Acs, Actividades De Construccion Y Servicios Sa · BME:ACS
Acs, Actividades De Construccion Y Servicios Sa — Grupo ACS — FY2008 Earnings Presentation
43 slides from Acs, Actividades De Construccion Y Servicios Sa's earnings presentation, Feb 27, 2009
Slide 1: Results Presentation
RESULTS ‘ PRESENTATION February 27th, 2009 1
Slide 2: 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
Slide 3: Executive Summary, Results 2008, Financial Situation, Prospects 2009, Conclusions
Executive Summary Results 2008 Financial Situation Prospects 2009 Conclusions 3
Slide 4: Executive Summary 2008: Relevant facts of the period
Executive Summary 2008 Relevant facts of the period Net Profit growth € 1.805 million over our prospects +16.4% Agreement € 7,591 million for the sale of Union Fenosa Chile Highways & Concessions disposal DCA airports Cancellation of treasury Stock 34.23 million International expansion through North
Slide 5: Executive Summary 2008: Good operating performance
Executive Summary 2008 Good operating performance Year 2008 Δ Revenues € 16,010 mn +4.3 % EBITDA € 1,480 mn +7.2 % Net Profit € 1,805 mn +16.4 % EPS 5.43 € +20.5 % Backlog € 34,106 mn +5.5 % Number of Employees 141,002 +6.8 % 5
Slide 6: Executive Summary 2008: Cash flow generation capacity
Executive Summary 2008 Cash flow generation capacity Cash Flow from Disposals** operating activities* € 1,060 mn € 2,517 mn Cash Flow generated by Grupo ACS € 3,577 mn ∆ Project finance (debt) € 182 mn € 1,274 mn € 848 mn Others*** Shareholders € 2,121 mn Investments * Including UNF dividends ** 200
Slide 7: Executive Summary 2008: Maintaining a solid financial structure
Executive Summary 2008 Maintaining a solid financial structure • Cash flow from Net debt operations € 7.3 bn reduction • Unión Fenosa sale • Concessions disposals € 3.2 bn € 16.6 bn € 9.3 bn Strong cash position > € 4.4 bn € 6.1 bn Net Debt / EBITDA + Dividends = 3.59x Net Debt Debt Net Debt Sale of
Slide 8: Executive Summary, Results 2008, Financial Situation
Executive Summary Results 2008 Financial Situation Prospects 2009 Conclusions 8
Slide 9: Consolidated Results 2008: Key figures
Consolidated Results 2008 Key figures Euro Millions 2007 2008 Var Turnover 15,345 16,010 +4.3 % EBITDA 1,380 1,480 +7.2 % EBIT 1,057 1,097 +3.8 % Ordinary Net Profit* 1,010 1,127 +11.6 % Net Profit 1,551 1,805 +16.4 % EPS 4.51 € 5.43 € +20.5 % EBITDA Margin 9.0% 9.2% EBIT Margin 6.9% 6.9% Ordinary N
Slide 10: Consolidated Results 2008: Breakdown by area of activity
Consolidated Results 2008 Breakdown by area of activity Sales EBIT Ordinary Net Profit (Domestic 78% - International 22%) 19% 25% 22% 25% 41% 36% 9% 40% 13% 28% 42% Construction Industrial Services Environment & Logistics Concessions* Holding and others** * Including Abertis contribution ** Includin
Slide 11: Consolidated Results 2008: Sales evolution analysis
Consolidated Results 2008 Sales evolution analysis +4.3% +39% -2.4% + € 665 mn € -307mn • Slowdown in € +972mn Construction activity Domestic 78.3% € 16,010 • Construction +383 mn mn Domestic • Concessions -2 mn 83.7% • Environment & € 15,345 mn Logistics +81 mn International International • Industr
Slide 12: Consolidated Results 2008: EBITDA evolution analysis
Consolidated Results 2008 EBITDA evolution analysis +21.1% Adjustments € (1) mn + € 100 mn +7.2% € 103 mn 39% +8% -10% • Outstanding € 31 mn evolution of € 1,480 27% 34% n.a. energy-related activities € (55) mn • International mn • Sustained growth in activity growth € 22 mn all activities 1% 27% €
Slide 13: Consolidated Results 2008: Net Profit evolution analysis
Consolidated Results 2008 Net Profit evolution analysis € mn 2007 2008 Var. Construction Net Profit 310 275 -11.4% Concessions Ordinary Net Profit* 99 106 +6.8% Environment and Logistics Net Profit 132 145 +9.9% Industrial Services & Energy Net Profit 265 317 +19.5% Holding and Others** 204 284 +39.
