2009 Annual Shareholders Meeting. Madrid, May 18, 2010

Transcription

1 2009 Annual Shareholders Meeting Madrid, May 18,

2 Summary I. Economic Environment II. OHL s Position III.2009 Results IV.OHL s Future V. Resolutions Proposal 2

3 Economic Environment World and Spanish Financial Crisis In August 2007 the world financial crisis surfaces due to: End in 2006 of expansion phase that begun 14 years before Wrong and excesively expansive monetary policies applied Failure of the systems of financial regulation and supervision Inappropiate practices within some financial institutions In Spain three different crisis happen at the same time: The world financial crisis The real estate crisis. Caused by the over dimension of the residential construction segment The competitiveness crisis, with consumption and investments reaching the end of the expansion phase, causing an annual external deficit of 10% of the GDP 3

4 Economic Environment World and Spanish Economies overview The world economy as a whole is improving since 2Q09: Germany, Japan and France begin to show positive rates in the 2Q09 and USA and Italy in the 3Q09 In Spain the economic recovery is showing to be slower: The real estate sector is still holding back the growth The homes leverage levels and the unemployment rates continue to be very high and hold back the private consumption growth The Public Deficit has been of 11,4% of the GDP in In 2013 it should not exceed 3%, which will drive to a cut on the consumption public expenditure With less private consumption and less public consumption an increase of exports would be needed to reach an aggregate demand that allows for growth 4

5 Economic Environment Spanish Economy Macroeconomic Data P GDP Growth (1) 0,9% -3,6% -0,4% CPI (2) 1,4% 0,8% 2,1% Construction GFCF (2) -5,8% -11,3% -9,0% ECB Interest Rates BCE (3) 2,5% 1,0% 1,0% Public Deficit (2) 3,8% 11,4% 10,8% Unemployment Rate (4) 13,9% 18,8% 19,3% (1) IMF (2) Funcas (3) BBVA Studies Service (4) INE (2009); OCDE (2010P) 5

6 Economic Environment Spanish Construction Sector Previsions Construction sector sales in real terms (1): -11% Civil Engineering: +2% Non-residential Building: -15% Residential Building: -25% Cement consumption (2): -33% The Public Works Ministry had expresed its intention to maintain the bidding levels: The Ministry of Public Works contemplated an investment for 2010 of more than 17 bn Proposed Extraordinary Plan for Infrastructures , with a budget of 17 bn, equivalent to 1,7% of GDP. Public-private cooperation for the financing with participation from BEI, ICO and the AEB, CECA and construction companies The PEIT execution should tend to guarantee the Civil Engineering activity in the long term Sources: (1) Seopan (2) Oficemen 6

7 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 7

8 OHL s Position OHL well positioned against the crisis Success of the strategy applied since 2002 (anticipation to current concerns): Strong growth in Concessions Strong Growth in International Construction Taking advantage of the best civil engineering years in Domestic Construction Reduction of residential construction since 2002 Exclusion of any real estate activity Financial Soundness and Discipline Permanent needs covered with long term financing Short term credit lines only to meet seasonal needs Important and stable liquidity position No refinancing needs No asset selling needs Recourse Net Debt / Recourse EBITDA ratio of 2.3x as of end of 2009 Investment Grade rating for an 8 year period ( ), only interrupted by the change of criteria of the Rating Agencies during the financial crisis 8

9 OHL s Position OHL, Concessions Group Figures Fixed Assets 2% 11% 4% Orderbook 4%4% 4% EBITDA 14% 2% 23% 61% 83% 88% Sales Workforce 37% 4% 17% 20% 9% 29% 42% 42% OHL Concessions OHL International C. OHL Domestic C. Other 83% of the Fixed Assets, 88% of the Orderbook and 61% of the EBITDA in Concessions 9

