Bases de la Presentación Shareholders Meeting

Transcription

1 Bases de la Presentación 2008 Shareholders Meeting 0 Madrid, May 5th 2009

2 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, the business strategy and the future objectives, are to be interpreted only as future estimations, and as such, they imply known and unknown risks, uncertainties and other factors that could cause OHL s results, behavior and achievements, or the results and conditions of its activities, to be substantially different to any future estimations. This presentation and the future estimations contained here within, are facilitated on this date and OHL expressly declines from any obligation or compromise to facilitate any update or revision of the information contained here within, any change in its expectations or modification in the facts, conditions and circumstances in which these future estimations were founded. 1

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

4 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 3

5 Economic Environment The World Economy in crisis The world has enjoyed an expansive growth cycle for the last 15 years ( ) having been specially strong in the last 4 years ( ) in which the world average growth rate was 5% In 2008 the cycle reverses, and the world economy enters in crisis due to: End of the expansive phase Excessive increase of the fuel price Crash of the real estate sector Mistakes in monetary policy, excessivelly expansive Failure of the regulatory and financial supervising systems Cases of lack of responsibility in the management of of some financial institutions Since 2008, fortunatelly, begins a coordinated global action of the World Governments, International Institutions and Central Banks to face the crisis, adopting measures in several stages: Liquidity increase Rescue of Financial Institutions Economic activity revitalization 4

6 Economic Environment Impact of the crisis in the Spanish Economy In Spain the world financial crisis takes place at the same as two other Spanish crisis (the real estate crisis and the competitiveness decrease crisis) The real estate crisis has a greater impact in Spain than in other countries. Several years building homes at a pace of homes / year equal to two times the real sustainable demand. This crisis is produced due to: Historically minimun interest rates Practically unlimited access to liquidity Highest importance of homes as an investment, very specific of the Spanish culture And drives to an approximate stock of homes built and pending to be sold of around one million, that stops the construction of new homes and that will take around three years to be absorbed by the market. Better situation of the Spanish financial institutions: The strict regulation of the Spanish Central Bank has not allowed the financial institutions to invest largelly in more risky assets Until today, the main problem of the banks and savings banks has been liquidity, not solvency, although the liquidity deficit causes credit restrictions and the increase of unemployment is pushing up the level of defaults Excesive dependence on external financing due to the lack of competitiveness: 10,1% deficit of the Balance of Payments in 2007 (highest percentaje in the world) 5

7 Economic Environment The Spanish Economy Macroeconomic Figures P GDP Growth (1) 1,2% -3,0% GDP (2) 1,4% -0,1% Construction GFCF (3) -5,8% -10,5% ECB Interest Rates (3) 2,5% 0,5% Public Deficit (4) 3,8% 5,8% Unemployment Rate (1) 13,9% 17,7% (1) IMF (2) Funcas (3) BBVA Studies Service Forecast (4) Stability Programme Update 6

8 Economic Environment Construction Sector in Spain Relative Position (2007 figures) Construction has contributed 27% of the economic growth of the country in the last 5 years ( ) Between , out of the 45,4% GDP growth, 10,6 points come from investment in construction corresponding 5,7 points to investment in residential building As a consequence, the size of the construction sector turnover in Spain vs GDP (19%), is two times the size in Europe and the world (9% or 10%) Construction Turnover (thousand mn ) (*) % Country GDP Turnover per capita World ,2 550 E.U , Germany 235 9, UK 179 9, France 167 9, Spain , (*) Facturación en términos nominales Existing stock of around one million homes pending to be sold in Spain, figure equal to the demand of three years Sources: FIEC (Europe) Asia construct and Euroconstruct (World) 7

9 Economic Environment Construction Sector in Spain 2008 and Future Estimated growth rate of -5,1% (real terms) Civil Engineering has been the only segment with positive growth 2008 Main indicators of activity: Cement consumption: -23,8% Occupied population in construction: -10,9% Public Bidding: -1,3% Source: Seopan 2009 Previsions AccordingtotheGeneral Public Budget, the investment in infrastructures to be done by the Public Works and Environment Ministires could increase by +4,5% (in nominal terms) According to the Government, Public Bidding will increase by +11% Seopan forecasts strong activity decrease that could reach double digits due to the decrease in the construction of homes. Civil Engineering is still expected to show positive growth The execution of the PEIT guarantees in the long term the activity of the sector in civil engineering 8

10 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 9

11 OHL s Position OHL best positioned to face the crisis challenges Successful strategy announced in 2002 anticipating the current concerns No real estate activity Reducing the presence in residential construction since 2002 Increasing international presence Increasing diversification, always into related to construction businesses: 56% of EBITDA comes from concessions Healthy financial situation due to the discipline applied No need of selling assets No need of refinancings Permanent needs covered with long term debt With important liquidity position at the end of the year With a controlled level of debt: Recourse Net Debt Recourse EBITDA = 2,7 10

