Presentation to Investors. March 2010

Transcription

1 GrupoACS Presentation to Investors March 2010

2 Grupo ACS key figures Year 2009 Δ Revenues 15,606 mn +2.2 % EBITDA 1,458 mn % Net Profit 1,952 mn +8.1 % EPS % Net Debt 9,271 mn 0.9 % Backlog 29,507 mn +6.6 % Number of Employees 142, %, SPL has been reclassified as Assets available for sale 2

3 Main goals for 2010 Growththrough through internationalization Maintain market share in Spain Keep operating margins stable Deploy investments in capital intensive assets Generatesustainable value for shareholders 3

4 Internationalization targets Total international sales ,198 mn 14% of the total CAGR >23% International sales ,104 mn 26% off the total Backlog % 65% Spain Target 50% International Spain 50% Direct Presence Main areas of development 4

5 Construction key figures Revenue ,625 mn ,125 mn Var. 7.5% EBITDA 494 mn 459 mn 7.2% EBITDA Margin 7.5% 7.5% Revenues ,125 mn Backlog ,431 mn Construcion 39% Non Residential 12% Building 4% Residential Building Rest of Activities 61% Civil Works 84% International Revenues ,427 mn 23% of total International Backlog ,260 mn 37% of total 5

6 Construction: Spanish market overview Construction is Spain is suffering a significant slowdown Quarterly public tendering, million Evolution of GDP and Construction output, % of yearly variation 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Q1 2000Q3 2001Q Q3 2002Q1 2002Q3 2003Q1 2003Q Q1 2004Q3 2005Q1 2005Q3 2006Q1 Source: INE & Seopan Civil Works Building 2006Q3 2007Q1 2007Q3 2008Q1 2008Q3 2009Q1 2009Q3 15.3% 15.5% 14.1% 14.5% 13.6% 12.5% 10.0% 9.6% 8.1% 8.6% 9.0% 71% 75% 6.6% 7.1% 7.5% 6.5% 7.1% 8.7% 8.0% 7.5% 7.1% 7.4% 7.4% 6.3% 6.0% 6.7% 4.5% 1.8% 16.6% 12.8% 10.3% 10.8% 10.6% 10.4% 9.9% 7.0% 8.1% 8.3% 5.6% 3.4% 1.7% e 3.6% GDP Evolution Construction Evolution Weight of Construction on GDP Civil Works rely on stimulus plans and railway development in the short term, mainly from Central Government Building activity has reached floor, and there are no signals of recovery yet Non residential building will depend on regional governments funds, currently suffering the budget restrictions Measured as Gross Value Added. Civil il Works; 57 bn; 39% 9.7% Measured by Effective Output (including supplies, raw materials, professional services & licenses) construction decreases by 21.5% (Euroconstruct) to 145 bn Building; 88 bn; 61% 6

7 Construction internationalization strategy ACS Construction is focusing on US and Europe Construction international expansion: target countries and infrastructure investments planned* US&Canada >$ 300 bn per year US and Canada Huge stimulus plan to be implemented (ARRA) Approach via partnerships and d smallll acquisitions i iti Concessions market starting up Poland 17 bn per year Portugal 7.4 bn per year ACS Construction sales 09 > $900 mn Europe Backlog 09 > $ 3,800 mn Chile >$ 2.4 bn per year Chile and Argentina Argentina >$ 2.5 bn per year Long time presence Concessions development ACS Construction sales 09 > $ 300 mn Backlog 09 > $ 300 mn Poland to receive cohesion funds from EU Portugal: P t l highways hi h and d high hi h speed train being developed Rest of Europe through concessions ACS Construction sales 09 > 450 mn * not including stimulus plans Backlog 09 > 1,800 mn 7

