presentation of the group - grupo acs · presentation of the group . july 2012 . key figures &...

The world’s leading infrastructure developer

Presentation of the Group

July 2012

Key figures & Global Strategy

Grupo ACS

The world’s leading infrastructure & concessions developer

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Engineering contractor and greenfield developer with annual revenues over €35bn

In the fields of civil and industrial engineering: developing civil works, energy, oil&gas, mining, environment and support services

Active in 5 continents with a stable presence in 50 countries, employing 162,000 people

Through a worldwide, decentralized and flexible structure of local leading companies

Focused on generating sustained shareholders value

Construction Environment Industrial Services

Group’s history In less than three decades Grupo ACS has become one of the largest infrastructure developers of the world

183 196 510 755 955 911 792 731 792 976 2.166 2.460 2.700 3.410 3.921 4.420 8.429

10.354 11.582 13.507 14.892 15.276 15.387 15.380

28.472

35.000

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012e

Sales evolution 1987-2012e (€ million)

4

Consolidated key figures 2011

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Turnover € 28,472 mn +98.7%

EBITDA € 2,318 mn +61.9%

EBIT € 1,333 mn +28.3%

Margin 8.1%

Margin 4.7%

Backlog (March 2012) € 67,919 mn 22 months

Recurrent Net Profit € 951 mn +8.8% Note: Hochtief fully consolidated since June 1st , 2011

Revenues breakdown as of 2011

6

69%

25%

6%

Construction € 19,802 mn

Turnover 2011 € 28,472 mn

Environment € 1,686 mn

Industrial Services € 7,045 mn

27%

12%

27%

33%

1%

America € 7,819 mn

Spain € 7,823 mn

Asia Pacific € 9,306 mn

Rest of Europe € 3,345 mn

ROTW € 179 mn

7,82 7,29

4,92

1,39 1,10 0,60 0,49 0,43 0,31 0,31 0,29

Spain Australia USA Germany México Poland Brazil Portugal UAE Canada France

Turn

over

by

coun

try,

201

1 €b

n

18%

16%

23%

43%

0%

Current backlog breakdown

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Backlog as of March 2012 € 67,919 mn

76%

11%

13%

Construction € 51,654 mn

Environment € 9,099 mn

Industrial Services € 7,166 mn

Spain € 12,198 mn

America € 15,705 mn

Asia Pacific € 28,960 mn

Rest of Europe € 10,671 mn

ROTW € 385 mn

A global leader in infrastructure development

Source: ENR Magazine, August2011. Data in US$ million Source: Public Works Finacing Magazine, October 2011.

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Private clients Administrations

Cont

ract

or

Conc

essi

ons o

pera

tor

Energy projects

Electricity

Oil & Gas PPPs

Transportation

Environment

Telecomm

Construction

Main areas of activity of Grupo ACS In the global infrastructure development industry

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Mining

Macroeconomic long term growth trends Infrastructures are macro growth engines

Advanced economies invest normally c. 5% of GDP

Emerging markets surpass 10% on GDP, led by China

They are a key tool for the social and economical development of any country

There are factors that clearly promote an investment trend in infrastructures

Multiply the effect of other investments

Increase productivity Promote employment

Developing or improving energy & resources infrastructures

Developing transportation networks

In the maintenance of their existing assets

Increase of income per capita

Demographic changes

Regulatory, environmental or technological changes

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Key markets in infrastructure development Current situation: plenty of opportunities

Asset renewal Energy & Resources

Electricity, Resources, transportation and social infrastructures

Maintenance Energy Convergence

Oil & Gas

Energy & Resources, huge transportation infrastructures

Energy & Resources Transportation Concessions

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• Limited public spending • Demanding governments • High per capita rent users • Stable regulatory frameworks • Strong financial markets • Sophistication:

New PPP models Availability payment Shadow tolls

Clean energy & Renewables

Environmental assets • Large investments in

maintenance & renewal of assets

Opportunities Challenges

Main characteristics

Private financing opportunities

Strong competence

Availability of capital intensive projects

Requires size and a strong local presence

Increasing demand

Less risk means less profitability

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Advanced economies

• Large energy and resources projects to be developed

• Private collaboration demand to provide: Technical capacity Financial resources

• Huge demographic changes

Opportunities Challenges

Inefficient subcontracting industry

Changing regulatory frameworks

Unstable Local currencies

Very strong demand

Lack of qualified local competence

Underdeveloped financial markets

Ethics and professionalism Users payment capacity

Growing & dynamic economies

Brazil, Mexico, India…

Obsolete or inexistent assets

Oil, gas, resources, transportation

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Emerging markets

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With a clear corporate strategy

With strong values and competitive advantages

With diversified, growing, sustainable and profitable activities and companies

How faces ACS this global industry?

