3Q Results Presentation November 15, 2016

Transcription

1 3Q 2016 Results Presentation November 15 th, 2016

2 Results Highlights 1 2 Solid results based on: Improved operating efficiency EBIT 1,119mn Reduction of financial expenses L-f-L (+50 bp) Net fin. expenses 248mn (-38%) Good opwc performance in 3Q 3Q WC inflow of 380mn Net FFO 56mn vs (119)mn 9M15 Urbaser sale agreement supports further degearing Prof ND/EBITDA ratio 0.8x 3 Robust order intake underpinning future growth Backlog 62.1bn (+9%) 2

3 Key financials 9M16 (1) Like for Like* Sales 23,371 mn -7.0% -5.3% Slowdown of activity in Australia due to projects EBITDA 1,513 mn -6.3% -2.2% termination but sales keep on recovering in 3Q (+14% vs 1Q and +8% vs Q2) EBIT 1,119 mn +0.8% +6.6% Net Profit 570 mn -0.7% +2.4% Improved operating margins, particularly in HOCHTIEF Positive impact in 2015 of exceptional non-cash items Backlog 62.1 bn +9.1% +7.3% Growth across regions and activities * Adjusted by renewables and FX impact (1) According to IFRS 5, after the sale agreement reached in September, Urbaser s P&L has been reclassified as discontinued operations with restatement of the comparable period 3

4 Net Profit 9M16 mn 9M15 9M16 Variation Construction % Industrial Services ex renewables % Renewables contribution 6 0 Environment % Corporation Net Profit % Outstanding performance in HOT with improved margins, despite sales slowdown in Australia Strong impact of de-gearing process on financial expenses Corporation Net Income in 2015 includes exceptional non-cash profits from IBE shares which have been sold out in

5 Sales stabilizing despite temporary headwinds Sales affected mainly by activity lags in Australia and domestic activity slowdown 25, % CIMIC 9M % Domestic sales 23,371 9M16 Remaining international sales Activity lags in CIMIC affecting top line Sales reduction in domestic market offset by international activity increase 624 mn in Spain vs 847 mn international ex CIM Asia Pacífico 25% (-24%) América del Sur 6% (-1%) but recovering QoQ (+99%) África 1% España (-16%) 14% Resto de Europa (-5%) 8% América del Norte 46% (+6%) CIMIC Figures in mn Like for like variations 5

6 Sales stabilizing despite temporary headwinds SALES breakdown by activity ( mn) CONSTRUCTION INDUSTRIAL SERVICES ENVIRONMENT* 19, % 17,447 4, % 4,793 8, % 8,946 * Ex renewables +2.7% * Clece and SPL 1,129 1,160 9M15 9M16 9M15* 9M16 9M15 9M16 Affected by CIMIC top line decrease, Europe unrecovery and FX headwinds Rest of areas growing Affected by: MXN depreciation and MEX slowdown Spain slowdown Positive performance based on steady recovery of domestic economy 6

7 Improved operating efficiency EBITDA ( mn) EBIT ( mn) -4.5% 1,584 1, % Margin 6.5% 9M15* 9M16 Improved operating margins * Ex renewables 1, % +3.6% 1,119 Margin 4.8% 9M15* 9M16 Impacted by FX headwinds and topline temporary lags Positive impact of transformation process in HOCHTIEF Figures in mn Like for like variations and margins reducing overheads and capital intensity 7

8 De-gearing process continues paying off.enables drastic reduction in financial expenses and implicit cost of debt 5.43% 1, % * Ex Urbaser, annualized 3.74%* % % LTM 2016 Figures in mn Gross financial expenses Urbaser Implicit cost of debt 8

9 WC under control & disciplined CAPEX Deseasonalized Operating Working Capital variation ( mn) * Urbaser opwc Q evolution Ex Urbaser 1Q 2Q 3Q LTM *Ex Urbaser 380 (202) (1,052) (571) (873) Disciplined Working Capital management as part of transformation process CAPEX Evolution ( mn) % 229* -76% Capital intensity reduction as part of transformation process enhanced by Urbaser sale LTM *Ex Urbaser 9

10 Net Investments 9M16 Net Investments 9M16 89 mn (ex. Urb) 9M16 Net Regular Capex Net Project/Financial inv. Total Net inv. 85 mn CIMIC Construction 174 mn 384 mn treasury stock 559 mn contract mining 284 mn CIM acquisition Industrial Services 30 mn (47) mn (17)mn Environment (ex Urb) 13 mn 6 mn 19 mn Business activities 217 mn 343 mn 560 mn Corporation (470) mn IBE disposal (470) mn Net Regular Capex 217 mn (ex.urb) Urbaser Financial/Project Net Investments (128) mn 80 mn 10