8 Recent acquisitions in the Construction area Dragados has acquired 3 construction companies in the last 6 months Pol Aqua Pulice Picone ACS acquired last July 66% of the Polish construction company for 116 mn 2009 figures: Sales: 310 mn Backlog: 450 million Civil works and Industrial Services Phoenix based construction company acquired for c. 80 mn 2009 figures: Sales: 137 mn Backlog: 132 million Civil Works in Arizona, Utah, Nevada and California NY based construction company acquired for c. 87 mn 2009 figures: Sales: 176 mn Backlog: 542 million Tunneling, highways and hydraulic civil works These acquisitions increase the local lpresence of Dragados in Poland and US at very competitive prices 8

9 Construction: US and Canada presence Sales evolution in the US and Canada * 624 Euro million e Backlog evolution in the US and Canada * Euro million e Trans Texas Corridor Vancouver ACS presence in the US and Canada A30 Highway Montreal Montreal Sacramento Salt Lake City Toronto Secaucus Greenwich New York & White Plains Los Angeles Phoenix Construction Concessions Industrial Services Environmental Services Texarkana Dallas Austin Houston Raleigh Davies, FL (I 595) Miami NY subway projects Miami airport enlargement I595 Highway in Florida Puerto Rico * Include recent acquisitions, and refers to the total activity, including Industrial Services and Environmental Services 9

10 46 PPP projects on highways, railways, hospitals and other civil iilinfrastructures t Infrastructure concessions As of 31st of December 2009 # Total Investment ( mn) ACS investment Total highways (km) 2,717 11,723 1,104 Total Railway (km) 297 4, Public Facilities (m2) 233, Hospitals (# beds) 15, Total transfer stations (m2) 128, Total Parking lots 8, TOTAL 17,220 1,465 Concessions Keep focus on Greenfield projects: 253 mn invested in 2009 Iridium will attend to large bidding processes in Europe and US 10

11 Environmental Services key figures Revenue ,414 mn ,639 mn Var. +9.3% EBITDA 315 mn 341 mn EBITDA Margin 13.0% 12.9% +8.4% Revenues ,639 mn Environmental Services 17% Facility Management 10% Backlog ,457 mn Rest of Activities 83% Environmental Services 90% International Revenues mn 14% of total International Backlog ,466 mn 30% of total * Ports and Logistics not included 11

12 Environmental Services international expansion International sales to double in the coming 3 years Mexico UK South America France There are large projects in the US where we are bidding France will be the main driver of growth 12

13 Industrial Services key figures Revenue ,477 mn ,862 mn Var. +6.0% EBITDA 591 mn 680 mn EBITDA Margin 9.1% 9.9% +15.1% Revenues ,862 mn Rest of Activities Industrial 44% Services & Energy 56% Energy Projects 37% Backlog ,619 mn Industrial Maintenance 63% International Revenues % 2,297 of total mn 39% International Backlog ,599 of total mn 13

14 Industrial Services & Energy international presence Significant jobs awarded in % of total Mexico Primary energy > 500 mn US Control Systems 20 mn Centro America Networks & EPC projects 129 mn Venezuela, Peru, Colombia & Bolivia Specialized products and EPC projects > 300 mn 39% of total Uzbekistan CCGT plant 214 mn India & China Transmission lines and Railway systems > 200 mn Brazil Transmission lines > 200 mn Middle East and Northern Africa Energy Projects mn 14

15 Industrial Services & Energy: Mexico presence Sales 2009 in Mexico 585 mn Refineries Other International 25% 9% Monterrey Culiacán Aguascalientes 66% Spain Backlog 2009 in Mexico 521 mn Tampico Manzanillo Minatitlán Oaxaca Thermal electric plant refurbishment Project awarded in 2010 Offshore Other International 31% 8% Transmission i Lines 61% Spain 15