ACS Corporate Strategy A long term industrial approach covering the main ACS’s corporate targets

Global Leadership Commercial coordination to achieve profitable activity growth

Operating Efficiency Promote global best practices

Financial Strength Take advantage of size and focus on keeping a solid balance sheet

Value Orientation Corporate culture totally aligned with shareholder’s profitability

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Global & Local leadership ACS covers the most important markets of the world with profitable, competitive and reputed companies. Size matters to attract resources, financing, talent and new projects.

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Top 3 in the US

Leader in Spain and Germany

Leading Industrial

player

Leader in Australia

World leader in mining and concessions

Commercial collaboration

General contracting leader, allows cross selling of Civil Works, Concessions and Industrial Services

Being an Industrial Services local leader allows for Mining opportunities

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ACS local strength promotes cross selling and profitable commercial collaboration opportunities worldwide

Industrial Services in Germany

Environmental Services in UK and France

Civil Works & Mining leader, focus on Industrial Services opportunities

Mining, Concessions, Civil Works and Industrial Services opportunities in Asia

Promotion of best practices and corporate values amongst Group’s companies

Risk management Technical excellence

Client focus

Operating efficiency

Decentralized & lean structure

Sour

ce: F

acts

et

10,3%

7,8% 7,1%

5,9% 5,6% 4,3% 4,3%

3,5% 3,2% 2,6%

Vinci Eiffage ACS FCC Bouygues Bilfinger Berger

Skanska Hochtief Balfour Beatty

Fluor Corp.

EBIT

mar

gin

2010

Convergence towards higher operating margins

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Financial strength

Grupo ACS keeps a solid financial structure

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Grupo ACS promotes a capital allocation policy to efficiently capture financial resources in a global market

< 3,0x

Net Debt / EBITDA 2012e

1.3x

Net Debt / Net Worth Mar-12

No significant refinancing needs until Nov 2014

Investment capacity Grupo ACS has invested in the last 5 years more than € 12 bn in infrastructure development activities

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Grupo ACS invests alongside clients in a wide range of civil works, energy, oil&gas and environmental projects around the globe

2.007 1.795 2.224 2.340

3.650

238

1.122

80 516

1.853

2007 2008 2009 2010 2011

Investments Disposals

Euro million*

* Investments and disposals from Grupo ACS’s operating activities (excluding Corporation’s investments)

20,3%

16,1% 15,9% 14,6%

10,6% 9,3% 8,7%

3,0%

ACS Fluor Skanska VINCI Bouygues Eiffage FCC Ferrovial

Profitability focus 20

12e

Retu

rn o

n Eq

uity

So

urce

: Fac

tset

, 1st

June

201

2

ACS targets to maintain its leadership as one of the world’s most profitable infrastructure developers

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22





Service culture

Technical capabilities

Entrepreneurship

Grupo ACS competitive advantages Efficient management of

resources Constant search of sustainable

and growing profitability Rigorous investment in

attractive business opportunities

Commitment orientation

Civil engineering Specialization in civil works

infrastructure development Large projects

management capability Development, construction

and management of concessions

Industrial Engineering Value chain integration:

engineering, development, procurement, construction and maintenance Specialized in large and

complex “turn key projects” Investment capacity in:

energy concessions, high voltage transmission lines and desalinization

Client Knowledge Flexibility and

adaptability Local presence

and global leadership for clients worldwide

Ethics and professionalism

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24





Grupo ACS areas of activity Technology-oriented Group with a decentralized operational structure

Industrial Services Construction Environment

Promotes Entrepreneurship Global Competitive Advantages

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Construction

ACS Construction activity Largest construction company of the western world focused in the development of infrastructures worldwide

Includes the contribution of several companies of the Group: Dragados (leader in Spain) Hochtief (leader in Germany) Leighton (leader in Australia) Turner & Flatiron (Top 3 USA) PolAqua (Top 5 Poland) Iridium (World leader in concessions development)

Develops highly sophisticated Civil Works, Mining and General contracting activities in 30 countries, with a technical team including 10,000+ engineers

ACS is the leading greenfield concession developer in the world, with a current portfolio of over 48 projects

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€ mn 2011 Var. 1Q12 Var.

Turnover 19,802 +247% 6,791 +374%

% Abroad 85.1% 88,9% .

EBITDA 1,210 +183% 396 +242%

margin 6.1% 5.8%

EBIT 449 +30.8% 96 +4.1%

margin 2.3% 1.4%

Backlog 50.336 +354% 51.654 +370%

% abroad 91.4% 92.7%

Net Debt 2,442 +100% 3,772 +143%

Revenues 2011

Construction activity: General contracting

Specialized en large contracts, ACS companies develop complex projects for clients worldwide

€ 16.3 billion

84%

16%

Abroad

Revenues In Spain

Top ranked companies in the most important markets for construction. Specialized teams developing concessions, PPPs,

tunneling Main areas of growth:

Australia & SE Asia, large civil works projects US & Canada, PPPs and infrastructure refurbishing Central Europe: convergence needs in civil works

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General Contracting

Construction activity: Contract mining

Leighton: world leader in a fast growing activity in emerging markets, specially Asia. Huge potential in South America, where its not present.