12 OHL s Position OHL Diversified Group (2008 figures) Sales Workforce 7% 13% 36% 44% 26% 12% 20% 42% Fixed Assets Orderbook EBITDA 11% 3% 5% 5%5% 5% 6% 20% 81% 85% 56% 18% OHL Concessions OHL International C. OHL Domestic C. Other 74% of EBITDA and 90% of orderbook in Concessions and International Construction activities 11

13 OHL s Position The importance of the concessions Complementary business: Knowledge of clients, markets, technology and other aspects High gowth potential Recurrent revenues and margins Sellective investments of high profitability and controlled risk Capability to obtain financings with no recourse to OHL Business very resilient to the world financial crisis: Growth in revenues Traffic resistence Tolls indexed to inflation Availability of financing, although with negative impacts: Financial entities still maintain their appetite Developments public bank support Increase in bank spreads, term reduction and decrease in leverage levels Increase in business opportunities: Lesser competition Increase of government interest in private investment in infrastructures Lesser impact of the crisis in Latin America 12

14 OHL s Position OHL Concesiones Main Concessions - I - Toll Roads Aecsa Total Argentina Autovias Centrovias Intervias Vianorte Rio de Janeiro-Espirito Santo São Paulo-Belo Horizonte São Paulo-Curitiba Curitiba-Florianópolis Curitiba-Rio Grande do Sul Total Brazil Autopista del Sol Autopista Los Libertadores Autopista Los Andes Total Chile Autovía M-45 Autopista M 12 Autovía de Aragón-Tramo 1 Total Spain Conmex (Fase I) Conmex (II, III y IV) Amozoc-Perote Libramiento Norte de Puebla Viaducto Bicentenario Total Mexico Autopista del Norte (2) Total Peru Total Toll Roads Country Argentina Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Brazil Chile Chile Chile Spain Spain Spain Mexico Mexico Mexico Mexico Mexico Peru Stage Operation Operation Operation Operation Operation Pre-operation Pre-operation Pre-operation Pre-operation Pre-operation Operation Operation Operation Operation Operation Pre-operation Operation Construction Operation Construction Construction Pre-operation Km , ,400 Total Investment , , , ,188 3, ,777 OHL Investment % OHL Value 71% % 60% 60% 60% 60% 60% 60% 60% 60% 75% 75% 100% 100% 100% 95% 87% 100% 55% 100% 100% 100% 77% Average Daily Traffic (1) 214, ,786 60, ,576 79,582 NA NA NA NA 71,201 36,206 13,786 (3) 77,303 10,575 NA 119,673 NA 18,911 NA NA NA (1) Traffic figure corresponding to equivalent vehicles paying with the exception of M45 that shows the average daily intensity (ADI) (2) Contract signed in February 2009 (3) Traffic corresponding to west sector, began operations in June

15 OHL s Position OHL Concesiones Main Concessions - II - Others Country Stage Operated Facilities Total Investment % OHL OHL Investment Value Passengers / Year Metro Ligero Oeste Spain Operation 22 Km. 2 Lines % million Cercanías Móstoles- 15 Km. Spain Construction Navalcarnero 1 Line % 30 Ha. Inner Puerto de Alicante Spain Operation Harbour 1,275 m. Berthing % Line Airport, Toluca (Airport) Mexico Operation complementary and commercial % services Total Others 1,772 60% TOTAL 11,549 74% NA 269, million 14

16 OHL s Position Concessions Basic Valuation (23 April 2009 Presentation) ( mn) ,2 358,3 78,0 45,4 4, , , , Mexico Brazil Chile Spain Argentina Peru Other TOTAL Basic Valuation of 2.640,8 mn OHL has multiplied by 2,9 times its investment 15

17 OHL s Position OHL International Group (2008 figures) Sales Workforce 51% 49% 69% 31% Fixed Assets Orderbook EBITDA 34% 17% 20% 66% 83% 80% International Domestic Higher weight of the international component in every main parameter 16

18 OHL s Position OHL International Group (2008 figures) 17 America: 9 USA Canada Mexico Ecuator Brazil Chile Argentina Colombia Peru Eastern Europe: 6 Zcech Rep. Slovch Rep. Hungary Montenegro Bosnia Herzegovina Bulgaria Asia: 3 Azerbaiyan Turkey Qatar Africa: 1 Algeria Spain: 1 TOTAL: 20 Polonia Germany Croacia Greece Portugal Andorra Russia Irak Saudi Arabia Indonesia Jordania Honduras Costa Rica Panamá Venezuela Paraguay Uruguay Cuba Morroco Equatorial Guinee Trinidad & Tobago

