Sacyr Sa · BME:SCYR
Sacyr Sa — FY2018 Earnings Presentation
39 slides from Sacyr Sa's earnings presentation, Feb 28, 2019
Slide 1: Results 2018
sacyr.com Results 2018 28 February 2019
Slide 2: Table of Contents
Table of Contents Strategic Plan 2015-2020 Highlights 2018 Operational Development 2018 Performance by Business Area 2018 Annexes
Slide 3: Strategic Plan 2015-2020 (I)
Strategic Plan 2015 – 2020 (I) 2015-2018 (First Term) +75% EBITDA comes from concessional assets 1 Focused on Concessional Business €100M 2014 vs €414 M 2018 Net Recourse Debt -78% 2 Debt Reduction €5,100M 2014 vs €1,138 M 2018 Operating Cash Flow increase 10x aprox. 3 Priority in Cash Management €4
Slide 4: Strategic Plan 2015-2020 (II)
Strategic Plan 2015 – 2020 (II) 2015-2018 (First Term) Total reduction of debt related to our stake in Active management of our stake in 4 Repsol Repsol and elimination of risk linked to fuel price variation Transformation of the construction Adapting the size to market situation. Risk control. 5 ar
Slide 5: Strategic Plan 2015-2020 (III)
Strategic Plan 2015 – 2020 (III) 2015-2018 (First Term) Steady annual increase in operating margin 8 Operating Margin increase (550 pb in this period) €0.103 received by shareholders in 2018 9 Restart of shareholder remuneration (charged to 2017 results) EBITDA EBITDA MARGIN CAGR VAR +23% +550BP Not
Slide 6: Strategic Plan 2015-2020 (IV)
Stategic Plan 2015 – 2020 (IV) 2019-2020 (Second Term) o Strengthening as Concessional Company with relevant Construction, Industrial and Services businesses o Construction business differentiating factor to develop greenfield concession projects o Leader in the Home Markets and selective growth in
Slide 7: Table of Contents
Table of Contents Strategic Plan 2015-2020 Highlights 2018 Operational Development 2018 Performance by Business Area 2018 Annexes
Slide 8: Highlights (I) Operational
Highlights (I) Operational Growth Increase in Revenues +23% Revenue increases in all business areas Focused on business profitability and cash generation Profitabiliy • EBITDA €543 M (+29%) • Group EBITDA margin 2018 14.3% vs 2017 13.7% • EBIT €365 M (+42%) • Operating Cash Flow €412 M (+41%) vs 201
Slide 9: Highlights (II) Corporate
Highlights (II) Corporate Shareholder o Restart of regular dividend policy Remuneration o Cash dividend payed to shareholders, charged to 2017 results = 0.103€/shr Anticipated dividend January 2018 1x48 shares 0.052 €/shr 95% chose shares Dividend July 2018 1x48 shares 0.051 €/shr 85% chose shares R
Slide 10: Highlights (III) Corporate
Highlights (III) Corporate Divestments & • Sale of the entire stake in Itinere for 202M€ (February 2019) Asset Rotation • Completing the sale process of 49% Sacyr´s stake in 7 Chilean assets It is part of the asset rotation strategy of Sacyr Concesiones Monetization of the value of our stake in Reps
Slide 11: Highlights (IV) Panama
Highlights (IV) Panama ✓ Advanced payments received in 2009 by the Consortium Grupos Unidos por el Canal (GUPC), for mobilization and plant installations for the completion of the Third Set of Locks of the Panama Canal project, 100% settled with the Panama Canal Authority ✓ Repayment of advanced pay
Slide 12: Table of Contents
Table of Contents Strategic Plan 2015-2020 Highlights 2018 Operational Development 2018 Performance by Business Area 2018 Annexes
Slide 13: Operational Development (I) Key Figures
Operational Development (I) Key Figures (€ million) Dec 2018 Dec 2017 Var. Revenue 3,796 3,093 +23% International 2,270 1,800 +26% EBITDA 543 423 +29% EBITDA margin 14.3% 13.7% +0.6 pp EBIT 365 257 +42% Net Profit 150 131 +15% Operating Cash Flow 412 292 +41% (€ million) Dec 2018 Dec 2017 Var. Backl
Slide 14: Operational Development (II) Contribution by Activity
Operational Development (II) Contribution by Activity Industrial Industrial Eng. & Industrial Eng.& Infras. Infras. Services Eng& Services Infras. Services Revenue EBITDA Backlog 2018 2018 2018 Concessions Concessions Concessions ✓ 76% of EBITDA comes from concessional assets with low demand risk Pr
Slide 15: Operational Development (III) Backlog: Evolution and International Expansion
