Obrascon Huarte Lain Sa · BME:OHLA

Obrascon Huarte Lain Sa — OHL — FY2007 Earnings Presentation

33 slides from Obrascon Huarte Lain Sa's earnings presentation, Feb 29, 2008

  1. Slide 1: 2007 Results Presentation

    2007 Results Presentation Madrid, February 29th of 2008

  2. Slide 2: Disclaimer

    Disclaimer Any declaration made in this presentation that may differ from previous past figures made in reference to, but not limited to; the operational development, business strategies and future objectives, are to be interpreted only as future estimations, and as such, they imply known and unknow

  3. Slide 3: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 3

  4. Slide 4: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 4

  5. Slide 5: Economic Environment: Spanish Economy

    Economic Environment Spanish Economy Datos Macroeconómicos (*) Macroeconomic Figures 2008P 2007 2006 GDP Growth (1) 2,6% 3,8% 3,9% CPI (1) 3,4% 4,3% 2,7% Construction GFCF (2) 3,8% 5,1% 6,0% Interest Rates (2) 4,0% 4,0% 3,5% Public Surplus (2) 1,1% 2,2% 1,4% (1) Source: Average of International Bodi

  6. Slide 6: Spanish Construction Sector – 2007 and Future

    Economic Environment Spanish Construction Sector – 2007 and Future ƒ Estimated growth rate of 4% ƒ Civil Engineering has been the segment that has grown the most in 2007 2007 ƒ The main indexes of the activity level of 2007 have shown variations Figures of: ƒ Cement consumption: +0,3% ƒ Construction

  7. Slide 7: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 7

  8. Slide 8: Profit & Loss Account – Main Figures

    2007 Results Profit & Loss Account – Main Figures (€ mn) 2007 % 2006 % % Var. Sales 3.764,4 100,0 3.278,2 100,0 +14,8% EBITDA 542,9 14,4 489,2 14,9 +11,0% EBIT 373,7 9,9 326,8 10,0 +14,4% Net Profit 140,5 3,7 105,1 3,2 +33,7% Double digit growth at all levels of P&L Account 8

  9. Slide 9: Sales

    2007 Results Sales (€ mn) 2007 % 2006 % % Var. ■ Domestic Constr. 1.973,9 52 1.835,2 56 +7,6% ■ International Constr. 1.162,2 31 918,2 28 +26,6% ■ Concessions 435,5 12 333,4 10 +30,6% ■ Environment 116,8 3 84,0 3 +39,0% ■ Developments 76,0 2 107,4 3 -29,2% TOTAL 3.764,4 100 3.278,2 100 +14,8% Growth

  10. Slide 10: EBITDA

    2007 Results EBITDA (€ mn) 2007 % 2006 % % Var. ■ Domestic Constr. 118,0 22 133,8 27 -11,8% ■ International Constr. 86,9 16 69,7 14 +24,7% ■ Concessions 317,0 58 253,5 52 +25,0% ■ Environment 13,0 2 17,9 4 -27,4% ■ Developments 8,0 2 14,3 3 -44,1% TOTAL 542,9 100 489,2 100 +11,0% International Const

  11. Slide 11: Diversified Group

    2007 Results Diversified Group Sales Workforce 5% 12% 12% 28% 52% 21% 31% 39% Fixed Assets Orderbook EBITDA 14% 3%5% 7% 9% 4% 4% 22% 58% 16% 78% 80% „ Domestic Construction „ International Construction „ Concessions „ Other Domestic Construction represents only 22% of the EBITDA, 9% of the Orderbook

  12. Slide 12: International Group

    2007 Results International Group Sales Workforce 45% 41% 55% 59% Fixed Assets Orderbook EBITDA 27% 20% 35% 65% 73% 80% „ International „ Domestic The activity in Spain represents only 20% of the EBITDA, 27% of the Orderbook and 35% of the Fixed Assets 12

  13. Slide 13: Balance Sheet

    2007 Results Balance Sheet (€ mn) 2007 2006 Net Fixed Assets 3.945,3 3.242,6 Other non-current assets (goodwill and deferred-tax assets) 396,5 448,2 NON-CURRENT ASSETS 4.341,8 3.690,8 Debtors 1.746,3 1.449,2 Cash & Equivalents 831,5 576,6 Other current assets (stocks and other) 163,9 154,2 CURRENT A

  14. Slide 14: Debt

    2007 Results Debt (€ mn) 2007 % 2006 % Gross Debt: Short Term 504,6 16% 278,3 12% Long Term 2.587,3 84% 1.998,2 88% Total Gross Debt 3.091,9 100% 2.276,5 100% Recourse 948,2 31% 395,6 17% Non-recourse 2.143,7 69% 1.880,9 83% Net Debt: Recourse 330,0 15% 93,8 5% Non-recourse 1.930,4 85% 1.606,1 95% T

  15. Slide 15: Long & Short Term Orderbook Performance

    2007 Results Long & Short Term Orderbook Performance (€ mn) 38.058 +19,7% 31.783 16,9 months of 5.302 total sales 13,9% +3,7% 5.113 16,1% 92% corresponding to 32.756 Infrastructure +22,8% Concessions 86,1% 26.670 83,9% 2007 2006 „ Short Term „ Long Term 15

