Acs, Actividades De Construccion Y Servicios Sa · BME:ACS

Acs, Actividades De Construccion Y Servicios Sa — FY2004 Earnings Presentation

37 slides from Acs, Actividades De Construccion Y Servicios Sa's earnings presentation, Feb 28, 2005

  1. Slide 1: 2004 Results

    2004 RESULTS February 28th, 2005

  2. Slide 2: Agenda

    ƒ Year 2004 Summary ƒ 2004 Consolidated Results ƒ 2004 Consolidated Balance Sheet ƒ Business area analysis ƒ Conclusions

  3. Slide 3: 2004 has been a Relevant Year for the ACS Group

    2004 has been a Relevant Year for the ACS Group OPERATING FINANCIAL CORPORATE EFFICIENCY SOUNDNESS LEADERSHIP Higher Strong Cash Merger Profits Generation consolidation VALUE CREATION FOR OUR SHAREHOLDERS 3

  4. Slide 4: Operating Efficiency

    Operating Efficiency Turnover Activity in line with our Budget € 10,961 mn + 2.1% Net Profit Results better than expected € 460 mn + 21.1% Growing Operating Margins Operating Profit (EBIT) € 711 mn + 9.6% Financial Results improvement (€ 96 mn) + 18.6% Higher contribution from Affiliates € 112 mn +

  5. Slide 5: Solid Financials

    Solid Financials Cash Flow from Operating Activities Strong Cash Generation € 1,230 mn + 50.3% Net Investments Increase of Investments € 1,196 mn + 120.3% Paid Dividends Shareholders´ Return € 96.5 mn + 71% Net Debt with recourse Solid Financial Structure € 958 mn D/E = 43% 2003-04 Provision spent M

  6. Slide 6: Corporate Leadership

    Corporate Leadership Nº 1 in SPAIN Industry leadership (1) Nº 3 in EUROPE Nº 8 in the WORLD Advanced Merger Process Net Synergies 2004 € 82 mn Total Backlog Important Commercial Activity € 23,928 mn + 6.2% TRS (2) Sustained Profitability for the Shareholder Year 2004 > 31% 1995-04 > 33% Market Capit

  7. Slide 7: Total Backlog

    Total Backlog 2003 2004 Var. Months (Million Euros) Construction 7,888 8,525 +8.1 % 20 National 6,989 7,932 +13.5 % International 899 593 -34.0 % Industrial Services 3,049 3,415 +12.0 % 12 Services 11,600 11,988 +3.3 % 63 TOTAL 22,537 23,928 +6.2 % 2004 Most significant awards: • Alicante Ring road

  8. Slide 8: Merger Synergies: Beyond Targets

    Merger Synergies: Beyond Targets 11.9 42.2 68.0 85.0 30.8 81.9 112.8 120 120 100 100 80 80 60 60 40 40 20 20 0 0 2003 2004 2005 2006 2003 2004 Budget 2005 Ppto. 2005 Targets Current Production efficiency Overheads Goodwill Tax shield Synergies Net of Taxes 8

  9. Slide 9: ACS evolution in the Stock Market since April 18th, 2002

    ACS evolution in the Stock Market since April 18th, 2002 90% 70% ACS + 62.2% 50% 30% Ibex 35 + 8.8% 10% Dow Jones + 5.7% -10% EuroStoxx50 - 20.3% -30% -50% April 18th 2002 2003 2004 Dec. 31st 9

  10. Slide 10: Agenda

    ƒ Year 2004 Summary ƒ 2004 Consolidated Results ƒ 2004 Consolidated Balance Sheet ƒ Business area analysis ƒ Conclusions

  11. Slide 11: Main Figures: Income Statement

    Main Figures: Income Statement (Million Euros) 2003 PF 2004 Var. Turnover 10,733.6 10,960.7 +2.1 % Construction 5,594.9 5,230.3 -6.5 % Industrial Services 3,072.6 3,490.5 +13.6 % Services 2,153.8 2,329.3 +8.2 % Holding / Adjustments (87.7) (89.4) EBITDA 931.8 977.3 +4.9 % EBIT 649.0 711.0 +9.6 % Att

  12. Slide 12: Main Figures: Consolidated Balance Sheet

    Main Figures: Consolidated Balance Sheet (Million Euros) 2003 PF 2004 Var. Total Net Debt 1,230.6 1,424.0 +15.7 % Net Debt with recourse 914.4 958.1 +4.8 % Project Finance 316.2 465.9 +47.3 % Shareholders Equity 1,796.4 2,103.9 +17.1 % Net Investments (1) 543.0 1,196.4 +120.3 % Market Value of Affil

  13. Slide 13: Income Statement

    Income Statement (Million Euros) 2003 PF 2004 Var. Turnover 10,733.6 10,960.7 +2.1% Operating expenses 9,801.8 9,983.3 EBITDA 931.8 977.3 +4.9% Amortizations/Provisions (282.8) (266.3) EBIT 649.0 711.0 +9.6% Net financial results (118.5) (96.4) Equity method 67.8 111.5 Goodwill amortization (61.0) (