Operational Development (III) Backlog: Evolution and International Expansion Evolution 10-year internationalization USA Sacyr has been awarded 4 projects in 71% USA (New Market) 2018 International Home Markets Strengthening in Home Markets due to new 27% 2008 contract awards in Chile, Peru, Colombia
Slide 16: Operational Development (IV) Main Contract Awards 2018
Operational Development (IV) Main Contract Awards 2018 • 4 projects in USA. Construction, enlargement • Through a consortium led by Sacyr • Management of the water cycle in • Design and construction of one water and improvement of several roads and streets Concesiones, the company will carry out the
Slide 17: Operational Development (V) Main Contract Awards 2018
Operational Development (V) Main Contract Awards 2018 • Eng & Infrastructures Several building projects. €65 M. • Concessions Construction of one sector of San • Services Sebastián subway. Total €53 M. • Industrial Enlargement and improvement of “Punta Langosteira”. €47 M. Construction of A6 Renewal
Slide 18: Debt Evolution
Debt Evolution Net Debt Evolution € million 206 -48 -323 954 ## -41 247 4,045 -543 315 -184 3,421 0 Net Debt EBITDA Working Other operating Financial Investment Divestment Repayment of Financing flows Net Debt Dec-17 Capital flows + tax Result advanced payments + forex + other Dec-18 Panama Variatio
Slide 19: Table of Contents
Table of Contents Strategic Plan 2015-2020 Highlights 2018 Operational Development 2018 Performance by Business Area 2018 Annexes
Slide 20: Performance by Business Area: Engineering & Infrastructures
Performance by Business Area Engineering & Infrastructures Main Figures Revenue +40% increase YoY thanks to both international activity (€ million) Dec 2018 Dec 2017 Var. (+46%) and domestic activity (+12%) Revenue 1,713 1,225 +40% 85% International in 2018 Ebitda EBITDA 168 93 +82% +82% increase. M
Slide 21: Engineering & Infrastructures: Main Contract Awards
Performance by Business Area Engineering & Infrastructures Main Contract Awards Country Amount Project USA €318 M 4 construction, enlargement and recovery of roads projects in USA. Backlog Chile €95 M Construction of Alto Hospicio Hospital in Iquique Chile €44 M Construction of Villarrica Hospital €
Slide 22: Performance by Business Area: Concessions
Performance by Business Area Concessions Main Figures Concessions Income (€ million) Dec 2018 Dec 2017 Var. Revenue increase due mainly to: • Commissioning of Antofagasta Hospital (October 2017). Revenue 793 613 +29% • Commissioning of Ruta del Limarí (July 2018). • Positive traffic evolution. Conce
Slide 23: Concessions: Contract Awards
Performance by Business Area Concessions Contract Awards Country Amount Term Project Backlog Through a consortium led by Sacyr Concesiones, the company will carry out the enlargement, construction, upgrading and operation of El Tepual €27,081 M Airport in Puerto Montt. These improvements are expecte
Slide 24: Performance by Business Area: Services
Performance by Business Area Services Main Figures (€ million) Dec 2018 Dec 2017 Var. Revenue and EBITDA • Multiservices: strong increase in revenue by 14% due to the Revenue 1,075 952 13% contribution of important contracts awarded in previous quarters, like the contract for service, operation and
Slide 25: Services: Main Contract Awards
Performance by Business Area Services Main contract awards Country Amount Term Project Backlog Spain €400 M 35-year Water cycle management in Sotogrande, Cádiz €5,899 M Colombia €170 M 8-year Waste collection, street cleaning, green zones maintenance and waste transportation in the Special Service A
Slide 26: Performance by Business Area: Industrial
Performance by Business Area Industrial Main Figures Revenue and EBITDA (€ million) Dec 2018 Dec 2017 Var. EPC Revenue 527 523 +1% • Oil & Gas: completion of Nuevo Mundo Project and the fuel unit at La Pampilla refinery, both in Peru. Sacyr Electricity grids and transmission 49 44 11% Nervión increa
Slide 27: Industrial: Contract Awards