  16. Slide 16: Reduced exposure to the market's main concerns

    2007 Results Reduced exposure to the market’s main concerns ƒ Real Estate: ƒ No Real Estate activity ƒ Domestic residential building represents less than 2% of EBITDA ƒ Financial: ƒ One of the best finantially positioned companies in the sector: ƒ One of the less leveraged ƒ With more debt maturing

  17. Slide 17: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 17

  18. Slide 18: Business Line Structure

    Activities Business Line Structure Domestic International Concessions Environment Developments Construction Construction 18

  19. Slide 19: Domestic Construction

    Activities Domestic Construction ƒ Activity concentrated in Civil Engineering. Very limited Main Figures presence in Residential Building (€ mn) 2007 2006 % Var. ƒ Lower EBITDA margin in 2007, due to concentration of works in the first stages that do not apply the completion Sales 1.973,9 1.835,2 +7

  20. Slide 20: International Construction

    Activities International Construction ƒ Continued 25% annual growth of the activity both at Sales and Main Figures EBITDA levels (€ mn) 2007 2006 % Var. ƒ Orderbook representing 16 months of sales Sales 1.162,2 918,2 +26,6% EBITDA 86,9 69,7 +24,7% ƒ Future: Strong growth both organic (portfolio of b

  21. Slide 21: Concessions

    Activities Concessions ƒ Important growth both in Sales, +31%, and EBITDA, +25%, and in number of concessions (incorporation of 1 new highway and 1 Main Figures new railway concession) (€ mn) 2007 2006 % Var. ƒ Portfolio of 19 main concessions as of December 2007: ƒ 14 in operation and 5 under const

  22. Slide 22: Concessions – Main Concessions

    Activities Concessions – Main Concessions Toll Roads Value of Total OHL Traffic Volume (€ mn) Country Status Km % OHL Investment Investment (Vh./day) Aecsa Argentina Operation 60 70,00% 93 78,0 216.100 Autovias Brazil Operation 316 60,00% 351 79.400 Centrovias Brazil Operation 218 60,00% 294 56.800

  23. Slide 23: Concessions: Traffic and Sales

    Activities Concessions Traffic (number of vehicles) 2007 Var. 07 / 06 2007 Sales Argentina Aecsa (1) 216.067 +6,5% Chile 2% 10% Mexico Autovias (1) 79.362 +53,2% Spain 27% Centrovias (1) 56.780 +8,4% 7% Intervias (1) 136.189 +5,6% Vianorte (1) 74.523 +5,8% A. Sol (1) 65.651 +7,6% A. Libertadores (1)

  24. Slide 24: Environment

    Activities Environment ƒ Inima: world leader as desalination and purification plants concession operator (own technology applied) Main Figures ƒ Portfolio of main concessions (book value = € 112 mn): (€ mn) 2007 2006 % Var. Project country Stage %OHL m3/day Desalination Plants Sales 116,8 84,0 +39,0

  25. Slide 25: Developments

    Activities Developments ƒ Lower 2007 figures as compared to 2006 due to less Main Figures sale of land in Mayakoba (according to schedule) (€ mn) 2007 2006 % Var. Mayakobá project ƒ In operation: Fairmont and Rosewood hotels, and “El Sales 76,0 107,4 -29,2% Camaleón” golf course ƒ Under construction

  26. Slide 26: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 26

  27. Slide 27: Strategy

    Strategy Continuity of the strategy announced in May of 2002 DOMESTIC ƒ Continue taking advantage of the situation for Civil Engineering CONSTRUCTION ƒ Selective Building: ƒ Growth of Non-residential ƒ Reduction of Residential INTERNATIONAL ƒ Strong commitment with prudent criteria: CONSTRUCTION ƒ M

  28. Slide 28: Summary

    Summary: X Economic Environment X 2007 Results X Activities X Strategy X 2008 Estimates 28

  29. Slide 29: 2008 Estimates: Main Highlights I

    2008 Estimates Main Highlights - I - International Construction ƒ Forecasted growth in Sales and EBITDA higher than that achieved in the previous three years: Sales EBITDA CAGR 2004-2007 +33,5% +36,1% ƒ New acquisition in the USA ƒ Important improvement in the orderbook due to two important awards i

  30. Slide 30: 2008 Estimates: Main Highlights II

    2008 Estimates Main Highlights - II - Concessions ƒ Strong growth of Sales and EBITDA (aproximatelly 25%), though slightly lower than the one reached in the past three years: Sales EBITDA CAGR 2004-2007 +38,7% +51,4% ƒ Incorporation, among others, of 5 big federal highways in Brazil with operation s

  31. Slide 31: 2008 Estimates: Main Highlights III

    2008 Estimates Main Highlights - III - Domestic Construction ƒ Moderate growth of Sales and EBITDA Environment ƒ Moderate growth of Sales and improvement of EBITDA margin Industrial ƒ Creation of a new division: OHL Industrial 31

  32. Slide 32: Estimated Growth

    2008 Estimates Estimated Growth CAGR Growth 2008 2004-2007 2008 Prevision (%) (%) (€ mn) Sales +19,2% +20% 4.500 EBITDA +29,8% +30% 700 Net Profit +51,1% +30% 180 32

  33. Slide 33: 2007 Results Presentation

    2007 Results Presentation Madrid, February 29th of 2008 33

OHL — FY2007 Earnings Presentation on 6ix