19 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 18

20 2008 Results CANTÁBRICO HIGHWAY. REINANTE - BARREIROS 19

21 2008 Results EAST ROUND. ZARAGOZA FOURTH BELT 20

22 2008 Results CANAL THEATRES. MADRID 21

23 2008 Results NEW SOUTH TERMINAL. BARCELONA AIRPORT 22

24 2008 Results SINCROTRÓN LIGHT LABORATORY. BARCELONA 23

25 2008 Results FENOL CUMENO III PLANT. ERTISA. HUELVA 24

26 2008 Results SAN EDUARDO TUNNELS. GUAYAQUIL. ECUADOR 25

27 2008 Results TŘEBOVICE RAILWAY CORRIDOR. CZECH REPUBLIC 26

28 2008 Results TERMINAL OF JACKSONVILLE PORT. FLORIDA 27

29 2008 Results TOLUCA AIRPORT. MEXICO 28

30 2008 Results ORAN CONVENTION CENTRE. ARGELIA 29

31 2008 Results AMOZOC-PEROTE ROAD. MEXICO 30

32 2008 Results P&L Account Main Figures ( mn) 2008 % 2007 % % Var. Sales 4.008,8 100, ,4 100,0 +6,5% EBITDA 607,6 15,2 542,9 14,4 +11,9% EBIT 422,7 10,5 373,7 9,9 +13,1% Net Profit 150,7 3,8 140,5 3,7 +7,3% Good results at operating level despite the complicated macroeconomic environment Double digit growth of EBITDA and EBIT Net Profit grows +7,3% 31

33 2008 Results Ventas ( mn) 2008 % 2007 % % Var. OHL Domestic C , ,9 52-9,5% OHL International C , , ,0% OHL Industrial 25, n/a OHL Concessions 542, , ,5% OHL Environment 119, ,8 3 +2,7% OHL Developments 105,5 3 76, ,8% TOTAL 4.008, , ,5% Sales grow +6,5% mainly impulsed by International Construction and Concessions and despite the fall in Domestic Construction 32

34 2008 Results EBITDA ( mn) 2008 % 2007 % % Var. OHL Domestic C. 120, , ,4% OHL International C. 111, , ,8% OHL Industrial 1, n/a OHL Concessions 339, ,0 58 (1) +7,2% OHL Environment 19,3 3 13, ,5% OHL Developments 14,9 3 8, ,3% TOTAL 607, , ,9% EBITDA growths in every activity despite the difficult macroeconomic scenario and the negative performance of the currencies mainly concentrated in the last quarter of 2008 (1) Like to like equivalent to +25,2%, discounting Fumisa and Eje Aeropuerto provision effects 33

35 2008 Results Fixed Assets and Debt FIXED ASSETS ( mn) 2008 % 2007 % Infrastructure concessions 3.570,3 73% 3.168,1 77% Other 1.294,2 27% 1.173,7 23% Total Fixed Assets 4.864,5 100% 4.341,8 100% Infrastructure concessions have concentrated 77% of the Group s investment effort in 2008 DEBT ( mn) 2008 % 2007 % Gross Recorse Debt 1.138,4 32% 948,2 31% Gross Non-recourse Debt 2.382,2 68% 2.143,7 69% Total Gross Debt 3.520,6 100% 3.091,9 100% Net Recourse Debt 716,6 26% 330,0 15% Net Non-recourse Debt 2.038,8 74% 1.930,4 85% Total Net Debt 2.755,4 100% 2.260,4 100% 89% of gross debt is long term 74% of net debt at fixed cost Recourse leverage adecquate to the rating category (Net Recourse Debt equal to Recourse EBITDA (1) multiplied by 2,68) Strong Cash & equivalents position of 765,1 mn (1) Recourse EBITDA = Total EBITDA Concessions EBITDA 34

36 2008 Results Liquidity and maturity profile Recourse availability ( mn) 2008 Final Maturity Euro Bonds 600 May 2012 Syndicated Loan 78 January 2011 (1) Revolving Syndicated Facility 225 January 2011 (2) Group s revolving credit lines 904 Yearly review Other (commercial discount and mortgages) 64 Total Recourse Financing available Gross Recourse Debt Un-used Gross Recourse financing 733 Recourse Cash & Equivalents 422 Total Recourse Liquidity available Total Recourse Liquidity available of mn as of December 2008 Maintenance of Recourse credit lines during the year. Most of them renewed, and extensions or new lines to cover cancellations (1) Bi-annual maturities in January and July. Annual amounts of 31 mn in 2009, 31 mn in 2010 and 16 mn in 2011 (2) Annual maturity in January: 12 mn in 2009; 22 mn in 2010 and 191 mn in

