OVERVIEW PRESENTATION. June 2016

Transcription

1 OVERVIEW PRESENTATION June 2016

2 Our Strategy Value Creation

3 Who are we? Our story Abertis is the leading international group of toll-road operators. We manage thousands of kilometers of high quality, high capacity roads around the world. Our top priority is the safety of our drivers. We are continually investing in technology and smart engineering to make sure our customers have a smooth experience using our roads: safe, comfortable, fast and convenient. We have grown by being good partners to governments: we are committed to the long term, and we deliver a high quality product. Our profits come from operating the roads, not from speculating on public services. We take a hundred year view of our business. We bring together financial capability and industrial expertise: we have the capacity for large-scale financing, and we have the know-how to manage infrastructure. We want to be part of the solution to public problems associated with increasing road travel, such as congestion and climate change. As the global leader in our sector, we aim to set standards for the industry. Nobody is better placed than Abertis to set the pace on quality and innovation. 3

4 Who are We? Company Highlights The World Leader in Toll Roads Assets in 12 countries ~7,600 km under management 30 fully consolidated concessions Electronic Tolling Technology services worldwide and a reference in the satellite industry Presence in Europe and Latin America 7 satellites 57% of Hispasat 4

5 Who are We? Company Highlights Strong Results and Cash Flow 4.4Bn of revenues in 2015 (+5% L-f-L) 2.7Bn of EBITDA in 2015 (+5% L-f-L) 3.2Bn of discretionary FCF in 2015(+8% L-f-L) Solid Balance Sheet (Q1 2016) 27Bn assets under management 1.7Bn cash and equivalents 13.7Bn net debt (4.5X EBITDA) BBB/BBB+ rating (S&P/Fitch) ~ 14Bn Market Cap EBITDA Composition By Business Hispasat 6% (Q1 2016) Toll Roads 94% Chile 13% Brazil 11% By Market Telecom and Others 12% Q1 EBITDA growth = 8% L-f-L A focused company with a geographic diversification Spain 28% France 36% A Rock-Solid Company 5

6 Our Strategy Value Creation

7 Our Strategy Key Pillars Our road to value Strategic Plan Focus Efficiencies Growth Shareholder remuneration Intensify sector focalization Industrial Model to capture opex and capex savings Current portfolio and M&A DPS increase and bonus shares A pure toll road operator 400MnTarget cash savings Contract Amendments Acquisitions with capital discipline 10% CAGR

8 non-synergic business units Presence in 8 countries (toll roads) Non-controlling stakes 47% of EBITDA outside Spain Our Strategy Focus In 2011 Abertis initiated a strategic plan focused on toll roads towers towers Acquisitions Disposals (airports, car parks, logistics, non core stakes) Q towers Puerto Rico towers 2 business units Presence in 12 countries (toll roads) Controlling shareholder of the main operations More than 70% of EBITDA outside Spain Latest developments towards becoming a pure toll road operator Cellnex IPO Value crystallization above expectations ~ 2.7Bn capital gains Airports full exit (MBJ: ( 177Mn) Attractive sale IRRs Acquisition of Autopista Central Fully consolidated (100% stake) Consolidating Our International Leadership in Toll Roads 8

9 Our Strategy Efficiencies Efficiency Plan I Initial Target 570Mn cumulative cash savings Efficiency Plan II Yearly cash savings 140Mn 2015E 2016E 2017E Final outcome 741Mn cumulative cash savings Target up to 400Mn cumulative cash savings 2nd efficiency plan Liability management programs 9

10 Our Strategy Golden Rules for any project Industrial Role Group s best practices Industrial fees to Abertis Core investments with professional minority investors Financial Discipline IRR bps over Ke (risk-adjusted) Sustainable capital structures by project Dividends Sustainable dividend policy Financial Strength Corporate Investment Grade rating Non-recourse debt by project 10