Slide 14: Construction: Main figures
Areas of Activity Construction: Main figures Construction January - December Million Euro 2007 2008 Var. 08/07 Turnover 7,353 6,625 -9.9% EBITDA 549 494 -10.0% Margin 7.5% 7.5% EBIT 460 411 -10.7% Margin 6.3% 6.2% Net Profit 310 275 -11.4% Margin 4.2% 4.2% Backlog 12,011 11,023 -8.2% Months 19 20 14
Slide 15: Construction
Areas of Activity Construction Year 2008 Sales Δ Backlog Δ Construction 6,625 -9.9% 11,023 -8.2% Civil Works 4,117 -6.4% 8,525 +6.3% Non Residential Building 1,487 -13.8% 1,806 -19.3% Residential Building 1,021 -16.9% 692 -60.4% International 12% 816 +88.6% 23% 2,546 +13.5% Sales Backlog 15% 6% 17%
Slide 16: Construction: Main contracts awarded
Areas of Activity Construction: Main contracts awarded Project Amount (€ mn) Type of Proyect Project for the Montreal highway A30 (Canada) 438 Civil Works - Roads Project for the construction of the Eix Diagonal highway in Barcelona 357 Civil Works - Roads Civil Works - Hydraulic or Building of the
Slide 17: Environment & Logistics: Main figures
Areas of Activity Environment & Logistics: Main figures Environment & Logistics January - December Million Euro 2007 2008 Var. 08/07 Turnover 2,835 3,148 +11.1% EBITDA 381 412 +8.0% Margin 13.5% 13.1% EBIT 233 249 +7.1% Margin 8.2% 7.9% Net Profit 132 145 +9.9% Margin 4.6% 4.6% Backlog 14,458 16,839
Slide 18: Environment & Logistics
Areas of Activity Environment & Logistics Year 2008 Sales Δ Backlog Δ Environment & Logistics 3,148 +11.1% 16,839 +16.5% Environmental Services 1,473 +11% 9,310 +16.0% Ports and Logistics 734 +10% 6,427 +19.6% Facility Management 941 +12% 1,102 +4.5% International 13% 421 +23.8% 28% 4,734 +16.3% Sal
Slide 19: Environment & Logistics: Main contracts awarded
Areas of Activity Environment & Logistics: Main contracts awarded Contract Amount (€ mn) Company Years Solid Urban Waste treatment plant for the Island of Guadalupe (France) 589 Urbaser 20 Solid Urban Waste treatment plant for the city of Paris (France) 406 Urbaser 12 Contract for the management of
Slide 20: Industrial Services & Energy: Main figures
Areas of Activity Industrial Services & Energy: Main figures Industrial Services & Energy January - December Million Euro 2007 2008 Var. 08/07 Turnover 5,489 6,477 +18.0% EBITDA 488 591 +21.1% Margin 8.9% 9.1% EBIT 413 472 +14.4% Margin 7.5% 7.3% Net Profit 265 317 +19.5% Margin 4.8% 4.9% Backlog 5,
Slide 21: Industrial Services & Energy
Areas of Activity Industrial Services & Energy Year 2008 Sales* Δ Backlog Δ Industrial Services & Energy 6,477 +18% 6,244 +6.7% Support Services 4,432 +10.4% 4,027 +3.9% Networks 957 +6.3% Specialized Products 2,365 +16.4% Control Systems 1,110 +2.5% Energy Projects 2,126 +29.2% 2,217 +12.1% EPC Pro
Slide 22: Industrial Services & Energy: Main contracts awarded
Areas of Activity Industrial Services & Energy: Main contracts awarded Project Amount (€ mn) Type of Proyect Construction of 1,041 kilometers of transmission lines in Brazil 188 Energy Projects Construction of the thermosolar plant Manchasol I (Spain) 140 Energy Projects Development of phases 6 and