€ 3.5 billion Revenues 2011

Mining management and exploitation for third parties. Long term contracts with high visibility Capital intensive business Huge growth potential:

Australia, Indonesia, Mongolia, India, Africa Leighton might lean on ACS’s presence in South

America to explore a new market

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Mining Contracting

100%

Revenues Abroad

Promotion Financing Construction Ramp-up Operation

5 24 43

Construction activity: Greenfield Concessions

ACS is the leading greenfield concessions developer in the world, with more than 70 projects under way and close to 50 offers in course

* As of Dec 31st, 2011

Long term investment activity synergic with general contracting Worldwide opportunities, specially in 1st world Relies on ACS’s financial strength

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Concessions US&Can Spain

Other Countries

Greenfield development phase

€ 1.1 billion ACS Equity Investment*

Brownfield

Number of projects

Industrial Services

ACS Industrial Services Activity Industrial Services is a leading support services & EPC contractor with a decisive presence in emerging markets

Very strong presence in Latin America and Middle East, growing in Asia Pacific

With companies specialized in the development of energy infrastructures through turn key projects

Very strong capabilities in industrial maintenance services

Developing projects for oil, gas, electricity, renewables, power lines, industrial maintenance and high-speed rail

High technical, financial and environmental sophistication, with a workforce that includes more than 2,000 engineers

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€ mn 2011 Var. 1Q12 Var.

Turnover 7,045 -1.6% 1,830 -1%

% Abroad 48% 53%

EBITDA 907 +10.5% 220 +0.2%

margin 12.9% 12%

EBIT 828 +31.8% 207 +2.6%

margin 11.7% 11.3%

Backlog 6,875 +0.4% 7,165 +0.8%

% abroad 61% 64%

Cash position 835 +60.5% 889 +53.2%

ACS Industrial Services: Support Services

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ACS is a global player in the support services and industrial maintenance industry, as a supplier of utilities and energy companies


48% 52%

Abroad

Revenues In Spain

Includes three segments of activity: Networks: Maintenance services for electricity,

gas and water distribution assets Specialized products: Maintenance of power

plants, high speed railroad and transmission lines Control Systems: Support services for

municipalities like lightening and traffic lights management and road security

Support Services

ACS Industrial Services: EPC Projects

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ACS is a world reference in the Engineering, procurement and construction activities for utilities and oil&gas companies


52% 48%

Abroad

Revenues In Spain

Development of turn key projects Electricity generation projects: Power plants

installment, CCGTs & renewable energy Oil & gas facility projects (off-shore platforms,

refineries, etc) Growth potential in Central Europe, South

America, Asia and Australia Joint ventures with Hochtief and Leighton

EPC Projects

Environment

ACS Environment activity Waste management, treatment, recycling and urban services. A very visible, stable and profitable activity

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

Mainly in Europe, where Urbaser is a leader in the provision of urban services, especially in France, United Kingdom and Spain

Visibility and predictability of revenues due to long term contracts

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€ mn 2011 Var. 1Q12 Var.

Turnover 1,686 +11.6% 421 +0.4%

% Abroad 24% 22.5%

EBITDA 253 +6.7% 61 -3.9%

margin 15% 14.4%

EBIT 112 -10.3% 27 -13.5%

margin 6.6% 6.4%

Backlog 8,941 -7.5% 9.098 -5%

% abroad 37% 35.5%

Net Debt 1,124 -5.5% 1,053 -14.8%

Wrap up considerations (I)

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There are plenty of profitable opportunities • Transportation

concessions foster civil works activities

• Strong demand for natural resources make mining contracting a growing business

• Increasing demand for energy assets

Long term visibility: infrastructures are always demanded • In advanced economies to

keep competitiveness

• Existing infrastructures insufficient to promote development in emerging markets because

A coherent diversification generate business opportunities • Technical excellence in a

varied portfolio of activities facilitates serving client needs

• Strong local presence allows better knowledge of clients and quick reaction time

Wrap up considerations (II)

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Large investments

require sizeable

companies

With significant global financial muscle

With global technical

capabilities and resources

availability

With an efficient and balanced global risk

management

With local presence to serve clients

ACS size multiplies the Group’s financial strength

To become the partner choice: to choose and to be chosen

Wrap up considerations (III)

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To raise globally and efficiently

financial resources

To allocate capital

developing profitable

opportunities

With public clients

To compete for PPPs and large contracts that

require bonding capacity

With private clients

To play the role as the equity partner in the

project

Conclusions

Grupo ACS is prepared to face the future global infrastructure industry from a privileged position

ACS has become the leading infrastructure developer in the world: Through a wide array of operating activities developed by local leading

companies Focused on client needs and sustainable profitability

ACS long term strategy looks for global leadership, cultural & commercial integration with operating efficiency and financial strength

ACS promotes cash flow generation and value enhancing activities to achieve sustainable & profitable growth

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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

presentation of the group - grupo acs · presentation of the group . july 2012 . key figures &...

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