11 Our Strategy Growth Capex in Existing Asset Base Latest developments MAIN PROJECTS Full control and consolidation of Chilean assets Autopista del Sol and A. Los Libertadores (from 50% to 100% stake) Jul/15 Autopista Central (from 50% to 100% stake) Jan/16 Plan de Relance 590Mn investments over the next 5 years Attractive IRR Túnels de Barcelona i Cadí Stake increased to 50.01% ~13% equity IRR (nominal post tax) IMPACTS Increased EBITDA backlog Full consolidation Addition of ~ 220Mn revenue and ~ 160Mn EBITDA (2016) SANEF (+2 years) and SAPN (+3 years and 8 months) extensions Potential traffic upsides with new capex Full control and full consolidation Addition of ~ 41Mn EBITDA (2016) Incremental investments (projects improvements) in the current capex plan Arteris buy-out (approved by the CVM)-Scheduled for 17 May State Concessions extensions (Autovias and Intervias). Federal concessions tariff increases higher than inflation (average of 19% increase for 2016) Increase of EBITDA backlog and new financing strategies Metropistas Implementation and operation of new tolling gantries One time up-front payment in the amount of $100Mn to the PRTA Subsequent deferred payment in the amount of $15Mn. 10-years extension of the concession contract from 2051 to 2061 Increase Metropistas revenue share (DTL) Competitive Processes, Bilateral Agreements, Brownfield or Yellowfield, Only Toll Roads 11

12 Our Strategy Growth M&A Existing Markets New Markets Generates efficiencies and synergies Takes advantage of knowledge of the country Includes primary and secondary markets Apply industrial know-how Export best practices Increase geographic diversification A proven track record Focus in brownfield projects in countries with solid legal framework Competitive Processes, Bilateral Agreements, Brownfield or Yellowfield, Only Toll Roads 12

13 Our Strategy Shareholder Remuneration Mn DPS Share buy-back:tender offer achieved to buy 6.5% capital. 8.25% treasury stock (Post-Tender Offer) 10% CAGR ( 2.1Bn dividends for the period) Value Oriented Shareholder Remuneration 13

14 Our Strategy Value Creation Annex

15 Value Creation Who are We? Financial discipline IRR ~ bps over Ke (risk-adjusted) Sustainable capital structures Realistic business plans Tangible results: Double-digit IRR s in recent deals (Autopista Central, Plan de Relance) Projects lost for not meeting minimum hurdle rate (Chicago Skyway, Indiana Toll Road, QML) Value Creation How We Do It Industrial Model Investments Relationship with grantors Appointment of key management Implementation of best practices Management and industrial fees Synergies and economies of scale Expansion of the current portfolio Debottlenecking Tariff increases/extensions Long term partnership Proven track record Efficiency program to capture ~ 400Mn by 2017 Optimization of integrated assets: Arteris, Chilean assets and Puerto Rico EBITDA backlog increase Extensions in Arteris State Concessions and French assets Tariffs increases in Arteris Federal roads Future traffic upsides with increased road capacity French Plan de Relance: 2.5 yrs average extensions Iberpistas, Acesa Paquet Vert: 1 yr Metropistas: 10 yrs extension Financial strength Investment grade Rating Optimization of capital structure Rating from Fitch (BBB+) and S&P (BBB) Adequate cash position and undrawn credit lines Long term and focus 15 Focus on toll roads: doing what we know best We take a hundred year view of our business Disposal of non core assets Significant investments despite current macroeconomic environment (Arteris capex and minorities buy-out) We don t look spot price

16 Value Creation Our Business Model Opex committee Industrial model Back-office integration Competition and procurement via online auction Synergies Opex Revenues Tariffs Traffic 30 different contracts models Wide range of readjustments mechanisms 50 yrs of market trends knowledge Traffic studies know-how Proprietary tolling technology and expertise (free-flow, ETC, manual, ticketing) Senior team Organization simplification Focused on efficiency Benchmarking and cost management Centralized Corporate services Management Capex Capex committee Outsourcing with competition and electronic auctions Brownfield and yellow fields Engineering intelligence Pavement labs Periodic road maintenance Strategic local partners (industrial and financial) Negotiation with grantors Social responsibility initiatives Institutional relations Historical partners for the infrastructure sector Partnerships Financials Capital Market access Liability management Strong cash position and approved credit lines Risk management and hedging Investment grade ratings Know-how and Expertise Built over 50 Years This Model Differentiates Us 16