37 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 36

38 OHL s Future Business Strategy Continuity in the implementation of the stategy announced in May 2002 OHL DOMESTIC CONSTRUCTION Continue taking advantage of the Civil Engineering moment Selective Building: Growth of Non-residential Continue reducing Residential (tending to dissapear) OHL INTERATIONAL CONSTRUCTION OHL INDUSTRIAL Strong commitment with prudent criteria: Minimun 15% margin on site Positive Cash flow since the beginning Collections guaranteed Constructor or supplier of complete industrial plants: Not only constructor In Spain and specially abroad OHL CONCESSIONS Core business of the Group Concentrates the Group s investment effort Debt in Non-recourse basis and in the same currency as collections OHL ENVIRONMENT OHL DEVELOPMENTS Presence worldwile in water desalination and purification concessions High standard projects in areas of toursitic and historical interest 37

39 OHL s Future Financial Strategy Continuous effort of optimisation of the financial structure Long term recourse debt to cover permanent needs Short term credit lines to cover seasonality Concessions financed in Non-recourse basis and in the same currency as collections Dividend policy Maintenance of 25% payout 38

40 OHL s Future Corporate Governance Continuously commited with Corporate Governance Disciplined compliance with the current legislation regarding Corporate Governance Adaptation of the set of rules and the governance bodies to the current Spanish legislation and recomendations Informative transparence through accesible channels, opened to shareholders and interest groups of the Company Public Recognition For the third consecutive year, in 2008 OHL remains ranked among the companies of the Spanish Stock Market with highest grade according to the Observatory of Corporate Gorvernance and Informative Transparence 39

41 OHL s Future Sustainable Development Corporate social responsibility management of OHL Group The Group informs since 2002, and in a separate document since 2003 through the Sustainable Development Report (SDR). Since 2005 the annual reports are externally audited by Deloitte to guarantee the reliability and transparency of the information SDR obtains the maximum application level A+, backed up by the Global Reporting Initiative (GRS), G3 version. Special mention to the 2008 Annual Report, with more improvements and innovations in the VII Edition of the Sustainability Reports Awards, awarded by the Instituto de Censores Jurados de Cuentas de España and the Asociación Española de Contabilidad y Administración de Empresas. Rewards and distinctions to several divisions and countries in Corporate Social Responsibility main points Inclusion of the Group in the FTSE4Good IBEX index, first index launched in the Spanish market with sustainability criteria. Transfer of the Groups headquarters to Torre Espacio, one of the most functional, ecological and emblematic buildings in Spain. OHL enters the Ibex 35. A 16% reduction in the labour accident rate index. Compromise to reduce the issuance de greenhouse effect gases. Group s Social Action Scope Plan. Leader in relevant R&D projects and UNE certificate. 40

42 OHL s Future Orderbook ( mn) ,8 months of total sales 10,2% +55,2% ,6% Short Term Long Term 95% corresponding to infrastructure concessions ,8% +61,9% ,9% ,1%

43 OHL s Future 2009 Estimates Maintenance of the financial discipline and policies Growth in Sales, EBITDA and Net Profit 42

44 Summary I. Economic Environment II. OHL s Position III Results IV. OHL s Future V. Resolutions Proposal 43

45 Resolutions Proposal First Approval of the Annual Accounts and the Management Report, corresponding to 2008 financial exercise of OBRASCON HUARTE LAIN, S.A. and its Consolidated Group Second Approval of the proposal of distribution of 2008 Results Third Approval of the management of the Board of Directors during 2008 Forth Re-appointment of the Auditors of the Accounts of the Company and its Consolidated Group for

46 Resolutions Proposal Fifth Authorization to the Board of Directors to let the Company acquire own shares, directly or through a subsidiary according to the Anonimous Societies Law Sixth Reduce the sock capital by amortising the own shares acquired by the Company according to the Share Buy Back Programme approved by the Borad of Directors on October the 10th of 2008e 2008 Seventh Cease, appointment and re-appointment of Directors Eigth Approval of the Report of payments to Directors drawn up by the Board of Directors on March 31st of

47 Resolutions Proposal Ninth Approval of the Report on the issues refered in the article 116 bis of the Stock Markets Law drawn up by the Board of directors on March 31st of 2009 Tenth Delegation of faculties for the development, notarization and registration of the above mentioned resolutions as well as to make de preceptive deposit of the Annual Accounts in the Trade Register Eleventh Approval of the Shareholders Meeting certificate 46