Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — Debt Investor Presentation (July 2014)
54 slides from Acs, Actividades De Construccion Y Servicios Sa's debt investor presentation, July 2014
Slide 1: Presentation to Fixed Income Investors
Presentation to Fixed Income Investors July 2014
Slide 2: A world leading infrastructure developer
A world leading infrastructure developer… Grupo ACS is a world reference in the infrastructure industry, developing both civil and industrial engineering projects. EBITDA 2013 Market Cap Revenues 2013 1Q14 Backlog (30/06/14) > € 38.4 bn € 63.9 bn € 3.0 bn € 10.5 bn Construction Industrial Services E
Slide 3: A solid track record of integration and operating growth
… with a solid track record of integration and operating growth … Grupo ACS achieved a CAGR of a 16% in revenues since 2003 through different integration processes and organic growth. EBITDA CAGR 14% in the period 2003-13 thanks to a successful internationalization process Revenues (€ mn) EBITDA (€
Slide 4: An advantageous competitive position in developed markets
... and an advantageous competitive position in developed markets … World leader in Construction World leader in Greenfield Concessions A leader on its reference markets ACS can successfully bid for large and complex projects all around the world ACS has the expertise, the size and the ability to at
Slide 5: Based on a clear corporate strategy
… based on a clear corporate strategy ACS pursues operating efficiency, promoting best practices and corporate culture amongst Group’s companies A Global Group Unique culture and Sector Leadership Operational independence strategy Decentralization Client Service Profit Orientation Risk Management Co
Slide 6: Sustainable value creation
... with defined corporate targets Strategic objectives 2014-2016 Moderate Attractive return Profitable Growth financial gearing to shareholders Business Net Debt* Recurrent Net Profit annual growth EBITDA Stable dividend >10% < 1.4x policy Sustainable value creation * Excluding Debt (and EBITDA) fr
Slide 7: Key financial figures
Key financial figures € mn 2013 Comp. Var.* Q1 14 Comp. Var.* Sales 38,373 +6.1% 8,800 +9.0% Backlog 63,419 -2.0% 63,874 -1.8% EBITDA 3,002 +3.1% 648 +0.8% EBIT 1,746 +16.9% 421 +11.1% Net Profit 702 n.a. 200 +20.6% 7 * Excluding f/x impacts and perimeter changes
Slide 8: Geographical diversification
Geographical diversification Grupo ACS operates worldwide, focused on developed countries Extensive geographic diversity. ACS has significant international operations: construction, industrial services and environment derived respectively 95%, 61% and 36% of their sales abroad in 2013 North America
Slide 9: Backlog breakdown as of March 2014
Backlog breakdown as of March 2014 Total Backlog Environment 63,874 mn Africa € 486 mn € 8,210 mn 1% Spain € 9,992 mn 13% 16% Industrial 12% Rest of Services Asia Pacific Europe € 7,508 mn € 27,431 mn 43% 13% € 8,594 mn 75% Construction € 48,156 mn 27% America € 17,372 mn Growth in relevant Opportun
Slide 10: Business diversification
Business diversification Sales Breakdown by activities EBITDA Breakdown by activities Environment Environment € 1,781 mn € 275 mn Industrial Services € 7,067 mn 5% 9% 18% Industrial 2013 Services 2013 31% € 38.4 bn € 937 mn € 3.0 bn 60% 77% Construction € 29,559 mn Construction € 1,826 mn Substantia
Slide 11: Operating margins
Operating margins 2013 EBITDA (€mn) 2013 EBITDA margin (€mn) 1,826 15.4% 13.3% € 3.0 bn Average 7.8% 937 6.2% 275 Construction Industrial Environment Construction Industrial Environment Services Services 11
Slide 12: Stable cash flow generation from operations
Stable cash flow generation from operations … FFO before WC variation and CAPEX (€mn) Working Capital Variation (€mn) 2,172 1,959 466 Average = 1,590 203 1,506 1,125 1,188 -207 Average = (274) -885 -948 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Net cash flow from investments (€mn) 2,285 Cash
Slide 13: A consistent asset rotation policy
