2016 Results presentation March 1 st 2017
Executive Summary 1. Positive 2016 results Net Profit € 751 mn +3.5% 2. 2012-2016 transformation process Operating improvement EBIT margin +30 pb 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% 18% 36% 25% Excellent geographical positioning 2016 – Result Presentation 2
Key operating figures 2016 Var. 15/16 Var. PRO-FORMA* Sales € 31,975 mn -2.7% -4.0% EBITDA € 2,023 mn -2.6% -5.5% EBIT € 1,445 mn +6.0% +1.7% Net Attributable Profit € 751 mn +4.3% +3.5% € 66,526 mn +11.5% Backlog +12.9% 2016 – Result Presentation * Eliminating renewables assets and FX impact 3
Key financial figures 2016 Var. 15/16 € 1,214 mn -53.7% Net Debt € 340 mn -28.4% Net financial expenses € 2.44 +3.7% EPS Share evolution and return for shareholders 32 € +11.1% 30 € TSR (Total Shareholder Return) 15.4% 28 € 26 € DPS (Dividend per Share) € 1.152 24 € 22 € 20 € DY (Dividend yield) 3.8% 18 € 2016 – Result Presentation 4
Geographic diversification Var. 15/16 € 31,975 mn Sales 2016 26.366 -4.0% 46% 21% € 14,669 mn € 6,910 mn Country Sales 2016 (€ mn) United States 12,225 38.2% 5,096 Australia 15.9% 4,293 Spain 13.4% Hong Kong 1,602 5.0% 1,394 Mexico 4.4% Canada 1,050 3.3% 941 Germany 2.9% 26% 649 Saudi Arabia 2.0% Poland 492 1.5% 397 Indonesia 1.2% Brazil 372 1.2% € 8,342 mn 1% 364 Chile 1.1% 362 United Kingdom 1.1% 6% Peru 322 € 286 mn 1.0% 253 Portugal 0.8% Rest 2,165 6.8% € 1,768 mn TOTAL 31,975 100% 2016 – Result Presentation 5
Sales breakdown CONSTRUCTION -4.4% Asia € 2,335 mn € 25,319 mn (-24.0%) € 24,217 mn Australia € 5,069 mn Spain (-15.9%) € 8.946 € 7.303 € 1,194 mn mn mn 10% (-12.7%) 21% 5% +3.3% South America € € € 400 mn Rest Europe (-13.5%) 16.914 2% 8% 16.373 € 2,087 mn Sales mn mn (-5.3%) € 24,217 mn 2015 2016 • Impact from sales slowdown in CIMIC (termination of large LNG projects) 54% • CIMIC shows signs of recovery (+17% 2H vs 1H) North America € 13,131 mn (+7.8%) • Strong growth in the US market (+8.5%) 2016 – Result Presentation 6
Sales breakdown INDUSTRIAL SERVICES Spain Divestments renovables € 1.710 mn Africa (-21.1%) € 284 mn (+75.0%) -3.0% € 6,501 mn 27% € 54 mn € 6,256 mn 4% Rest Europe Asia Pacific € 419 mn € 938 mn € 6.447 € 6.256 (-2.0%) 7% (+51.2%) Sales 15% mn mn € 6,256 mn 2015 2016 25% 22% • Strong growth in Asia, which represents 15% of the sales, mainly in Saudi Arabia, Japan and UAE (United Arab Emirates) North America South America € 1.538 mn • 73% of the sales outside Spain (+4.9%) € 1.369 mn (-11.1%) (-1.9%) • Impact from the domestic activity slowdown and the € /MXN Exchange rate 2016 – Result Presentation 7
Sales breakdown SERVICES Rest Europe € 87 mn (41.6%) +2.2% 7% € 1.538 € 1.505 mn mn Sales € 1,538 mn Spain € 1.908 mn 2015 2016 (+0%) 93% • 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 2016 – Result Presentation 8
Operating results - EBITDA CONSTRUCTION INDUSTRIAL SERVICES SERVICES * Ex renovables -2.3% € 1,438 mn € 1,405 mn -3.0% € 649 mn € 630 mn +4.9% +37.8% € 78 mn € 612 mn € 74 mn € 444 mn 2015 2016 2015* 2016 2015 2016 Margin Margin Margin Margin Margin Margin 5.7% 5.8% 10.0% 10.1% 4.9% 5.0% • • Affected by the downturn in Affected by: • Slight margin increase in CIMIC (i) MXN depreciation Clece • Margin EBITDA ex-CIM (ii) Slowdown in support improves by 90bp up to 3.5% services in Spain 2016 – Result Presentation 9
Net Profit € million 2015 2016 Var. Net Profit Construction 304 311 +2.2% Net Profit Industrial Services (1) 314 305 -3.0% Net Profit Services 73 84 +14.9% Net Recurring Profit from activities 691 699 +1.2% Renewable energy assets contribution 6 0 Corporation 28 51 Net Attributable Profit 725 751 +3.5% (1) Not including the contribution from the renewable assets sold in 2015 2016 – Result Presentation 10
Operating Cash Flow Cash outflow Interests Interest Cash Inflow received and payments other Adjustments and and other Tax financial other revenue/cost financial Payments income derived from the expenses transformation € 159 mn € 532 mn process € 171 mn € 82 mn EBITDA 2016 +20% FFO 2016 € 2,023 mn Funds From Operations before WC variation and CAPEX FFO 2015 € 1,397 mn € 1,162 mn 2016 – Result Presentation 11