Slide 23: Affiliated listed companies
Areas of Activity Affiliated listed companies Euro Million 2007 2008 Var Partic ipac ión 142.2 130.4 -8.3 % 25,8% 30.8 44.2 +43.6 % 30.0% 96.7 111.0 +14.8 % 12,6% Income from Associates 269.7 285.6 +5.9 % Financial expenses (313.2) (383.1) Corporate tax 101.2 114.9 Attributable Net Profit 57.7 17.4
Slide 24: Executive Summary, Results 2008, Financial Situation
Executive Summary Results 2008 Financial Situation Prospects 2009 Conclusions 24
Slide 25: Consolidated Balance Sheet December 31st, 2008
Consolidated Balance Sheet December 31st, 2008 Main Figures Million Euros dec-07 dec-07 comp. dic-08 Tangible Fixed Assets 18,475 4,248 5,208 LT financial investments 10,300 8,414 7,082 Other non-current assets 5,846 1,787 2,330 Total fixed assets 34,621 109% 14,448 75% 14,619 70% Working Capital (3
Slide 26: Net Debt evolution in 2008
Net Debt evolution in 2008 Debt Unión Fenosa reduction €5.8 bn Net Debt 07 € 7.3 bn Non recourse debt € 0.2 bn €2.4 bn reclassification 07 € 16.6 bn € 1.3 bn €1.1 bn € 0.5 bn € 9.3 bn €8.4 bn Net Debt Liabilities Comparable Cash Flow Investments - Dividends + Others Net Debt from assets Net Debt fro
Slide 27: Pro-forma net debt after Unión Fenosa transaction completion
Pro-forma net debt after Unión Fenosa transaction completion Total Net Debt Pro-forma Net Debt € 9,355 mn € 6,152 mn € 90 mn Dividends € 2,260 mn Net Debt / Net Debt with EBITDA 08 + div = 3.59x Sale of the recourse remaining € 2,933 mn € 5,825 mn 35.3% € 270 mn Net Cash € 452 mn Non recourse Net De
Slide 28: Net Debt situation
Net Debt situation Euro Millions Activities Projects* SPV TOTAL Net Debt with recourse 2,933 - - 2,933 Non Recourse net Debt 321 2,935 3,166 6,422 Total Net Debt 3,254 2,935 3,166 9,355 Sale of Unión Fenosa (3,203) - - (3,203) Pro-forma Net Debt 51 2,935 3,166 6,152 EBITDA 08 + Dividends received 1,
Slide 29: Working Capital Variation in 2008
Working Capital Variation in 2008 Working capital variation Debit balance increase 414 mn Working capital from Adjusted non operating Working capital from Reclassification 31/12/07 of UNF 31/12/07 activities operating activities 31/12/08 Credit Balance Net cancellation of advanced € 2,295 payments f
Slide 30: Working capital evolution
Working capital evolution Historical trends Working capital evolution* (figures in credit balances, mn€) Debit balance increase of 3,000 2002 2003 2004 2005 2006 2007 2008 €414 mn 2,709 2,500 2,497 2,295 2,000 1,872 1,500 1,305 1,000 584 659 500 246 0 1 2 3 4 5 6 7 8 -0 -0 -0 -0 -0 -0 -0 -0 c c c c
Slide 31: Capex breakdown in 2008
Capex breakdown in 2008 Gross Euro Million Disposals Net Investment Investment Construction 101 -20 81 Concessions 185 -1,011 * -826 Environment & Logistics 351 -68 283 Industrial Services 1,158 -23 1,135 Holding & others 1,174 -1,676 -502 TOTAL 2,969 -2,798 171 Gross Investments 2008 3% 6% 12% 40%
Slide 32: Executive Summary, Results 2008, Financial Situation
Executive Summary Results 2008 Financial Situation Prospects 2009 Conclusions 32
Slide 33: Construction: International Expansion
