Abertis Overview Presentation April 2016
Who are We? Our Strategy Value Creation Outlook for this Year Annex
Who are we? Outlook for Who are We? Our Strategy Value Creation this Year 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
Who are We? Outlook for Who are We? Our Strategy Value Creation this Year 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
Who are we? Outlook for Who are We? Our Strategy Value Creation this Year Company Highlights Strong Results and Cash Flow EBITDA Composition (2015) € 4.4Bn of revenues in 2015 (+5% L-f-L) By Business By Market € 2.7Bn of EBITDA in 2015 (+5% L-f-L) € 3.2Bn of discretionary FCF in 2015(+8% L-f-L) Telecom and Others 9% Hispasat 6% Chile 6% Solid Balance Sheet Spain 34% Toll Roads Brazil 94% 13% € 26Bn assets under management € 2.2Bn cash and equivalents € 12.6Bn net debt (4.7X EBITDA) France 38% BBB/BBB+ rating (S&P/Fitch) A focused company with a ~ € 14Bn Market Cap geographic diversification A Rock-Solid Company 5
Who are We? Our Strategy Value Creation Outlook for this Year Annex
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year Key Pillars Our road to value – 2015-2017 Strategic Plan Shareholder Focus Efficiencies Growth remuneration Industrial Model to Intensify sector Current portfolio and DPS increase and capture opex and focalization M&A bonus shares capex savings Contract Amendments A pure toll road € 400MnTarget 10% CAGR operator cash savings 2015-2017 Acquisitions with capital discipline 7
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year Focus In 2011 Abertis initiated a strategic plan 2010 focused on toll roads Disposals (airports, car parks, Acquisitions logistics, non core stakes) 5 non-synergic business units Presence in 8 countries (toll roads) towers Non-controlling stakes 47% of EBITDA outside Spain towers towers 2015 Puerto Rico towers 2 business units Latest developments towards becoming a pure toll road operator Presence in 12 countries (toll roads) Controlling shareholder of the main Cellnex IPO Value crystallization above expectations operations ~ € 2.7Bn capital gains 66% of EBITDA outside Spain Airports full exit (MBJ: € 177Mn) Attractive sale IRRs Consolidating Our International Leadership in Toll Roads 8
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year Efficiencies Efficiency Plan I Efficiency Plan II 2011-2014 2015-2017 Initial Target Yearly cash savings € 570Mn cumulative € 140Mn cash savings 2015E 2016E 2017E Target up to € 400Mn cumulative Final outcome cash savings € 741Mn cumulative cash savings 2nd efficiency plan Liability management programs 9
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year “Golden Rules” for any project Group’s best practices Industrial Industrial fees to Abertis Role Core investments with professional minority investors Financial IRR 250-450 bps over Ke (risk-adjusted) Sustainable capital structures by project Discipline Sustainable dividend policy Dividends Financial Corporate Investment Grade rating Non-recourse debt by project Strength 10
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year Growth – Capex in Existing Asset Base Latest developments M AIN P ROJECTS I MPACTS Increased EBITDA backlog Full control and consolidation of Chilean assets Full consolidation Autopista del Sol and A. Los Libertadores (from 50% to 100% stake) – Jul/15 Autopista Central (from 50% to 100% stake) – Jan/16 Addition of ~ € 220Mn revenue and ~ € 160Mn EBITDA (2016) Plan de Relance SANEF (+2 years) and SAPN (+3 years and 8 months) extensions € 590Mn investments over the next 5 years Attractive IRR Potential traffic upsides with new capex Túnels de Barcelona i Cadí Full control and full consolidation Stake increased to 50.01% Addition of ~ € 41Mn EBITDA (2016) ~13% equity IRR (nominal post tax) State Concessions extensions (Autovias and Intervias). Incremental investments (projects improvements) in the current capex plan Federal concessions tariff increases higher than inflation (average of 19% increase for 2016) Arteris buy-out (pending) Increase of EBITDA backlog and new financing strategies No Competition, Knowledge of the Asset, Relationship with Grantor, High Cash Flow Visibility 11
Strategy Outlook for Who are We? Our Strategy Value Creation this Year Growth – M&A Existing Markets New Markets Generates efficiencies and synergies Apply industrial know-how T akes advantage of knowledge of the country Export best practices Includes primary and secondary markets 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
Our Strategy Outlook for Who are We? Our Strategy Value Creation this Year Shareholder Remuneration € Mn DPS 0.76 0.73 0.69 Share buy-back:Tender offer achieved to buy 6.5% capital. 8.25% treasury stock (Post-Tender Offer) 10% CAGR 2015-2017 ( € 2.1Bn dividends for the period) Value Oriented Shareholder Remuneration 13
Who are We? Our Strategy Value Creation Outlook for this Year Annex
Value Creation Outlook for Who are We? Our Strategy Value Creation this Year How We Do It Tangible results: • Double- digit IRR’s in recent deals ( Autopista • IRR ~250-450 bps over Ke (risk-adjusted) Central, Plan de Relance) Financial • Sustainable capital structures discipline • Projects lost for not meeting minimum hurdle rate • Realistic business plans (Chicago Skyway, Indiana Toll Road, QML) • Appointment of key management • Efficiency program to capture ~ € 400Mn by 2017 • Implementation of best practices Industrial Value Creation • Optimization of integrated assets: Model • Management and industrial fees Arteris, Chilean assets and Puerto Rico • Synergies and economies of scale • EBITDA backlog increase • Expansion of the current portfolio • Extensions in Arteris State Concessions and French • Debottlenecking assets Investments • Tariff increases/Extensions • Tariffs increases in Arteris Federal roads • Future traffic upsides with increased road capacity • French Plan de Relance: 2.5 yrs average extensions Relationship • Long term partnership • Iberpistas, Acesa with • Proven track record grantors • Paquet Vert: 1 yr • Investment grade Rating • Rating from Fitch (BBB+) and S&P (BBB) Financial strength • Optimization of capital structure • Adequate cash position and undrawn credit lines • Disposal of non core assets • Focus on toll roads: doing what we know best • Significant investments despite current macroeconomic Long term and focus • We take a hundred year view of our business environment (Arteris capex and minorities buy-out) • We don’t look spot price 15
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