… and a consistent asset rotation policy … € 7.1 bn EV in disposals from operating companies since 2010 Total Investments and Disposals 2008-13 (€ mn) Date Item Seller 2014 Aurelis & Streif HOCHTIEF 2014 Seville Subway concession Iridium 2013 Nextgen (Telecomm Business) Leighton 5,905 Investments Di
Slide 14: Successful deleveraging process during the last years
… has permitted to achieve a successful deleveraging process during the last years Net Debt 2009-13 (€mn) Debt to EBITDA Ratios 2009-13 9,089 9,334 7.3x 8,003 6.7x -55% Business Net Debt / EBITDA 5.6x 5.2x 4,952 4,579 4.2x 4,235 3.5x Total Net Debt 2.6x 2.4x (Incl. AHFS) / EBITDA 1.5x 1.4x 2009 2010
Slide 15: Sound financial structure
Sound financial structure Debt Structure as of 31/03/2014 11,669 Net Debt Breakdown by lender type Long Term 75% 26.2% 3,030 Bank Debt 3,201 Short Term 23% 27.3% Bank Debt 11% Bonds and Net Debt -8% 32.0% 3,747 CPs Banks Bondholders Leasing provider Project Financing 4,579 (€ million) Non recourse 1
Slide 16: Debt breakdown by business
Debt breakdown by business (as of 31/03/14) Construction Area of Activity Dragados Iridium HOCHTIEF 90 792 488 688 253 235 -172 104 -262 Recourse Project Finance Net Debt Recourse Project Finance Net Debt Recourse Project Finance Net Debt Industrial Services Environment ACS Corporation 700 3,338 29
Slide 17: Maturity Profile
Maturity Profile Total gross debt HOCHTIEF ACS (Ex HOCHTIEF) Total € 8,083 3,776 mn 69% 2,862 2,379 2,958 11,669 2,201 1,191 1,095 785 772 € 3,586 mn 57 638 1,038 1,188 818 661 728 31% 57 134 ACS (Ex HOCHTIEF) HOCHTIEF 1Q14-1Q15 1Q15-1Q16 1Q16-1Q17 1Q17-1Q18 1Q18-1Q19 Beyond 17
Slide 18: Maturities details
Maturities details Good access to funding and strong relationship with banks support liquidity profile Maturities until Q1-2016 (ACS ex HOCHTIEF) 2,958 Bank lines renewal Includes HOCHTIEF 3,057 acquisition debt of 99% € 449 mn (due Jul/15) 93% 2,956 2,951 2,201 2,840 104% 466 2011 2012 2013 Average
Slide 19: Fixed Income Debt
Fixed Income Debt Increasing access to money markets and capital markets: Net bank debt substituted with fixed income debt like bonds and ECPs Bond Debt/Total Gross Debt (%) * 10% Straight bonds 32% Equity-linked 28% bonds 35% 55% 22% Eurocommercial 14% paper 9% 2011 2012 2013 Sep 2013 Dec 2014 Marc
Slide 20: Conclusions
Conclusions Business profile relying on scale and sustainable profitability Good operating margins with further potential to increase Diversified sales and backlog, by business and geography ACS Resilient operating profitability over recent years, despite the challenging macro environment Debt of Qu
Slide 21: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 21
Slide 22: Shareholding and organizational structure
Shareholding and organizational structure Mr. Florentino Corporación Mr. Cortina & Fluxá Family Free Float Pérez Financiera Alba Mr. Alcocer 12.5% 11.3% 7.6% 5.6% 63% Listed in Madrid Stock Exchange HOCHTIEF’s Ownership (Listed in Frankfurt Stock Exch.) HOCHTIEF’s Qatar Free Float Holdings 30% 11% R
Slide 23: Construction
A best-in-class engineering firm and greenfield project developer: Construction ACS is the largest construction company of the western world focused in developing infrastructures globally Others Civil Works Construction 10% Gen. Building 20% Sales 55% Sales 13 EBITDA 13 Current Backlog 15% €29.6 bn
Slide 24: Main contracts in progress: Railways and Transit
Main contracts in progress: Railways and Transit Ottawa Light Rail Transit, € 700mn Canada London Subway, UK € 500mn New York Subway, US € 1,200mn Línea 2 Metro of Lima, Perú € 3,900mn Thomson Line in Singapore € 240mn Sydney Sub. & Brisbane € 1,150mn highway Hong Kong Tunnels, China € 500mn 24
Slide 25: Main contracts in progress: Highways and Bridges
Main contracts in progress: Highways and Bridges Alaskan Way, Seattle, US € 600mn Bridges in Scotland € 1,000mn Amsterdam – Schipol Highway € 218mn S8 highway, Poland € 330mn Qatar Orbital highway € 1,200mn Sydney highways maintenance € 219mn Perth Airport accesses € 453mn US and Canadian Highways €
Slide 26: Main contracts in progress: Building
Main contracts in progress: Building Tech center, Edmonton, Canada € 230mn Residential complex, India € 182mn Macao Resort, China € 2,100mn Central Terminal LA Airport, US € 230mn Pelli Tower, Seville, Spain € 77mn Sydney Mall, Australia € 296mn Sydney University Bus. Sch., Aust. € 140mn Australian