Free Cash Flow from Operations Debtor increase / cash outflow Operating Working Capital variation Credit increase / cash inflow - € 21 mn HOCHTIEF ACS ex HOT € 264 mn € 285 mn Operating Reduction in the FFO 2016 CAPEX average payment Substantial € 332 mn period in Dragados Funds From improvement in Operations FCF 2016 before WC HOT America Positive evolution in variation and Industrial Services CAPEX Net funds from despite Mexico operating € 1,397 mn activities € 1,045mn 2016 – Result Presentation 12
Net Operating CAPEX breakdown Net operating CAPEX € 332 mn Construction Industrial Services Services € 277 mn € 18 mn € 36 mn Investments Divestments Investments Divestments Investments Divestments € 377 mn € 100 mn € 40 mn € 4 mn € 22 mn € 4 mn Dragados € 90 mn Services 6% Industrial Services 11% HOCHTIEF € 55 mn CIMIC 40% CIMIC € 132 mn Dragados 27% HOCHTIEF 16% 2016 – Result Presentation 13
Net Financial and Project Investments breakdown Net Divestments € 854 mn Net Investments in concessional assets Net Financial Divestments € 16 mn € 870 mn Investments Divestments Investments Divestments € 131 mn € 975 mn € 115 mn € 1,845 mn • Urbaser sale* € 1,144 mn Disposal Construction € 33 mn Net Investment • CIMIC Transaction € 623 mn Net Investment • Sedgman/Devine Industrial Services € 17 mn Investment € 87 mn Net Divestments • UGL Investment € 370 mn • NextGen Disposal € 122 mn • Treasury stock € 287 mn Investment • Iberdrola € 471 mn Disposal • Others Net Investment € 122 mn * Not including € 20 mn from the dividends distributed in mid year 2016 – Result Presentation 14
Net Debt Evolution Funds from Other Adj. F/X, UGL Urbaser Net Debt Net Debt operations Net financial SH remuneration perimeter Acquisition Divestments Dec 2016 Dec 2015 (FFO) investmenrs and other € 979 mn funds collected from the sale € 731 mn Net Debt deconsolidation 1,045 Net Debt / 472 € 326 mn EBITDA = 0.6x dividends € 131 mn 2,624 treasury stock 1,710 98 € 370 mn share acquisition 457 € 102 mn Net Debt incorporated 1,214 317 2016 – Result Presentation * 15
Drastic de-leverage Net Debt / 2016 EBITDA = 0.6x -75% 4.952 4.235 781 3.722 685 593 2.624 541 -54% 1.214 202 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Project Finance 2016 – Result Presentation 16
Net Debt structure breakdown by activity INDUSTRIAL CONSTRUCTION SERVICES CORPORATION SERVICES € 6,300 mn Market value of listed subsidiaries as of 31/12/2016 € 2,179 mn Net Cash position € 1,214 mn € 319 mn Group’s Net € (586) mn € (701) mn Debt 2016 – Result Presentation 17
Significant net financial expenses reduction 2015 2014 2016 5.43% Implicit cost of debt 633 4.53% 3,70% 475 65 -28% 340 677 39 410 301 -44 NET FINANCIAL EXPENSES Related to debt/cash Others 2016 – Result Presentation 18
Financial expenses breakdown evolution 2015 2014 2016 959 -25% 121 699 73 173 115 526 75 46 89 68 17 592 -24% 462 352 R/ to AHS Bonding & guarantees Other financial expenses* R/ to Gross Debt (Assets Held for Sale) *Bank fees and other debt restructuring associated costs, Derivative instruments costs, Commercial discount and factoring 2016 – Result Presentation NOTE: Data ex Urbaser 19
Strategic consolidation of the business model Key 2016 business acquisitions • Mineral processing: A$ 379mn sales • Price: A$ 118 mn Takeover • Strategic rationale: Extension of services in the 100% contract mining sector to strengthen the • EV/EBITDA: 4.9x current positioning • Industrial Services: A$ 1.9bn . A$ 4.9bn • Price: A$ 516 mn Takeover backlog. 6,800 employees • EV/EBITDA: 7.3x 100% • Strategic rationale: Activity diversification • Contract mining: : A$ 347 mn sales. A$ 1.5bn • Price: A$ 138 mn backlog. 1,529 employees Takeover WIP • Strategic rationale: Operating sinergies with • EV/EBITDA: 3.4x 100% Thiess 2016 – Result Presentation 20
Recommend
More recommend