17 Value Creation Investments EBITDA Replacement and Portfolio Extension A shortening concession life? 2015 duration = 2011 duration! Toll Roads Portfolio Duration (based on proportional EBITDA backlog) 19 yrs - 4 yrs + 4 yrs 19 yrs 2011 Portfolio Duration Time Investments 2015 Portfolio Duration Investments have fully offset 4 years of time elapsed main toll road investments Metropistas Acquisition (45%) Autopista Los Andes Acquisiton (100%) Autopista Los Libertadores Acquisiton (41.4%) Autopista del Sol Acquisition (41.4%) Arteris Acquisiton Túnels de Barcelona i Cadí (35%) Arteris Tag Along Offer (Increase Stake) C-32 and C-33 expansion capex Metropistas to reach 51% stake Rutas del Pacifico to reach 100% stake Autopista Central to reach 50% stake Autopista del Sol to reach 100% stake Autopista Los Libertadores to reach 100% stake Plan de Relance Túnels de Barcelona i Cadí to reach 50.01% stake Autopista Central to reach 100% stake Metropistas investments =10 years extension + ~3Bn of organic expansion capex Abertis Continues To Add more Backlog Than The One It Loses Through Time 17

18 Value Creation Partners Other consortium partners in projects GS Infrastructure Partners (GSIP) Strong Track Record Managing Partnerships 18

19 Value Creation Financial Strength Net Debt EBITDA 4.5x 5.8x 4.4x 4.5x Liquidity 5.2Bn 2011 Q Bn consolidated cash 3.5Bn undrawn Group credit lines Net Debt (Q1 2016) Total: ~ 13.7Bn at HoldCo: S&P Rating changed to Positive Outlook Rating S&P BBB (Positive outlook) Rating Fitch BBB+ (Stable outlook) ~ 4.5Bn Discretionary Free Cash Flow Yield ~12% 19 Discretionary Free Cash Flow: Post tax, finance and maintenance capex

20 Value Creation Discretionary Cash Flow & Upsides Tunels Efficiencies Traffic LM s Tax rates Autopista Central New assets Capex compensation Upsides post 2016 PIL Capex compensations Minorities buy-out Traffic upsides De-risking Recurrent Discretionary CF CF 2015 Abertis Today Discretionary Discretionary CF CF Upsides Capex for years Resolution of legal cases Contract amendments New capex programs Capex for years M&A Extensions Significant Value Creation Potential There is Upside 20

21 Value Creation Acquisition of Autopista Central Example Chile s premium toll road asset: Highest ADT in the country 2031 expiration 61 km crossing the center of Santiago Free-flow and dynamic tolling Attractive equity IRR: ~13% local (Acquisition price: 948Mn for 50% of Equity) Conservative traffic assumptions No synergies priced-in 141 km km 2036 Abertis Chilean assets (length and maturity) Abertis Autopistas Chile 133 km 2019 Abertis 100% 100% 100% 100% 100% 100% 229 km km % 100% 61 km 2031 Impact on Abertis: ~ 220Mn Revenues ~ 160Mn in EBITDA Net Debt: Price paid + ~ 400Mn net debt consolidated Upside from implementation of best-in-class industrial know-how (synergies and efficiencies) Smart Growth in the Existing Asset Base 21

22 Who are we? Our Strategy Value Creation

23 2016 Outlook From a Strong 2015 to a Promising 2016 Strong 2015 results Positive traffic performance A year of significant non-recurrent effects Record net profit of 1,880Mn Solid L-f-L growth Derisked balance sheet Good progress on Strategic Plan Continued traffic recovery Promising 2016 outlook Clear cash flow upsides not priced in today s share value Value-creating investment commitments Attractive and tangible growth pipeline with financial discipline We Deliver Our Commitments: There is Only Upside! 23

