2016 Results presentation March 1st 2017

Transcription

1 2016 March 1 st 2017 Results presentation

2 Executive Summary 1. Positive 2016 results Net Profit 751 mn +3.5% transformation process Operating improvement EBIT margin +30pb FFO 1,397 mn +20% Financial improvement Net Debt 1,214 mn (-54%)yoy 0,6x EBITDA 3. Ready to grow and face future challenges Robust project backlog Backlog 66,526 mn +13% 36% 18% Excellent geographical positioning 25% 2

3 Key operating figures 2016 Var. 15/16 Var. PRO-FORMA* Sales 31,975 mn -4.0% -2.7% EBITDA 2,023 mn -5.5% -2.6% EBIT 1,445 mn +1.7% +6.0% Net Attributable Profit 751 mn +3.5% +4.3% Backlog 66,526 mn +12.9% +11.5% * Eliminating renewables assets and FX impact 3

4 Key financial figures 2016 Var. 15/16 Net Debt 1,214 mn -53.7% Net financial expenses 340 mn -28.4% EPS % Share evolution and return for shareholders % TSR (Total Shareholder Return) 15.4% DPS (Dividend per Share) DY (Dividend yield) 3.8% 4

5 Geographic diversification Var. 15/16 Sales , mn -4.0% Country 46% 14,669 mn Sales 2016 ( mn) 21% 6,910 mn United States 12, % Australia 5, % Spain 4, % Hong Kong 1, % Mexico 1, % Canada 1, % Germany % Saudi Arabia % Poland % 26% Indonesia % Brazil % Chile % United Kingdom % Peru % Portugal % Rest 2, % TOTAL 31, % 6% 1,768 mn 1% 286 mn 8,342 mn 5

6 Sales breakdown 25,319 mn mn mn -4.4% +3.3% 24,217 mn mn mn Australia 5,069 mn (-15.9%) South America 400 mn (-13.5%) 2% 21% 10% Sales 24,217 mn CONSTRUCTION Asia 2,335 mn (-24.0%) 5% 8% Spain 1,194 mn (-12.7%) Rest Europe 2,087 mn (-5.3%) Impact from sales slowdown in CIMIC (termination of large LNG projects) CIMIC shows signs of recovery (+17% 2H vs 1H) Strong growth in the US market (+8.5%) 54% North America 13,131 mn (+7.8%) 6

7 Sales breakdown 6,501 mn 54 mn mn Divestments renovables -3.0% 6,256 mn mn Asia Pacific 938 mn (+51.2%) Africa 284 mn (+75.0%) 15% 4% INDUSTRIAL SERVICES 27% Sales 6,256 mn Spain mn (-21.1%) 7% Rest Europe 419 mn (-2.0%) Strong growth in Asia, which represents 15% of the sales, mainly in Saudi Arabia, Japan and UAE (United Arab Emirates) 73% of the sales outside Spain (+4.9%) Impact from the domestic activity slowdown and the /MXN Exchange rate 22% South America mn (-1.9%) 25% North America mn (-11.1%) 7

8 Sales breakdown mn +2.2% mn Spain mn (+0%) Rest Europe 87 mn (41.6%) 7% Sales 1,538 mn SERVICES Urbaser sale in December 2016 (contribution until its sale; reclassified as discontinued operations) Solid positioning in Spain with a growing exposure to the european market 93% 8

9 Operating results - EBITDA CONSTRUCTION INDUSTRIAL SERVICES SERVICES -2.3% * Ex renovables 1,438mn 1,405mn -3.0% 649mn 630mn 444mn +37.8% 612mn 74mn +4.9% 78mn * Margin 5.7% Margin 5.8% Margin 10.0% Margin 10.1% Margin 4.9% Margin 5.0% Affected by the downturn in CIMIC Margin EBITDA ex-cim improves by 90bp up to 3.5% Affected by: (i) MXN depreciation (ii) Slowdown in support services in Spain Slight margin increase in Clece 9

10 Net Profit million Net Profit Construction Net Profit Industrial Services (1) Net Profit Services Net Recurring Profit from activities Var. +2.2% -3.0% +14.9% +1.2% Renewable energy assets contribution 6 0 Corporation Net Attributable Profit % (1) Not including the contribution from the renewable assets sold in