  14. Slide 14: Businesses breakdown

    Businesses breakdown 2004 Turnover EBIT Net Profit 21,1% 11,9% 4,5% 23,3% 43,2% 40,2% 47,3% 15,8% 31,6% 33,5% 27,6% 2003 PF Turnover EBIT Net Profit 20,4% 11,5% 3,6% 19,9% 47,2% 12,8% 44,5% 51,7% 28,4% 32,4% 27,6% Construction Industrial Services Urban Services Concessions Urbis 14

  15. Slide 15: Operating Ratios evolution

    Operating Ratios evolution 10% 35% 8.7% 8.9% 8.1% 8% 31% 6.5% 28.5% 5.8% 6.0% 6% 27% Tax rate Margin 25.4% 4.2% 4% 3.3% 3.5% 23% 2% 19% 16.4% 0% 15% 2002PF 2003PF 2004 EBITDA / Sales EBIT / Sales Net Profit / Sales Tax rate 15

  16. Slide 16: Financial Results

    Financial Results (Million Euros) 2003PF 2004 Var. Interests paid (1) (154.8) (153.8) Interests received 66.2 68.7 Financial provisions (5.0) (1.2) Net financial result (93.6) (86.3) 7.8% Net exchange differences (24.9) (10.1) Net financial result with exchange differences (118.5) (96.4) 18.6% (1) T

  17. Slide 17: EPS evolution

    EPS evolution 30% 1.50 € 1.30 € 25% 23.6% 21.6% 22.0% 1.07 € 20% 1.00 € 0.94 € 15.9% 16.5%(1) 15% 14.4% 0.78 € 0.63 € 0.55 € 10% 0.50 € 5% 0% 0.00 € 1999 2000 2001 2002 2003PF 2004 EPS Growth EPS (1) Growth calculated over 2002 Pf EPS, which reached 0.92 €. The 2003 Pf EPS figure does not include th

  18. Slide 18: ACS Group Headcount

    ACS Group Headcount Dec-03 Dec-04 Var. Fixed Var. Construction 19,051 17,263 -9.4 % 6,920 -5.5 % Industrial Services 27,145 29,183 +7.5 % 8,011 +5.1 % Services and Concessions 53,004 64,632 +21.9 % 5,491 +4.4 % Holding / Adjustments 134 80 -40.3 % 80 -18.4 % TOTAL 99,334 111,158 +11.9 % 20,502 +0.8

  19. Slide 19: Agenda

    ƒ Year 2004 Summary ƒ 2004 Consolidated Results ƒ 2004 Consolidated Balance Sheet ƒ Business area analysis ƒ Conclusions

  20. Slide 20: Consolidated Balance Sheet

    Consolidated Balance Sheet (Million Euros) 2003 2004 Var. Fixed Assets 4,446.8 5,384.7 +21.1% Fixed assets 3,406.9 4,157.9 +22.0% Tangible 1,707.4 2,056.6 Intangible & Others 307.0 377.9 Financial 1,392.5 1,723.5 Goodwill 1,039.9 1,226.8 +18.0% Working capital (658.8) (1,130.6) +71.6% Days of sale (

  21. Slide 21: 2004 Investments breakdown

    2004 Investments breakdown Fixed assets Concession Total (Million Euros) Investments Projects Investment Construction 64.5 29.5 94.0 Industrial Services 59.9 178.1 237.9 Services and Concessions 181.5 204.4 386.0 Holding 478.5 478.5 TOTAL 784.4 412.0 1,196.4 Main Investments: • Construction: equipme

  22. Slide 22: Net Debt evolution

    Net Debt evolution ND / EBITDA 1.45x 1.800 100% 1.500 1.424 80% % over Shareholders equity 1.200 65% 64% Million Euros 60% 51% 48% 43% 900 35% 40% 600 22% 35% 20% 300 20% 7% 0 0% 2000 2001 2002 2003 2004 Net Debt with recourse Projects Debt Net Debt with recourse / (Shareholders Equity +Minority int

  23. Slide 23: Cash Flow Statement

    Cash Flow Statement (Million Euros) 2003 PF 2004 Var. Cash Flow from operations 743.9 764.7 Working capital variations 74.6 465.2 Cash Flow from operating activities 818.5 1,229.9 +50.3 % Investments (657.5) (1,248.6) Disposal of assets 114.5 52.2 Net Investments (543.0) (1,196.4) +120.3 % Bank loan

  24. Slide 24: Agenda

    ƒ Year 2004 Summary ƒ 2004 Consolidated Results ƒ 2004 Consolidated Balance Sheet ƒ Business area analysis ƒ Conclusions

  25. Slide 25: Construction: Results

    Construction: Results (Million Euros) 2003 PF 2004 Var. Turnover 5,594.9 5,230.3 -6.5% EBITDA 424.3 389.4 -8.2% Margin 7.6% 7.4% EBIT 330.9 318.9 -3.6% Margin 5.9% 6.1% Ordinary Profit 341.3 337.3 -1.2% Margin 6.1% 6.4% Net Profit 214.8 217.3 +1.2% Margin 3.8% 4.2% Effective Tax rate 32.4% 31.2% 25