24 2016 Outlook Traffic Assumptions ADT: 0.0% ADT: -2.5% ADT: +1.5% ADT: +3.5% ADT: +4.0% ADT: +1.8% 24

25 2016 Outlook Key Expectations at Current Perimeter & FX Revenues Driven by solid traffic growth and tariff increases ~ 4.7Bn EBITDA New efficiency programs begin to show ~ 3.1Bn Net Debt Investing for growth ~ 14Bn 25

26 2016 Outlook Growth xx% Growth within the Existing Asset Base M&A Pipeline Capex program for 2016 Others Satellites AG-1, Amazonas 5 and Hispasat 1F ~ 1,000Mn Western Europe Italy (A4 exclusivity agreement) 2 Projects under study Americas 3 projects under study Potential new capex on existing asset base: > 3Bn (visibility within the next 2 years) Brazil (PIL) potential tariff increases Chile (extensions) Puerto Rico (extensions) Argentina (extensions) 26

27 Our Strategy Value Creation Annex

28 Annex Annex: Toll Roads Overview Europe Spain #1 Operator 1,559 Km Direct Management EBITDA 2015: 0.9Bn Stake: 100% France #3 Operator 1,761 Km Direct Management EBITDA 2015: 1Bn Stake: 52.5%

29 Annex Annex: Toll Roads Overview Brazil & Chile Brazil #1 Operator (in Km) 3,250Km Direct Management 9 concessions fully consolidated EBITDA 2015: 0.35Bn 51% of Participes en Brasil (69% of Arteris) Chile #1 Operator 771 Km Direct Management 6 concessions fully consolidated in 2016 EBITDA 2015: 0.2Bn Stake: 100%

30 Annex Annex: Q Results Income Statement MN 2015* Q1 2016** L-F-L*** (Q1 16 VS. Q1 15) Revenues 4,378 1,082 +8% Redundancies Operating Expenses -82-1, EBITDA Comparable EBITDA 2,692 2, % Depreciation Amortization of revalued assets (PPA) Provisions , EBIT % Cost of debt Other financial results Share of profit of associates Profit before taxes -1, Income tax Minorities Discontinued operations (mainly Cellnex) , Net Profit 1, % * The 2015 figures are net from the AP-7 traffic guarantee impacts while during 2014 AP-7 contributed 198Mn to revenues ** Q results are presented net of provisions for the AP-7 traffic guarantee. ***L-F-L CHG (Q1 16 vs. Q1 15). Q results have been restated to reflect the Cellnex IPO and the start-up of the IFRIC 21 accounting rule. 30

31 Annex Annex: Q Results Cash Flow Statement CF ( MN) 2015 Q CHG (Q1 16 VS. Q1 15) EBITDA 2, % Financial Result Income tax expense Adjust. Non cash effects -1, , Gross operating cash flow 3, % Operating capex Discretionary cash flow 3, % Dividends Payments to minorities Free cash flow II 2, Expansion capex organic Net Free cash flow 1,

32 Annex Annex: Q Results Balance Sheet BALANCE ( MN) 2015 Q CHG Non-current assets 22,114 24, % Current assets 3,625 3, % Assets held for sale 0 0 Total assets 25,739 27, % Shareholder s equity 5,349 5, % Non-current liabilities 17,253 18, % Current liabilities 3,137 3, % Liabilities held for sale 0 0 Total equity and liabilities 25,739 27, % 32

33 Annex Annex Abertis Shareholding Structure Shareholding Structure Previous Structure (Sep 15) Current Structure Criteria Caixa (24.1%) Criteria Caixa (22.7%) Free Float (52.7%) Grupo Villar Mir (8.7%) CVC (7.1%) Grupo Villar Mir (16.1%) Free Float - Other (57.8%) Capital Group (5.1%) Blackrock Inc (3.0%) Lazard Asset Management (2.8%) Total Free Float (68.6%) 33

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