Slide 27: Industrial Services
A best-in-class engineering firm and greenfield project developer: Industrial Services Industrial Services is a leading support services & EPC contractor with a decisive presence in emerging markets Generation 4% Industrial Services Support Services EPCs Sales 50% 46% Sales 13 EBITDA 13 Current Back
Slide 28: Environment
A best-in-class engineering firm and greenfield project developer: Environment Waste management, treatment, recycling and urban services. A very visible, stable and profitable activity Logistics Urban Services 7% Environment Waste Treatment 30% Sales 63% Sales 13 EBITDA 13 Current Backlog € 1.8 bn €
Slide 29: Main contracts in progress: Industrial & Environmental
Main contracts in progress: Industrial & Environmental Treatment plants in UK and France € 1,200mn Industrial projects in Saudi Arabia € 1,900mn Telecom infrastructures in Australia € 400mn Mining and gas contracts, Australia € 3,000mn Solar plants in South Africa € 1,000mn Transmission lines in Lat
Slide 30: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 30
Slide 31: Cash Flow Statement
Cash Flow Statement Grupo ACS Net Cash Flows 2012 2013 Var. Euro Mi l l i on TOTAL HOT ACS exHOT TOTAL HOT ACS exHOT TOTAL ACS exHOT Cash Flow from Operating Activities 1,506 1,347 159 1,959 1,076 884 +30.1% +454.3% before Working Capital Operating working capital variation (207) (424) 217 (948) (65
Slide 32: 2013 Cash Flow Analysis
2013 Cash Flow Analysis Cash Outflow Cash Inflow Total Group Cash Flow (2013) Net 14% ACS ex HOCHTIEF Financial HOCHTIEF Leighton Expenses * HOCHTIEF Americas HOCHTIEF Europe € 504 mn 86% Dragados 81% Industrial Services Environment Taxes and other adjustments Extraordinary items € 539 mn EBITDA 201
Slide 33: Disposals
Disposals Annual average disposals (2008-13) = € 3.35 bn, Investments = € 3.75 bn. Total Investment 2008-13 (€ mn) Total Disposals 2008-13 (€ mn) Construction Industrial Services Environment Holding Total Construction Industrial Services Environment Holding Total 5,905 5,113 4,598 4,756 4,781 2,969
Slide 34: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 34
Slide 35: Sources of funding
Sources of funding Proven access to financing Well-balanced and diversified sources of funding Breakdown of number of banks by countries • Wide international diversification of Spain Germany 21% 15% banking relationships • The Group has more than 200 lenders UK 7% and strong banking relationships •
Slide 36: Liquidity sources
Liquidity sources Undrawn bank lines plus unrestricted cash and equivalents near to € 8.9 bn • ST Debt mitigated by cash in B/S • Operating subsidiaries benefit from decentralized financing (short term facilities to finance working capital needs, guarantees…) Cash and equivalents Committed Bank Line
Slide 37: Capital and money market instruments
Capital and money market instruments Data as of 30th of June, 2014 Yield at Current Issuer Instrument Maturity Size (mn) Z-spread issuance Yield HOCHTIEF Bond 23/03/17 € 500 5.500% 1.826% 1.500% HOCHTIEF Bond 20/03/20 € 750 3.875% 2.791% 1.991% HOCHTIEF Bond 28/03/19 € 500 2.625% 2.305% 1.687% LEIGH
Slide 38: Net debt linked to Asset held for Sale
Net debt linked to Asset held for Sale (€mn) 3,714 3,023 2,973 2,982 97% Non Recourse 2011 2012 2013 2014 (Q1) Transmission Thermosolar Portugal Maturity of the Debt 78% Plants Lines Mexico from Assets Held for Sale Desalinization 5% Brazil 2% Plants & Others 6% Others 44% 20% Transport 15% Concessi
Slide 39: Off balance sheet debt
Off balance sheet debt Breakdown by Instrument Type Factoring & Securitization Breakdown by Areas of Activity 721 Construction Environment 632 -45% 13% 537 458 399 43% 48% 52% 44% Industrial 2010 2011 2012 2013 2014 (Q1) Services Factoring Securitization (€ million) 39
Slide 40: Total Financial Liabilities Breakdown
Total Financial Liabilities* Breakdown Gross Debt Net Debt 48% 47% 25% Project Finance 44% Capital Markets Leasing 25% Factoring and Securitization 7% Banks Loans 5% 3% 4% -6% ** * Includes B/S debt, debt from assets held for sale and off B/S debt ** Net cash position with lending banks 40