10 OHL s Position Concessions, a complementary and profitable business Recurrent revenues and margins Interesting geographical presence Located in Brazil, Mexico, Chile and Peru, on top of Spain Relatively low impact of the crisis in Latam Capable of being financed in non recourse basis OHL is currently #7 concessions Group in the world: 26 main concessions: 22 highways, Km 2 railways 1 port 1 airport Valuation of the concessions as of April 2010 of mn 10

11 OHL s Position Basic Valuation of Concessions (20 April, 2010 Presentation) 310,0 78,0 40,5 4, ,0 419,3 935, ,6 Mexico Brazil Spain Chile Argentina Peru Other TOTAL Basic Valuation of 3.243,0 mn OHL s investment value of 1.248,6 mn OHL has multiplied by 2,6x the value of the investment done 11

12 OHL s Position OHL, International Group Figures Orderbook 86% 14% EBITDA 88% 12% International Domestic Currently operating in America: 9 USA Canada Mexico Equator Brazil Chile Argentina Colombia Peru Central Europe: 7 Czech Republic Slovakia Hungary Montenegro Bosnia Herzegovina Bulgary Rumania Europa Occidental: 1 Portugal Asia: 3 Azerbaiyán Turkey Qatar Africa: 1 Algeria Spain: 1 TOTAL: 22 86% of Orderbook and 88% of EBITDA generated abroad 12

13 OHL s Position : Important and sustainable growth Sales ( mn) EBITDA ( mn) CAGR:+13,8% CAGR:+21,8% Net Profit ( mn) Orderbook ( mn) CAGR:+21,6% Long Term Short Term CAGR:+33,8%

14 OHL s Position Share price Performance The share price performance reflects the successful strategy and the good results obtained Share Price Performance (31/12/02 14/5/10) OHL CAGR: +24,5% Other constr. companies CAGR(1):+4,2% Ibex-35 CAGR: +6,1% OHL IBEX-35 Other construction companies (1) OHL is upgraded to the Ibex-35 in June 2008 Generation of value for the shareholders: Dividend payout of 25% Remaining 75% reinvested in the Group generating a 32.2% ROE (2) 100 euros of 31/12/02 turn as of 14/5/10 into: 136 invested in the average of the other construction companies 503 invested in OHL shares (1) Average of construction companies quoted (without OHL) (2) As of 2009 year end 14

15 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 15

16 2009 Results BRAZILIAN CONCESSIONS 16

17 2009 Results RÉGIS BITTENCOURT HIGHWAY. SAO PAULO CURITIBA. BRASIL 17

18 2009 Results MEXICAN CONCESSIONS 18

19 2009 Results BICENTENARIO VIADUCT IN MEXICO CITY. MEXICO 19

20 2009 Results MIAMI INTERMODAL CENTER. FLORIDA. USA 20

21 2009 Results STRIZKOV SUBWAY STATION. PRAGHE. CZECH REPUBLIC 21

22 2009 Results SIDRA HOSPITAL. DOHA. QATAR 22

23 2009 Results MOHAMED BEHAHMED CONVENTION CENTER. ORAN. ARGELIA 23

24 2009 Results MUSEL PORT ENLARGEMENT. GIJÓN 24

25 2009 Results MADRID GALICIA H.S.N. O EIXO VIADUCT. BOQUEIXÓN - SANTIAGO 25

26 2009 Results VITORIA HIGHWAY - EIBAR. GUIPÚZCOA 26

27 2009 Results COAL STORAGE PARK. LA CORUÑA 27

28 2009 Results VELA HOTEL. BARCELONA 28

29 2009 Results P&L Account Main Figures (mn ) 2009 % 2008 % % Var. Sales 4.389,5 100, ,8 100,0 +9,5% EBITDA 746,9 17,0 607,6 15,2 +22,9% EBIT 534,6 12,2 422,7 10,5 +26,5% Net Profit 165,6 3,8 150,7 3,8 +9,9% Strong growth at all levels of the P&L account Net profit grows 9,9%. Not taking into account the disposal of financial instruments in both years, such variation would have been of +66,1% 29