Performance by Business Area Industrial Contract awards Country Amount Project Backlog EPC project consisting in the design and building of one water treatment plant for agricultural purposes in Adelaida. €2,511 M Australia €85 M The facility was designed with the latest water industry technological
Slide 28: Table of Contents
Table of Contents Strategic Plan 2015-2020 Highlights 2018 Operational Development 2018 Performance by Business Area 2018 Annexes
Slide 29: Annexes: Income Statement
Annexes Income Statement INCOME STATEMENT 2018 2017 % Chg 18/17 (Thousands of Euros) Revenue 3,795,717 3,092,606 22.7% Other income 322,391 176,877 82.3% Total operating income 4,118,108 3,269,483 26.0% External and Operating Expenses -3,574,819 -2,846,891 25.6% EBITDA 543,289 422,592 28.6% Amortisa
Slide 30: Annexes: Consolidated Balance Sheet
Annexes Consolidated Balance Sheet BALANCE SHEET DEC. 2018 DEC. 2017 Chg 18/17 (Thousands of Euros) NON CURRENT ASSETS 8,895,503 8,098,032 797,471 Intangible Assets 25,901 17,188 8,713 Concessions Investments 1,353,656 1,370,054 -16,398 Fixed Assets 441,230 387,600 53,631 Financial Assets 3,335,804
Slide 31: Income Statement by Line of Business Dec. 2018
Annexes Income Statement by Line of Business Dec. 2018 CONSOLIDATED INCOME STATEMENT AS OF DECEMBER 2018 Sacyr Eng & Sacyr Sacyr Sacyr Holding & (Thousands of Euros) TOTAL Infrastructures Concessions Services Industrial Adjustments Turnover 1,713,022 793,268 1,075,310 526,722 -312,604 3,795,717 Othe
Slide 32: Income Statement by Line of Business Dec. 2017
Annexes Income Statement by Line of Business Dec. 2017 CONSOLIDATED INCOME STATEMENT AS OF DECEMBER 2017 Sacyr Eng & Sacyr Sacyr Sacyr Holding & (Thousands of Euros) TOTAL Infrastructures Concessions Services Industrial Adjustments Turnover 1,224,984 612,764 951,896 522,851 -219,890 3,092,606 Other
Slide 33: Balance Sheet by Line of Business Dec. 2018
Annexes Balance Sheet by Line of Business Dec. 2018 CONSOLIDATED BALANCE SHEET AS OF DECEMBER 2018 Sacyr Eng & Sacyr Sacyr Sacyr Holding & (Thousands of Euros) TOTAL Infrastructures Concessions Services Industrial adjustments NON CURRENT ASSETS 1,777,267 3,432,587 906,566 192,451 2,586,632 8,895,503
Slide 34: Balance Sheet by Line of Business Dec. 2017
Annexes Balance Sheet by Line of Business Dec. 2017 CONSOLIDATED BALANCE SHEET AS OF DECEMBER 2017 Sacyr Eng & Sacyr Sacyr Sacyr Holding & (Thousands of Euros) TOTAL Infrastructures Concessions Services Industrial adjustments NON CURRENT ASSETS 1,304,452 3,397,139 798,911 188,215 2,409,315 8,098,032
Slide 35: Net Financial Debt breakdown & Maturity Schedule
Annexes Net Financial Debt breakdown & Maturity Schedule € million Dec. 2018 Dec. 2017 Var. Project finance 2,907 2,517 390 Bank borrowings (operating lines) 461 498 -37 Capital Markets (Bonds + ECP) 677 406 271 Net Debt 4,045 3,421 624 Debt 2019 2020 2021 2022 2023 & + Sacyr Concesiones 2,159 -126
Slide 36: Concessions - Traffic
Annexes Concessions - Traffic ACCUMULATED ADT 2018 2017 CHANGE SHADOW TOLL HIGHWAY SPAIN - AUTOVIA DEL NOROESTE 12,596 12,376 1.8% - Ma-15 PALMA-MANACOR 25,515 25,183 1.3% - AS-II OVIEDO-GIJÓN (VIASTUR) 23,357 23,432 -0.3% - AUTURSA CV-35 39,392 39,091 0.8% - ERESMA 8,013 8,194 -2.2% - BARBANZA 13,8
Slide 37: Concessions – Revenue Evolution 2018
Annexes Concessions – Revenue Evolution 2018 REVENUE BREAKDOWN € Thousands 2018 2017 Var. (%) SPAIN 158,399 156,162 1.4% IRELAND 1,286 1,262 2.0% PORTUGAL 877 882 -0.6% CHILE 158,797 135,451 17.2% PERU 29,845 13,818 116.0% COLOMBIA 69,810 44,997 55.1% URUGUAY 3,045 240 1166.7% PARAGUAY 5,474 1,074 4
Slide 38: Alternative Performance Measures
Alternative Performance Measures The Sacyr Group presents its earnings in accordance with International Financial Reporting Standards (IFRS). The Group also provide certain additional financial measurements, known as Alternative Performance Measures (APMs) used by management in decision-making and e
Slide 39: sacyr.com
sacyr.com NOTE The financial information contained in this document is drafted according to the International Financial Reporting Standards. This information Pº de la Castellana, 83-85 has not been audited and therefore may be modified in the future. This document is not a offer, invitation or recom