11 Positive trend in FFO generation 9m15 9m Net interest paid 273 Net interest paid -40% 1, Net Operating CAPEX Other results & adj.* Taxes paid 1, Net Operating CAPEX Taxes paid 874-5% EBITDA Pre tax FFO (bf opwc var) 629 FFO (-119) EBITDA Pre tax FFO (bf opwc var) Op WC var 56 FFO Figures in mn +20% Op WC var * Dividends from JV & Associates, restructuring cost and adjustments mn 11

12 Successful agreement to sell Urbaser Key transaction figures Company profile Enterprise Value Value range 2,212 2,463 mn Sales FY15 1,634 mn 1.6 bn Sales Waste management 32% (-) Net Debt FY mn (-) Factoring FY mn (-) Minorities & value adj. 138 mn EBITDA FY mn Urban services 68% -4.9% Domestic 59% Equity Price PE ratio EV/EBITDA ratio 1,164 1,399 mn x x Net Profit FY bn 50 mn 8.1 bn Backlog 2.8 bn 1.6 bn Sales 1.0 bn +23.6% International 41% 0.1 bn Spain Rest Europe America Other 12

13 De-gearing process continues paying off Total indebtedness of the Group slashed Further reduction underpinned by Urbaser deconsolidation 2,5x ,6x AHS debt include 742mn from Urbaser 1,4x Deuda Neta / EBITDA ,8x sep.-14 sep.-15 sep.-16 sep.-16 PF Deuda Net Debt Neta Deuda Assets ligada Held a For Activos Sale Mantenidos Debt para la Venta 13

14 9m Net Debt evolution Net Debt Dec 2015 CF from Operations CF from investing activities SH s Remuneration FX, reclassif. &other adj. Net Debt Sep mn 26 mn 236 mn 424 mn 31 mn Op. CF (bf WC & CAPEX) opwc var Net CAPEX FCF discont. op. Financial Disposals Fin/Proj. Invest. Dividends & Treasury stock From continuous operations vs (119) mn 9m15 2,624 Includes 550mn IBE divestment 2,751 Cash inflow 1,147 Cash outflow mn 536 Includes CIM s 386 mn treasury &buyouts Dividend payments to ACS shareholders and minorities ACS & HOT treasury acquisition Includes: perimeter changes (Urbaser) FX impact adj. from IBE and others 31 Figures in mn 14

15 Robust order intake BACKLOG ( mn) and breakdown by geographies +9.1% 62,138 Asia Pacific 36% (7%) (+44%) Africa Spain 11% 10% Rest of Europe 8% 2% (-3%) (+5%) 56,975 9M15 9M16 (+10%) South America 6% North America 37% (+15%) Outstanding performance of the international commercial activity, particularly in America Positive impact of AUD ex. rate Strong backlog position reassuring future top line growth Yet activity lags remain, thus expecting to take off by late

16 Leading position in USA 128 mn C-470 Tolled Highway, Express Lanes, Segment 1, Denver, Colorado 54 mn UC Davis North Addition, office building, Sacramento, California 811 mn 100km of high speed railway, California 59 mn I-10 and SR 303L Estrella Freeway, Arizona 362 mn Harbor Bridge replacement project, Corpus Christi, Texas 68 mn *LTM Sales* 12.0 bn Sand Lake Road (SR 482), Orlando, Florida 56 mn Backlog 18.3 bn TOP US Construction Group in terms of revenues University of Michigan Clinical Pathology, Michigan 62 mn I-40 Business Winston- Salem, North Carolina Union Terminal Renov. & Rehabilitation, Museum Center, Cincinnati, Ohio 678 mn 136 mn 346 mn Long Island Rail Road (LlRR) Grand Central Terminal, New York 44 mn Throgs Neck Bridge, New York 62 mn Prince George s Community College in Largo, Maryland 103 mn Naval Academy's Center for Cyber Security Studies, Maryland Chesapeake Bay Bridge- Tunnel, Virginia +7% +23% +9% LTM YoY Sales growth (%) +21% +18% +19% LTM YoY Backlog growth (%) 16

17 Robust order intake BACKLOG breakdown by activity ( mn) CONSTRUCTION INDUSTRIAL SERVICES ENVIRONMENT +9.7% 51,801 47,217 8, % 8, % 1,748 1,608 9M15 9M16 9M15 9M16 9M15 9M16 Solid growth in North America & Asia Pacific Backlog recovery in Europe Despite MXN negative impact Double digit growth in Asia Pacific Increasing domestic and international backlog Positive impact of AUD New awards of EPC projects Like for like variations 17

18 Conclusions Transformation and de-gearing processes paying off supported by the sale agreement of Urbaser Increased FFO from continuous operations vs 9M15 underpinned by good operating performance and reduction of financial expenses Robust and diversified backlog especially in USA and Australia On track to achieve 2016 goals 18

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