16 Renewables and energy projects update Energy Projects, Renewable Energy As of 31st of december 2009 Installed Capacity Attr. ACS % Wind, in operation, fully consolidation 1,041 MW 80% Wind, in operation, equity method 134 MW 33% Wind, total under operation 1,176 MW 74% Wind, under construction 288 MW 96% Thermosolar, under operation 150 MW 100% Thermosolar, under construction 200 MW 100% Wind, pipeline 1,452 MW 85% Thermosolar, pipeline 400 MW 100% Accumulated total investment as of December 31 st 2009 > 3.9 billion Non recourse debt (Project Finance) allocated = 29billion 2.9 Capex expected for the coming 3 years > 3.5 billion 16

17 Strategic investments Stake 12% One of the largest utilities in the world Renewable energy world leader ACS is a reference shareholder in Iberdrola Stake 25.8% World leader in concession operation ACS is the larger industrial shareholder ACS and Abertis complete the concession s value chain Stake 30% Most international contractor ACS is the industrial reference shareholder International collaboration opportunities Market value of ACS listed affiliates by Dec ,186 mn ACS listed investments are commonly valued at market prices and include holding discounts, when: Current market conditions imply a significant discount on fundamental value ACS does not plan to sell these assets ACS plays an active role in the companies where it invests, looking for long term shareholders value creation as it has been demonstrated in the past 17

18 Iberdrola A long term commitment with the industry Consolidated as a financial investment 4,471 million of non recourse debt Grupo ACS is the industrial reference shareholder of Iberdrola, owning 12% of the company Grupo ACS Expertise Value Creation Track Record First contractor for electric utilities in Spain with a 80 years experience in building, operating and maintaining electrical assets Deep footprint in Spain and relevant countries where utilities are present Long term understanding of the regulator Iberdrola s Excellence A World Leader First in class electric utility company by generation mix (with high entry barriers) Worldwide renewable energy generation leader Industry Attractiveness Good Momentum Sustainable & predictable growth in an industry with strong entry barriers and few players In a regulated sector with a forthcoming industry consolidation Strategic targets Focus Iberdrola s strategy in long term value creation for shareholders Reinforce Iberdrola s leadership in most profitable markets divesting non performing assets Provide credibility to markets and regulators for future consolidation opportunities in the industry 18

19 Abertis World leader as concessions operator Consolidated by equity method Grupo ACS founded Abertis and is the industrial reference shareholder holding 25.8% of the share capital Grupo ACS Expertise Industrial Greenfield Developer Leader in the PWF ranking published every year since 1994, with more than 60 concessional projects developed d International footprint in the most growing markets as US, Eastern Europe and Chile Abertis Excellence The leading company worldwide European concessions leader by market cap and number of projects Straight forward strategic vision on the development and operation of infrastructures Outstanding investment capacity Strategic targets Collaborate with Abertis in the development of large projects worldwide Continue offering ACS s mature greenfield concessions to Abertis when the project fits on its strategy Promote Abertis s investment plans and international expansion 19

20 Hochtief A worldwide contractor Consolidated by equity method 757 million of non recourse debt Grupo ACS holds 30% of Hochtief and plays a key role as the industrial reference shareholder in the company Hochtief s Excellence The most international contractor Well established in US, through Turner and Flatiron, with a growing presence in Civil Works activities Leader in the Australian and South East Asia markets through Leighton Strong presence in the Middle East through Turner, Al Habtoor Engineering and Hochtief International Significant experience in the development of greenfield concessions, in some of them partnering with ACS Strategic targets Hochtief s sum of the parts is higher than its market value Grupo ACS is the industrial reference shareholder, and is focused on creating value for all shareholders ACS supports local management approach There are extensive opportunities of collaboration in the development of international contracts in joint venture 20

21 Increased cash flow generation in 2009 Cash Flow from Disposal of 35.3% Cancellation of operating activities of Unión Fenosa UNF non recourse debt 1,652 mn 5,825 mn 2, mn 3,565 mn Cash hflow before investments 5,217 mn Source of cash Use of cash 21