30 2009 Results Sales (mn ) 2009 % 2008 % % Var. OHL Concessions 742, , ,9% OHL International C , , ,0% OHL Domestic C , , ,2% Other Activities 212, ,9 6-15,3% TOTAL 4.389, , ,5% Sales rise 9,5% mainly driven by Concessions and International Construction despite the fall in Domestic Construction 30

31 2009 Results EBITDA (mn ) 2009 % 2008 % % Var. OHL Concessions 455, , ,1% OHL International C. 173, , ,9% OHL Domestic C. 105, , ,1% Other Activities 12,8 2 35,8 6-64,2% TOTAL 746, , ,9% Despite the difficult macroeconomic environment the EBITDA grows 22,9% fueled by of Concessions and International Construction 31

32 2009 Results Non current Assets and Debt NON CURRENT ASSETS ( mn) 2009 % 2008 % OHL Concessions 4.935,3 77% 3.570,3 73% Other 1.477,1 23% 1.294,2 27% Total Non Current Assets 6.412,4 100% 4.864,5 100% Infrastructure concessions concentrate 88% of the investment effort carried out at Group level in 2009 and currently represent 77% of total investment DEBT ( mn) 2009 % 2008 % Gross Recourse Debt 1.269,8 29% 1.138,4 32% Gross Non Recourse Debt 3.183,8 71% 2.382,2 68% Total Gross Debt 4.453,6 100% 3.520,6 100% Net Recourse Debt 730,1 21% 716,6 26% Net Non Recourse Debt 2.717,2 79% 2.038,8 74% Total Net Debt 3.447,3 100% 2.755,4 100% 70% of Gross debt is long term debt Strong Cash & Equivalents position of 1.006,2 mn 59,6% of Gross Debt at fixed rates Net Recourse debt level: Controlled (2,3x Recourse EBITDA) No growth in 2009 (from 716,6 mn to 730,1 mn) 32

33 2009 Results Financial Structure Optimization December 2009: 199,5 mn capital increase March 2010: 2 year extention of the 190 mn syndicated facility and increase of the size up to 240 mn April 2010: 700 mn 5 year bullet bond issue, exchanging 178,4 mn for old notes and using the remainder to reduce the reliance on the revolving credit lines Improvement of the recourse debt maturity profile 31/12/ /12/2009 Pro-forma (mn ) 800 (mn ) Revolving Syndicated F Notes 2015 Notes Other 33

34 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 34

35 OHL s Future Strategy OHL CONCESSIONS OHL INTERNATIONAL CONSTRUCTION OHL DOMESTIC CONCSTRUCTION OTHER ACTIVITIES FINANCIAL Group s core business Concentrates the Group s investment effort Debt held in non-recourse basis and in local currencies Strong commitment with the prudent criteria: Minimum 15% on site margin Positive cash flow since commencement Collections guaranteed Concentrated in civil engineering Very selective building: Growth in non-residential Decrease in residential with tendency to disappear Industrial: Turnkey construction and engineering projects of industrial plants Developments: Development and promotion of high standard tourism projects in areas of touristic/historical interest Environment: Design/construction/O&M of water desalination and purification plants Continue with strict financial discipline and Investment Grade commitment 35

36 OHL s Future Orderbook Total Orderbook ( mn) ,0% % corresponding to OHL Concessions ,9% +15,6% ,8% 14,7 months of total sales 8,1% -10,4% ,2% Long Term Short Term 36

37 OHL s Future Continuity of the growth in 1Q10 Results ( mn) 1Q10 % 1Q09 % % Var. Sales 972,7 100,0 915,0 100,0 +6,3% EBITDA 175,2 18,0 121,6 13,3 +44,1% EBIT 122,6 12,6 74,5 8,1 +64,6% Net Profit 33,6 3,5 20,4 2,2 +64,7% Sales ( mn) 1Q10 % 1Q09 % % Var. OHL Concessions 222, , ,2% OHL International C. 378, , ,2% OHL Domestic C. 295, , ,6% Other Activities 75,7 8 52,6 6 43,9% TOTAL 972, , ,3% 37