  26. Slide 26: Construction: Production breakdown

    Construction: Production breakdown 2003 PF 2004 Var. (Million Euros) Domestic 5,144.4 4,745.9 -7.7 % Civil Works 2,940.6 2,664.5 -9.4 % Building 2,203.8 2,081.4 -5.6 % International 450.5 484.4 +7.5 % TOTAL 5,594.9 5,230.3 -6.5 % 2003 Sales 2004 Sales 8% 9% 53% 51% 39% 40% 26

  27. Slide 27: Industrial Services: Results

    Industrial Services: Results (Million Euros) 2003 PF 2004 Var. Turnover 3,072.6 3,490.5 +13.6% EBITDA 278.0 295.9 +6.5% Margin 9.0% 8.5% EBIT 227.3 246.7 +8.5% Margin 7.4% 7.1% Ordinary Profit 199.1 226.6 +13.8% Margin 6.5% 6.5% Net Profit 133.3 149.0 +11.8% Margin 4.3% 4.3% Effective Tax rate 29.1%

  28. Slide 28: Industrial Services: Production breakdown

    Industrial Services: Production breakdown (Million Euros) 2003 PF 2004 Var. Networks 637.9 722.2 +13.2 % Specialized Products 1,139.2 1,170.2 +2.7 % Integrated Projects 659.3 954.8 +44.8 % Control Systems 636.2 643.3 +1.1 % TOTAL 3,072.6 3,490.5 +13.6 % 2003 Sales 2004 Sales 21% 18% 21% 21% 21% 27%

  29. Slide 29: Services and Concessions: Services Results

    Services and Concessions: Services Results 2003 PF 2004 Var. (Million Euros) Turnover 2,153.8 2,329.3 +8.2% EBITDA 274.8 314.9 +14.6% Margin 12.8% 13.5% EBIT 142.7 171.5 +20.2% Margin 6.6% 7.4% Ordinary Profit 89.8 118.3 +31.7% Margin 4.2% 5.1% Net Profit 61.8 85.6 +38.4% Margin 2.9% 3.7% Effective

  30. Slide 30: Services and Concessions: Services production breakdown

    Services and Concessions: Services production breakdown 2003 PF 2004 Var. (Million Euros) Environment 982.3 1.000.4 +1.8 % Ports & Logistics 552.1 606.3 +9.8 % Passenger Transportation 157.4 178.1 +13.1 % Facility Management 462.0 544.5 +17.9 % TOTAL 2,153.8 2,329.3 +8.2 % 2003 Sales 2004 Sales 21%

  31. Slide 31: Services and Concessions: Concessions Results

    Services and Concessions: Concessions Results (Million Euros) 2003 PF 2004 EBIT (5.7) (2.0) Equity method 44.8 75.8 Abertis 39.0 70.7 Others 6.0 5.1 Extraordinary Results 10.4 (2.2) Net Profit 55.3 64.4 31

  32. Slide 32: Services and Concessions: List of concessions

    Services and Concessions: List of concessions Expiration ACS Concession Stake Country Activity State Km Date Contribution* 1 A8 - Bidelan Guipuzkoako Autobideak 50.0% E.M.(1) Spain Highways Operation 78 2013 3 2 Autopista Central Gallega (Santiago Orense) 13.3% N.C. (2) Spain Highways Constr./Operat

  33. Slide 33: Agenda

    ƒ Year 2004 Summary ƒ 2004 Consolidated Results ƒ 2004 Consolidated Balance Sheet ƒ Business area analysis ƒ Conclusions

  34. Slide 34: 2004 Results: Consolidating leadership

    2004 Results: Consolidating leadership Good operating performance EBIT > € 710 mn +10% Ordinary Profit > € 645 mn + 20% PBT > € 623 mn + 25% EPS > € 1.3 mn + 22% Net Debt Net Investment Cash Flow < € 1,425 mn ~ € 1,200 mn > € 1,200 mn 34

  35. Slide 35: Solid Sector Demands

    Solid Sector Demands Civil Works • Investments PGE’05 +5% • PEIT 2005-20: € 241 bn • Regional Governments: Public-private finance Construction Building Visibility • Public: Health and Education • Commercial: more activity • Residential: sustained demand Energy Investments • New infrastructures • Sus

  36. Slide 36: Excellent 2005 Prospects

    Excellent 2005 Prospects TURNOVER + 5 - 10% Construction + 5 - 8% Industrial Services + 8 - 12% Services and Concessions + 5 - 10% EBIT + 9 - 15% NET PROFIT + 15 - 20 % INVESTMENTS ~ € 1,000 mn 36

  37. Slide 37: Actividades de Construccion y Servicios

    ACTIVIDADES DE CONSTRUCCION Y SERVICIOS &

ACS, Actividades de Construcción y Servicios — FY2004 Earnings Presentation on 6ix