Slide 41: Maturities ACS ex HOCHTIEF
Maturities ACS ex HOCHTIEF ACS (Ex HOCHTIEF) Maturity Profile of Total Gross Debt of the Group total gross debt Syndicated Loans Capital Markets € 1,500 Bilateral Bank Lines & Leasing Non Recourse mn Total 19% € 3,398 2,958 8,083 mn € 2,262 42% 2,201 mn 28% 466 2,316 199 1,038 1,191 € 923 mn 638 389
Slide 42: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 42
Slide 43: Indicative Terms and Conditions
Indicative Terms and Conditions EMTN Programme main features Issuer ACS, Actividades de Construcción y Servicios, S.A. Rating Unrated Guarantor None Currency Any currency agreed between the Issuer, the Arranger and the Dealers Denomination: EUR 100,000 + EUR 100,000 Governing law of the notes Englis
Slide 44: Indicative Terms and Conditions
Indicative Terms and Conditions Indicative Terms and Conditions Issuer ACS, Actividades de Construcción y Servicios, S.A. Rating Unrated Status Unsecured, unsubordinated Currency EUR Coupon Fixed, annually Maturity 5 -7 years Use of proceeds Repayment of existing debt and for general corporate purpo
Slide 45: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 45
Slide 46: Financial Statements
Financial Statements Arne econsmucaon servcos > KEY OPERATING & FINANCIAL AGGREGATES Millions of euros 2012 2013 Change Sales 38,396 38,373 (0.1)% Backlog") 74,588 63,419 (15.0)% Months 24 18 EBITDA 3,088 3,002 (2.8)% Margin 8.0% 7.8% EBIT 1,579 1,746 10.5% Margin 4.1% 4.5% Recurring net profit (2 5
Slide 47: Financial Statements
cross consrucany servaos, > Financial Statements CONSOLIDATED INCOME STATEMENT Millions of euros 2012 % 2013 % Change Net Sales 38,396 100.0% 38,373 100.0% (0.1)% Other income 404 1.1% eal 1.5% 41.4% Total Income 38,800 101.1% 38,943 101.5% 0.4% Operating expenses (27,081) (70.4)% (27,602) (71.9% 21
Slide 48: Financial Statements
Financial Statements acrwnanes oe consauccony senncos > FINANCIAL AND OPERATING DATA MILLION EUROS 2008") 2009!) 201089) 2011 20124) 2013 Turnover 15,275.6 15,387.4 14,328.5 28,471.9 38,396.2 38,372.5 Gross operating profit (EBITDA) 1,382.5 1,429.3 1,431.7 2,317.7 3,088.4 3,001.9 Net operating profi
Slide 49: Financial Statements
Financial Statements acrwnanes oe consauccony senncos > CONSOLIDATED BALANCE SHEET Millions of euros Deo-12 % Dec-t3 % Change Intangible Assets 5,049 12.1% 4,949 12.4% 2.0% Property, Plant and Equipment 3,131 7.5% 2,587 6.5% (17.4% Investments accounted for using the equity method 1,732 4.2% 1,306 3
Slide 50: Appendixes
Appendixes Operating Activities Summary Cash Flow Statement Financial Structure Additional Details Indicative Terms and Conditions Financial Statements Management Profile 50
Slide 51: Grupo ACS Management Committee
Grupo ACS Management Committee Mr. Florentino Pérez Rodríguez, Chairman and CEO, Born in 1947. Civil Engineer. Although Mr. Pérez started his career in the private sector, he held different posts in the Public Administration between 1976 and 1982 (in the Madrid City Council and in 3 Ministries: Indu
Slide 52: Grupo ACS Management Committee
Grupo ACS Management Committee Mr. Ángel García Altozano, Corporate General Manager, Born in 1949. Civil Engineer and MBA. Mr. García Altozano started his professional career in the construction sector. He was General Manager of the Instituto Nacional de Industria (INI) and President of Bankers Trus
Slide 53: Grupo ACS Management Team
cross consrucany servaos, > ACS, ACTIVIDADES DE CONSTRUCCION Y SERVICIOS Mr. Florentino Pérez Rodriguez Chairman and Chief Executive Officer (CEO) Mr. Antonio Garcfa Ferrer Executive Vice Chairman Mr. Angel Garcia Altozano Corporate General Manager Mr. José Luis del Valle Pérez Secretary General Gru
Slide 54: Disclaimer
Disclaimer This document contains forward-looking statements on the intentions, expectations or forecasts of Grupo ACS or its management at the time the document was drawn up and in reference to various matters including, among others, its customer base, its performance, the foreseeable growth of it