Presentation to Investors · This document contains forward-looking statements on the intentions,...
Transcript of Presentation to Investors · This document contains forward-looking statements on the intentions,...
The world’s leading infrastructure developer
September 2013
Presentation to Investors
Why Grupo ACS?
2
Unique global contractor
Clear industrial strategy
Reinforced financial structure
Attractive valuation
Unique global contractor
3
Engineering contractor and greenfield developer with 2012 revenues over € 38 bn & current backlog c. € 70 bn
In the fields of civil and industrial engineering developing
Civil Works Contract Mining Energy, Oil & Gas Industrial Support Services Environment
Construction Environment Industrial Services
Unique global contractor
4
Through a worldwide, decentralized and flexible structure of local leading companies
Employing 170,000+ people, including 14,000 engineers
Active in 5 continents with stable presence in 50+ countries
15%
11%
34%
39%
1% Spain
Asia Pacific
Africa
Rest of Europe
6M13 Sales by geo area
America
Clear industrial strategy
5
Strengthen global leadership Increase profitability
World leading contractor and infrastructure
developer
Reinforce ACS as unique global contractor with stable presence in all the significant markets
Support growth in profitable markets
Strengthen the balance sheet reducing debt
Widespread corporate values & best practices
Put in place a set of strategic initiatives in all the companies of
the Group
Corporate Targets
Source: Engineering News Record, August 2013
Clear industrial strategy
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Leadership
Top ranked companies locally
Leaders by areas of activity
In growing markets
Operating capacity
14,000 engineers
Highly specialized activities and long
experience
Globality: resources in all markets for all
activities
Corporate values
Entrepreneurship
Client service
Profit orientation
Risk Control
Based in our competitive advantages
Areas of activity: Construction
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Construction
ACS is the largest construction company of the western world focused in developing infrastructures globally
Sales 12 €29.7 bn
EBITDA 12 €1,995 mn
Current Backlog €53.7 bn
Develops state-of-the-art construction activities such as Civil Works, Contract Mining and General Building activities in 30 countries, with a technical team including 10,000+ engineers
ACS is the leading greenfield concession developer in the world (Equity invested > € 1.1 bn)
5%
11%
33%
51%
0% Spain
Asia Pacific
Africa
Rest of Europe
America
6M13 Sales by region
54%
16%
20%
10% Civil Works
Mining
Gen. Building
Others
Sales
Concessional assets to complement public
spending
Growth drivers
Growth opportunities: Construction
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Asset renewal Concessions
Transportation and social infrastructures
Maintenance Convergence
Resources & transportation infrastructures
Resources Transportation Concessions
Advanced economies to invest c.2% on GDP per
year
Emerging markets have large requirements in
new assets & resources
Expected world economic growth will
require new infrastructures
Areas of activity: Industrial Services
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Industrial Services is a leading support services & EPC contractor with a decisive presence in emerging markets
Sales 12 € 7.0 bn
EBITDA 12 € 904 mn
Current Backlog € 7.4 bn
Specialized in the development of energy infrastructures through turn key projects (EPC)
Support services to provide industrial maintenance
Promote, finance and develop renewable energy projects
43%
8%
42%
2% 5%
Spain
Asia Pacific Africa
Rest of Europe
America
6M13 Sales by region
Industrial Services Support Services
EPCs
Generation
52% 43%
5%
Sales
Growth drivers
Growth opportunities: Industrial Services
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Energy requirements worldwide
Key countries reshuffling primary
energy capacity
Maintenance activities
New markets for ACS as North America and Asia
Pacific
Energy, renewables, oil and gas, maintenance
Oil and gas, electricity
Maintenance, renewables, high tension Oil and gas,
electricity
Gas, water, electricity New assets
Areas of activity: Environment
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Waste management, treatment, recycling and urban services. A very visible, stable and profitable activity
Sales 12 € 1,7 bn
EBITDA 12 € 241 mn
Current Backlog € 8.7 bn
A world leader in design, construction and operation of waste treatment plants, a capital-intensive activity that requires a strong technological and financial capacity
The Group currently operates over 300 facilities, including energy recovery plants, biogas production, composting, transfer, pre-treatment and landfills
66%
15%
16% 0% 3%
Spain
Asia Pacific
Africa
Rest of Europe
America
6M13 Sales by region
Environment
Urban Services
Waste Treatment
Logistics
29%
64%
7%
Sales
Growth drivers
Growth opportunities: Environment
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State-of-the-art technology to develop
treatment plants
Very competitive prices in Urban Services
Cross selling opportunities with
other areas of activity
High quality services demanded by
population
Waste treatment plants
Urban services and landfills
Urban services and waste treatment plants
Waste treatment plants
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Reinforced financial structure: Successful deleverage process over LTM
ACS ex HOT debt
6.769 7.332
3.788 3.647 3.999
1.810 1.882
1.164 2.341 1.966
8.579 9.214
4.952 5.988 5.965
jun-12 sep-12 dec-12 mar-13 jun-13
HOT AG Debt Total Net Debt
Reduction of € 2.6 bn ACS ex HOT
€ 2.8 bn
HOT € 0.2 bn
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Reinforce financial structure: debt reduction under way
Assets sold not yet collected
Assets under sale processes
Cash flow generation
Hochtief Airports, sold in May
Cash= c. € 1.1 bn
Hochtief Services, sold in June
Cash= c. € 250 mn
Hochtief real estate
Energy assets
Concessional assets
Working capital requirements to be reduced in 2H13
Cash flow from operating activities growing
Attractive valuation: Sustainable free cash flow yield
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(1) Source: FACTSET as of 2nd September 2013 (2) As of 30th June 2013, excluding Assets held for sale (3) Leveraged free cash flow excluding HOCHTIEF
Consensus 13e1
Intrinsic value >
€ 30/share
Sales € 38.5 bn EPS 2.3 €
Successful financial deleverage
Current Net Debt < 2x EBITDA2
Fundamental background
Strong business profile EPS growth prospects 2012-15
Solid cash flow generation
13e FCF ACS Activities3 > € 600 mn
The world’s leading infrastructure developer
ANEXXES
1H/13 KEY FIGURES
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Key figures 6M13
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Recurrent Net Profit** € 310 mn -7.5% -6.7%
Sales € 19,121 mn +1.5% +3.6%
Net Profit € 357 mn n.a.