11 Operating Cash Flow Interest payments and other financial expenses 532 mn Interests received and other financial income 159 mn Tax Payments 171 mn Adjustments and other revenue/cost derived from the transformation process Cash outflow Cash Inflow EBITDA ,023 mn FFO ,162 mn 82 mn +20% FFO 2016 Funds From Operations before WC variation and CAPEX 1,397 mn 11

12 Free Cash Flow from Operations Operating Working Capital variation - 21 mn Debtor increase / cash outflow Credit increase / cash inflow HOCHTIEF ACS ex HOT 264 mn 285 mn FFO 2016 Funds From Operations before WC variation and CAPEX 1,397 mn Substantial improvement in HOT America Reduction in the average payment period in Dragados Positive evolution in Industrial Services despite Mexico Operating CAPEX 332 mn FCF 2016 Net funds from operating activities 1,045mn 12

13 Net Operating CAPEX breakdown Net operating CAPEX 332 mn Construction Investments 377 mn Industrial Services Services 277 mn 36 mn 18 mn Divestments 100 mn Investments 40 mn Divestments 4 mn Investments 22 mn Divestments 4 mn Dragados 90 mn Services 6% HOCHTIEF CIMIC 55 mn 132 mn CIMIC 40% Industrial Services 11% Dragados 27% HOCHTIEF 16% 13

14 Net Financial and Project Investments breakdown Net Divestments 854 mn Net Investments in concessional assets Net Financial Divestments Investments 16 mn 870 mn Divestments 131 mn 115 mn Investments 975 mn Divestments 1,845 mn Construction 33 mn Net Investment Urbaser sale* Disposal 1,144 mn CIMIC Transaction Net Investment 623 mn Industrial Services 17 mn Net Divestments Sedgman/Devine Investment 87 mn UGL Investment 370 mn NextGen Disposal 122 mn Treasury stock Investment 287 mn Iberdrola Disposal 471 mn Others Net Investment 122 mn * Not including 20 mn from the dividends distributed in mid year 14

15 Net Debt Evolution Net Debt Dec 2015 Funds from operations (FFO) UGL Acquisition Urbaser Divestments Other Net financial investmenrs SH remuneration Adj. F/X, perimeter and other Net Debt Dec mn funds collected from the sale 1, mn Net Debt deconsolidation 2, mn share acquisition 102 mn Net Debt incorporated 472 1, mn dividends 131 mn treasury stock 457 Net Debt / EBITDA = 0.6x 1,214 * 15

16 Drastic de-leverage Net Debt / 2016 EBITDA = 0.6x % % Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Project Finance 16

17 Net Debt structure breakdown by activity CONSTRUCTION INDUSTRIAL SERVICES SERVICES CORPORATION 6,300 mn Market value of listed subsidiaries as of 31/12/2016 2,179 mn Net Cash position 1,214 mn 319 mn (586) mn (701) mn Group s Net Debt 17

18 Significant net financial expenses reduction % 4.53% Implicit cost of debt 475 3,70% % NET FINANCIAL EXPENSES Related to debt/cash Others 18

19 Financial expenses breakdown evolution % % R/ to Gross Debt R/ to AHS (Assets Held for Sale) Bonding & guarantees *Bank fees and other debt restructuring associated costs, Derivative instruments costs, Commercial discount and factoring Other financial expenses* NOTE: Data ex Urbaser 19

20 Strategic consolidation of the business model Key 2016 business acquisitions Mineral processing: A$ 379mn sales Strategic rationale: Extension of services in the contract mining sector to strengthen the current positioning Price: A$ 118 mn EV/EBITDA: 4.9x Takeover 100% Industrial Services: A$ 1.9bn. A$ 4.9bn backlog. 6,800 employees Strategic rationale: Activity diversification Price: A$ 516 mn EV/EBITDA: 7.3x Takeover 100% Contract mining: : A$ 347 mn sales. A$ 1.5bn backlog. 1,529 employees Strategic rationale: Operating sinergies with Thiess Price: A$ 138 mn EV/EBITDA: 3.4x Takeover 100% WIP 20