Construction: International Expansion Construction International activity Civil Works in Spain • Only through Civil Works • Investment commitment from the Central • Growth opportunities in US, Administration Western Europe and Chile • Cost Efficiency to maintain high margins Civil • Working capital
Slide 34: Concessions: World Leadership
Concessions: World Leadership Concessions Opportunities Areas of activity • Pre qualified for projects in • Specialized in the development of 2009 with more than € 1,800 greenfield projects 15 years million of investment world • Transportation infrastructures worldwide leader • Mature concessions po
Slide 35: Environment & Logistics: Visibility and Recurrence
Environment & Logistics: Visibility and Recurrence Environment & Logistics International Expansion Growth in Spain • Development of treatment • Integral offer to reduce costs and increase plants in France and US efficiency through outsourcing • Technology as a • Grupo ACS management of client risk d
Slide 36: Industrial Services & Energy: Growth
Industrial Services & Energy: Growth Industrial Services & Energy Investments Visibility and Recurrence • Investments and operation of • Maintenance business generated as a wind parks: 1,076 MW under consequence of the EPC investments operation and 2,000 MW • Increase of the value added offering for
Slide 37: Executive Summary, Results 2008, Financial Situation
Executive Summary Results 2008 Financial Situation Prospects 2009 Conclusions 37
Slide 38: 2004-2008 Track Record: Economical value creation
2004-2008 Track Record: Economical value creation Sales EBITDA € Million € Million 1,600 18,000 CAGR 03-08> 12% 16,010 CAGR 03-08> 13% 1,380 1,480 15,345 1,270 15,000 14,067 1,200 1,096 12,114 981 12,000 10,818 8,825 795 9,000 800 6,000 400 3,000 0 0 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006
Slide 39: 2004-2008 Track Record: Cash Flow Generation
2004-2008 Track Record: Cash Flow Generation Cash flow ∆ Corporate Disposals* from operations Debt € 5.2 bn € 10.8 bn € 1.9 bn Total Cash Flow generated 2004-2008 € 17.9 bn Strong Cash Flow generation capacity * Including UNF 39
Slide 40: 2004-2008 Track Record: Investments
2004-2008 Track Record: Investments ∆ Project Total Cash Flow generated 2004-2008 finance debt € 17.9 bn € 2.9 bn € 1.4 bn € 1.1 bn € 15.4 bn Dividends Treasury Stock Investments € 18.4 bn Combination of an attractive € 0.1 bn return to shareholders with Others investments for the future 40
Slide 41: 2004-2008 Track Record: Creation of value
2004-2008 Track Record: Creation of value ACS 249 Construction 145 IBEX 35 117 100 2004 2005 2006 2007 2008 IBEX ACS Construction Construcción Stock exchange evolution of Grupo ACS since Dragados merger: +149% Total annual return (incl. Dividends) > 25% 41
Slide 42: Conclusions: Growth and Profitability
Conclusions Value creation track record Coherent and adequate strategy Growth and Good opportunities in a Profitability difficult environment Solid financial structure 42
Slide 43: Dow Jones Sustainability Indexes
ACTIVIDADES DE CONSTRUCCION Y SERVICIOS & Dow Jones < Sustainability Indexes Bamber 200772