3Q05 Specialized Products 1st line: Revenues 2nd line: Backlog Installment and maintenance of HT electric networks Engineering, installation, and maintenance of telecommunications systems Maintenance of railways systems € 963 mn
Slide 22: Industrial services areas: Energy Projects
Industrial services areas World reference in the integrated projects industry 3Q05 Energy Projects 1st line: Revenues 2nd line: Backlog Electricity projects & renewable energy Oil & gas facility projects Off-shore platforms High speed railway projects € 933 mn € 1,157 mn 22
Slide 23: Industrial services areas: Control Systems
Industrial services areas Spanish leading company in control systems 3Q05 Control Systems 1st line: Revenues 2nd line: Backlog Traffic & transport control systems Lightening systems Integral maintenance of public infrastructures € 537 mn € 780 mn 23
Slide 24: Urban services outlook
Urban services outlook Million Euro 3Q/04 3Q/05 Var. 05/04 Sales 3Q05 Environmental 755,3 801,1 +6,1 % 25% Ports & Logistics 342,8 398,4 +16,2 % Passenger Transportation 128,7 137,3 +6,7 % 45% Facility Management 405,6 440,9 +8,7 % 8% TOTAL 1.632,4 1.777,7 +8,9 % International 162,7 163,7 +0,6 % % 1
Slide 25: Key factors in the urban services sector
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 as well as the 55 + 10%
Slide 26: Urban services areas: Environmental services
Urban services areas 3Q05 Environmental services Urban Solid Waste (USW) 1st line: Revenues 2nd line: Backlog € 801 mn management and treatment € 7,400 mn Collection & street cleaning Treatment Plants Landfills Waste to Energy Plants Special Waste management: Hospital & industrial waste 26
Slide 27: Urban services areas: Ports & logistics
Urban services areas 3Q05 Ports & logistics Integral logistics operator : 1st line: Revenues 2nd line: Backlog – Port handling – Shipping Agent – Land, air and sea forwarding – Combined transport & specialized logistics € 398 mn € 3,216 mn 27
Slide 28: Urban services areas: Passenger transportation
Urban services areas 3Q05 Passenger transportation Scheduled passenger service on a 1st line: Revenues 2nd line: Backlog concession basis: – Long distance, intercity and urban road transportation – Services in the Madrid, North of Spain, Catalonia and Andalusia – New routes through concession acquis
Slide 29: Urban services areas: Facility management
Urban services areas 3Q05 Facility management Integrated building maintenance & 1st line: Revenues 2nd line: Backlog cleaning Gardening, reforestation and landscape restoration Airports’ multiservices Social-sanitary services € 441 mn € 503 mn 29
Slide 30: Content
Content Our Group Our Businesses Our Core Stakes Conclusions 30
Slide 31: Infrastructures
Infrastructures: 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 Legal framework which encourages Public & Con
Slide 32: Energy: Grupo ACS has acquired 22% of Unión Fenosa
Energy: Grupo ACS has acquired 22% of Unión Fenosa, for a total amount of € 2,219 million, equivalent to € 33 per share Investment Rationale Unión Fenosa Snapshot Strategic investment to become the reference Domestic Electricity Gas International Soluziona 57% of EV 11% of EV 20% of EV 4% of EV shar
Slide 33: Content
Content Our Group Our Businesses Our Core Stakes Conclusions 33
Slide 34: Conclusions
Conclusions Good operating performance: excellent results and 2005 prospects so far International expansion through organic growth Strategic investment in Union Fenosa Ordinary Capex committed to sustainable & profitable growth Financial soundness Focus on shareholder’s return 34
Slide 35: We fulfill our targets
We fulfill our targets 2005 Initial Target 3Q05 TURNOVER + 5 - 10% + 12% Construction + 5 - 8% + 7.9% Industrial Services + 8 - 12% + 19.3% Services and Concessions + 5 - 10% + 8.6% EBIT + 9 - 15% + 15.3% NET PROFIT +15 - 20 % + 30% ORDINARY INVESTMENTS > € 1,000 mn >1,200mn 35