21 Strategic consolidation of the business model Key 2016 business disposals Urban services and waste treatment: 1,6bn sales. 16% margin EBITDA. 8.1bn backlog. Strategic rationale: Non core activity, capital intensive Price: 1,164 mn (+ earnout 235mn) Capital gain: 357mn PE : 23.2x - (27.9x) SALE Logistic services: 131mn sale. 6% margin EBITDA. Strategic rationale: Non core activity Price: 55 mn PER: 24.5x SALE in 2017 Telecommunication. Strategic rationale: Non core activity CIMIC held a stake of 29% Price: A$ 181 mn EV/EBITDA: n.a SALE 21

22 Global leadership consolidation Var. 15/16 Backlog ,526 mn +12.9% 36% 23,896 mn 18% 12,021 mn 38% 25,270 mn 7% 4,389 mn 1% 950 mn 22

23 Backlog and Awards Backlog 55,769 mn +14.1% D 398 mn Expansion of Aberdeen Harbour in Nigg Bay (United Kingdom) H CONSTRUCTION 128 mn Construction of Stellingen Tunnell in the A7 motorway enlargement project (Hamburg, Germany) H C North America mn (+22.1%) Rest Europe 4,943 mn (+2.4%) 658 mn Modernization and expansion of LA International Airport (Los Angeles, United States) 40% 9% 5% Spain 2,837 mn (-2.3%) 290 mn Contract mining sercives in Athabasca (Canada) 1% 4% 42% H D Asia Pacific 23,530 mn (+13.3%) South America 2,245 mn (+2.8%) 678 mn Design and construction of Chesapeake Bay Bridge-Tunnel (Virginia, United States) 363 mn Rehabilitation and improvement works in the Corpus Christi Harbor Bridge (Texas, United States) D Construction of Amazon s new logistic center in Barcelona (Spain) C 101 mn 293 mn Design and construction of Logan Enhancement (Queensland, Australia) C C 551 mn Project fot the construction of the Tseung Kwan O - Lam Tin highway tunnel (Hong Kong) 318 mn Elimination of level crossing and rebuild of railway stations 2016 Result (Melbourne, Presentation Australia) C C 371 mn Contract extension of Melak Coal Mine in Kalimantan (Indonesia) 183 mn Construction of the Christchurch Hospital Acute Services Building (New Zealand)

24 Backlog and Awards Backlog 8,762 mn +4.0% 57 mn Fabrication of 4 substation jackets for the Hornsea offshore wind farm project (Denmark) INDUSTRIAL SERVICES 149 mn EPC project for Ras Al Khaimah desalinisation plant (100,000 m3/day) (United Arab Emirates) Rest Europe 291 mn (-16.9%) North America 1,839 mn (-11,8%) 21% 3% 130 mn Ethylene cracking unit for Franklin new petrochemical complex (Pennsylvania, United States) 20% South America 2,144 mn (+46.4%) 90 mn Design, supply and construction of the Renace IVhidroelectric plant in Alta Verapaz (Guatemala) 64 mn Network maintenance in Andalucía and specific work in tension in Catalonia (Spain) mn Construction of transmission lines in the states of Bahia, Minas Gerais, Ceará, Piaui y Maranhao (Brazil) 249 mn Construction of a waste treatment unit in Ruwais (United Arab Emirates) 76 mn EPC project for Tuas 3 desalinisation plant (136,000 m3/day) (Singapore) 220 mn EPC contract for a fertilizer plants complex (Egipto) Spain 1,954 mn (-3.5%) 22% 25% 9% Asia Pacific 1,740 mn (+4.9%) África 793 mn (-5.1%) 60 mn Contract for the gas services distribution for Gas Natural (Chile) 92 mn Pastorale wind park development (53 MW) (Uruguay) 24

25 Backlog and Awards Backlog 1,995 mn +21.2% 68 mn Contract for airplanes cleaning services for Iberia (Spain) 47 mn Enlargement of the contract for cleaning services in the facilities of the Spanish Police (Spain) Services Spain 1,908 mn (+16.5%) 29 mn Renovation and facility management services for Otazu retirement home (León, Spain) 30 mn Contract for the facility management of Laguna de Duero retirement home in Valladolid (Spain) 30 mn Contract for home care services in Barcelona (Spain) 169 mn Renewal of the contract for home care services in Madrid city (Spain) 4% 96% 70 mn Facility management of "La Jesuitina" retirement home in Valladolid (Spain) 57 mn Contracts for the integral cleaning service of the Specialized Care Centers attached to the Madrid Health Service (Spain) 56 mn Rest Europe 87 mn 42 mn Renovation of the contract for the service of help at home for the Diputación de Almería (Spain) Contract for cleaning services in buildings of Valencian Community Health Department (Spain) 25