Backlog € 69,786 mn -11.9% -4.5%
* Excluding f/x impacts (Changes of perimeter only adjusted in the backlog) ** Excluding extraordinary results, Abertis and Iberdrola contribution
EBITDA € 1,545 mn -2.1% -0.2% Margin 8.1%
EBIT € 850 mn +2.3% +3.7% Margin 4.4%
20 months
Var. Comp. Var.*
76%
19% 5%
Grupo ACS Sales 6M13
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Construction € 14,602 mn (+4.4% comp.)
Environment € 897 mn (+4.4% comp.)
Industrial Services € 3,641 mn (+0.5% comp.)
Total Sales € 19,121 mn (+3.6% comp.)
* Not included in the graph, € (18) million from Holding/Adjustments
15%
11%
34%
39%
1%
Grupo ACS Sales 6M13
America € 6,403 mn
Spain € 2,949 mn
Asia Pacific € 7,519 mn
Africa € 206 mn
Rest of Europe € 2,045 mn
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International Sales € 16,172 mn +8.2% comp. (85% of the total) Industrial Services
€ 2,063 mn (+3.4%c.) 56.7%/total Construction
€ 13,807 mn (+8.3%c.) 94.6% /total Environment
€ 302 mn (+54.1%c.) 33.7%/total
15%
17%
24%
43%
1%
Grupo ACS Backlog by 30th June 13
America € 16,747 mn
Spain € 10,255 mn
Asia Pacific € 30,342 mn
Africa € 588 mn
Rest of Europe € 11,853 mn
20
International Backlog € 59,531 mn -2.7% comp. (85% of the total) Construction
€ 50,441 mn (-4.4%c.) 93.9% /total Environment
€ 3,721 mn (-7.2%c.) 42.9%/total Industrial Services
€ 5,369 mn (+23%c.) 72.6%/total
6M13 EBITDA Analysis
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€ 1,578 mn
6M12
€ 1,545 mn
•AUD/EUR forex rates impact
•Activity reduction in Spain
•Gross margins convergence
€ (88) mn
-8.6% -2.1%
Construction 6M13 Industrial Services
€ 28 mn
+6.1%
• EPC international activity growth
• Cost reduction measures
Environment
+12.1%
• Change of mix towards waste treatment
€ (33)mn
64%
28%
8%
60%
9%
31%
Holding Adj. € 12 mn
€ 15 mn
f/x effect € (29) mn
6M13 Recurrent Net Results
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6M13 € million 6M12
Net ordinary contribution IBERDROLA 20 49
Holding overheads (17) (20)
Net ordinary contribution ABERTIS 0 44
Holding net financial results & others (77) (71)
Net Profit 357 (1,233) n.s.
Recurrent Net Profit 310 335 -7.5%
Construction Net Profit 120 138 -13.3%
Industrial Services Net Profit 237 227 +4.4%
Environment Net Profit 46 45 +1.7%
Net capital gains and other extraordinary 27 (1,662)
Others 1 15
€ 4,952 mn € 1.952 mn€ 2.286 mn
€ 3.057 mn € 2.936 mn € 2.936 mn € 5,965 mn
€ 334 mn
€ 770 mn
€ 491 mn € 612 mn€ 30 mn
Grupo ACS - Net Debt 31/12/12
Cash flow from operating activities
Regular CAPEX Investments in Projects
Disposals Dividends & Others
Grupo ACS - Net Debt 30/06/13
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Cash Outflow
Cash Inflow
1H13 Net debt evolution
€ 470 mn from NEXTGEN sale
Mainly mining equipment
Concessions and energy projects
The world’s leading infrastructure developer
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