38 OHL s Future 2010 Estimates Maintenance of the strategy applied since 2002 Forecasted growth at EBITDA and net Profit levels in line with previous years and clearly over 10% Continuity of the financial policy: Transparent and rigorous Net Recourse Debt / Recourse EBITDA < 3x Potential non core assets disposal 38

39 OHL s Future Gobierno Corporativo Standarization and consolidation of the Corporate Governance policies of OHL Group Compliance with the current legislation and recomendations regarding the Corporate Governance both at domestic and international levels. Approval of an Ethics Code applicable within the whole Group that guarantees a unique corporate culture for every business unit in Spain and abroad. Consolidation of the commitment of informative transparency through the implementation of a communication channel for every group interested in the different activities of the Group. 39

40 OHL s Future Desarrollo Sostenible Corporate Social Responsibility management of OHL Group 2009 Main Highlights Since 2002 the Group reports regarding its policies, management systems and annual actions within Corporate Social Responsibility (CSR) and its commitment with the Sustainable Development. The mentioned report covers the economic, ethic, laboural, social and enviromental actions taken. Together with the economic and Corporate Governance information forms part of OHL Annual Report. The Sustainable Development report is done according to the international standards of Global Reporting Initiative (GRI), in its highest application requirements level A+, leaning on the GRI. Since 2005 the CSR report provides the added value of an external auditing, done by Deloitte, S.L., that guarantees the veracity and transparency of the information shown. Since March 2008, OHL is included in the FTSE4Good IBEX, first index in the Spanish market that looks at sustainability criteria. Approved by the Board of Directors a new Ethics Code to be applied within all the companies of OHL Group. Elaboration of the first Corporate Social Responsibility Guidelines Scheme, prepared by the sustainability Committee at the begining of OHL, first construction company to receive the European Environment Price spanish Section in the category of process for the Sustainable Development, for the work of the submarine emissary of Berria (Cantabria). Around training hours given within the Group during 2009, coorresponding to laboural risk prevention the 24% of them. Reductions shown on every laboural accident index. Leadership in relevant R&D projects in colaboration with 33 investigation organisms, as important Universities and Technological Centers. 40

41 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 41

42 Resolutions Proposal First Second Approval of the Annual Acccounts and the Management Report, corresponding to 2009 financial exercise of OBRASCON HUARTE LAIN, S.A. and its Consolidated Group Approval of the proposal of distribution of the exercise results Third Forth Approval of the management of the Board of Directors during the exercise Re- appointment of the Auditors of the Accounts of the Company and its Consolidated Group 42

43 Resolutions Proposal Fifth Sixth Seventh Eighth Ninth Authorization to the Board of Directors to let the Company acquire own shares, directly or through a subsidiary according to the Limited companies Law Appointment and re-appointment of Directors Report on the Payments to Directors policies Report on the issues refered on the article 116 bis. Of the Stock Market Law Approval of the amendment to the OHL Group Management Incentives Scheme linked to the Company share price performance 43

44 Resolutions Proposal Tenth Approval of the amendment to Article 9 of the Articles of Association reffering to the issue of bonds and other negotiable securities Eleventh Report on the amendments to the Board of Directors regulations of Obrascón Huarte Lain, S.A, approved by the Board of Directors fo the Company Twelfth Thirteenth Report on the use by the Board of Directors of the faculty of issuing notes and simple bonds delegated to them by the Shareholders Meeting Delegation of faculties for the development, notarization and registration of the above mentioned resolutions as well to make the preceptive deposit of the Annual Accounts in the Trade Registry Fourteenth Approval of the Shareholders Meeting certificate 44