26 Excellent positioning in strategic markets with growth potential 129 mn C-470 Highway in Denver, Colorado 68 mn New state museum, Tennesse 136 mn Backlog Union Terminal museum in Cincinnati, Ohio 19.1 bn Sales 12.2 bn 362 mn Water treatment plants, California 103 mn Naval Academy's Center, Maryland $ 16.5bn $ 20.1bn 658 mn Los Angeles International airport, California 83 mn Tollman Hall Building in Berkeley University, California 811 mn 100km of high speed railway, California 363 mn Rehabilitation of CC Harbor bridge, Texas 160 mn SH-288 road extension in Harris county, Texas 678 mn Tunnel- bridge in Chesapeake Bay, Virginia 108 mn Wellsburg bridge over Ohio river, West Virgina 65 mn 482 Sand Lake Road in Orlando, Florida $ 15.6bn mn I-40 Winston - Salem, North Calorina +21% BACKLOG EEUU 26

27 Excellent positioning in strategic markets with growth potential Backlog 16.3 bn *En Australia Sales 5.1 bn 293 mn Design and construction of Logan Enhancement (Queensland) $ 29bn +17% $ 34bn UGL 103 mn 318 mn Elimination of level crossing and rebuild of railway stations (Melbourne) Upgrade works in a section of Bruce Highway (Queensland) 62 mn 135 mn Construction of phase II of the Gold Coast light rail, Southport - Helensvale (Queensland) Works for installation and connection of ultra-fast broadband (New Zealand) BACKLOG 120 mn Network integrity and facilities management supply services to over 40,000 exchange and network assets across Australia. 85 mn Contract extension with Telstra for the delivery of Wideband Services across Australia 27

28 Excellent positioning in strategic markets with growth potential 5% Backlog 3,146 mn 1,050 mn Canada Sales 4% Backlog Sales 2,742 mn 941 mn Germany 10% Spain Backlog Sales 6,699 mn 4,293 mn Backlog Sales 2,582 mn 1,602 mn 4% HK 3% Mexico Backlog Sales 1,677 mn 1,394 mn 2% Peru Backlog Sales 1,612 mn 322 mn 3% Indonesia Backlog Sales 1,817 mn 394 mn % over total Backlog Data as of Countries with backlog > 1bn 28

29 Ready to grow and face future challenges Growth Leading position in markets with growth potential New challenges Investment and development of more advanced infrastructure in an ever increasing globalized world Healthy and efficient financial structure Strong investment capability thank to a robust cash generation and low leverage position An ever more competive and demanding sector which requires a flexible and evolutive business model 29

30 Objetives Maintain a solid competitive and strategic positioning Continue with the Group s transformation process Further improvement in the Group s financial structure Sustainable growth Improve operating and financial efficiency Raise market value Increase total shareholder return 30

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32 Legal 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 its business lines and its overall turnover. its market share. the results of Grupo ACS and other matters relating to the Group s activities and current position. These forward-looking statements or forecasts can in some cases be identified by terms such as expectation. anticipation. proposal. belief or similar. or their corresponding negatives. or by the very nature of predictions regarding strategies. plans or intentions. Such forward-looking statements or forecasts in no way constitute. by their very nature. guarantees of future performance but are conditional on the risks. uncertainties and other pertinent factors that may result in the eventual consequences differing materially from those contained in said intentions. expectations or forecasts. ACS. Actividades de Construcción y Servicios. S.A. does not undertake to publicly report on the outcome of any revision it makes of these statements to adapt them to circumstances or facts occurring subsequent to this presentation including. among others. changes in the business of the company. in its strategy for developing this business or any other possible unforeseen occurrence. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take decisions or to draw up or to publish opinions on securities issued by Grupo ACS and. in particular. by the analysts and investors reading this document. All the aforesaid persons are invited to consult the public documentation and information that Grupo ACS reports to or files with the bodies responsible for supervising the main securities markets and. in particular. with the National Securities Market Commission (CNMV in its Spanish initials). This document contains financial information drawn up in accordance with International Financial Reporting Standards (IRFS). The information has not been audited. with the consequence that it is not definitive information and is thus subject to possible changes in the future.