22 Efficient use of the cash generated in 2009 Shareholders 1,119 mn Cash Flow before investments 5,217 mn Direct Investment 1,565 mn Corporate net debt reduction 2,271 mn Non recourse debt increase 2,953 mn Dividends 653 mn 2.05 per share from 2008 results Treasury Stock 466 mn 4.4% of share capital; 1.25% cancelled in AGM Others 262 mn Mainly taxes on capital gains Total Investments 4,518 mn E/s novation IBE Projects Acquisitions i i Oh Others 2,349 mn 1,467 mn 284 mn 418 mn Source of cash Use of cash 22

23 31 st of December 2009 Net Assets Working Capital (2,804) mn Fixed Assets 5,977 mn Strong financial structure Net Worth and Liabilities Net Worth 4,592 mn TOTAL NET ASSETS 15,269 mn Long term financial investments 9,352 Net Debt 9,271 mn Other non current assets 2,744 mn Other non financial liabilities 1,406 mn 23

24 Net debt situation as of 31 st of December mn Net Debt Operating activities almost free of debt 3,741 mn Non recourse debt Project Finance Renewables Infrastructure concessions Treatment tplants Maturity >10 years Cash flow generation capacity Total net debt 9,271 mn Non rec course ne et debt 8,969 mn 5,228 mn SPVs Iberdrola (12.0%) 4,471 mn Hochtief (29.99%) 757 mn 24

25 Long term committed reference shareholders Shareholders Structure Environmental Services Concessions Construction Industrial Services Energy Institutional Investors & Retail 34,7% CF Alba (March Family) 23,5% 1997 Stock Options 3,7% Iberostar (Fluxá Family) 5,6% Dec2009 Florentino Pérez 12,3% Environment & Logistics Concessions Other Board 1992 Construction Members & Related Shareholders Industrial Services 6,3% Energy CF Alcor (Mr. Alcocer & Mr. Cortina) 13,9% Start up of the project by Mr. Florentino Pérez. He is current Chairman and CEO. Presently holds 12.3% Merger with Ginés Navarro. CF Alba joins ACS. Presently holds 23.5% Incorporation of ONYX. CF Alcor joins ACS. Presently holds 13.9% Mr. M. Fluxà acquires a 5.6% stake of ACS Reference shareholders own 55% of the company, an investment that represents a large portion of their wealth Clear corporate governance: all core shareholders are represented in all the company s government bodies Top management fully aligned with shareholders interests: compensation package schemes include stock option plans * which are fully hedged but not financed through new share issues Shareholders return vs market size: during the last 2 years the company has bought and cancelled more than 11% of treasury stock, taking profit from the extraordinary low prices of the shares during the crisis As of today, Grupo ACS holds a treasury stock stake of 3.7% * Currently 3.7% of the share capital is committed to the several SO plans already started 25

26 EX w/ dividends IBE Average annual profitability IBEX + Div = 3,5% Creating value for shareholders ACS: leading value creation between 2000 and 2009 Value Creation between 2000 and 2009 according to Instituto de Empresa Business School (IE) Average annual ACS Million ACS profitability = 20% , Dec Dec IBEX w/ dividends ACS market cap at close (mn ) Dividends ACS ( mn) ACS shareholders value creation mn) Cap and Dividends ( ACS Market 26, , , Endesa Iberdrola Ferrovial , , Acerinox 1, Acciona 1, , , , Alba 2, , , FCC NH Hoteles Santander Bankinter Zeltia B. Popular 8, Gas Natural Repsol YPF BBVA Telefónica The net present value of all ACS shareholders cash flows between 2000 and 2009 accounts for 6,841 million 26

27 Conclusions: ACS is on the track to generate value Clear Strategy & Implementation Track Record Global Leadership Operational and financial efficiency Successful value creation history Reliable Businesses with Growth Opportunities Contracting business based on civil & industrial engineering know how Growing, reliable & recurrent activities Hidden value and growth opportunities available Focused, Talented & Committed People Entrepreneurship Sound technical skills Long term committed reference shareholders We look for fundamental long term value creation 27

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