abertis shareholder's general meeting 2014 - press conference presentation
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TRANSCRIPT
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Appointment of Ms. Susana Gallardo Torrededia
More independent members
More women on the Board
Implementation of best practices in corporate governance
Changes to the Board
Fewer Board members
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Turning point of the cycle
Spain and Europe
Progress towards
Banking Union
1ECB prepared
to provide unlimited
intervention
2Starting to clean up financial
institutions
3Companies recovering
competitiveness
4
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GDP FORECAST 2014
Source: IMF WEO January 2014
World GDP From 3.0% (2013) to 3.7% (2014)*
Asymmetric development of the crisis
2.8%
1.0%1.7%
5.4%
7.5%
2.3%
4.5%
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Situation in Spain
Structural reforms
Incomes policiesBroadening tax bases / reducing tax burden
Performance of Public Administrations
Narrow margin for reducing spendingCuts in public investment due to deficit and debt
Taking advantage of PPPs
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2013 milestones
EfficiencyFocus
World leader in toll roads
Geographic diversification
and Size
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Business development
+23.6%EBITDA 2,923 M€ (comparable+1.8%)
Net Profit 617 M€ (comparable +7.4%)
Income 4,654 M€ (comparable +0.5%)
+25.1%
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Prudent management of the balance
Debt/EBITDA 4.5x
Total Debt 13,155M€ -7%
Investment Grade S&P: BBB Fitch: BBB+
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80
95
110
125
140
Generating value
Free float
43.41%Average annual return per shareholder 04-13* +16%
* Includes dividend, bonus share issue and revaluation
Revaluation abertis 2013
+37% !Revaluation IBEX 2013
+21%
Stock market progression 2012-13 (base 100 - 31/12/12)
abertisIBEX 35
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Ordinary dividend
0.33 on account
(paid in November 2013)
Shareholder return
565 M€ (+5%)
1x20 Bonus share issue
0.33 supplementary
(to be paid on April the 8th, 2014)
0.66 €/share
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Castellet Castle Mediterranean Biosphere Reserves
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Investments: ≈ €600 Mn • €4.1 Bn from 2011
Attractive reinvestment
has acquired a 16.4% stake in
gaining control of the company for
€172,500,000July 2013
12% Equity IRR
has acquired 4,227
towers for
€385,000,000August 2013
13% Equity IRR
Divestments Investments
has sold a 3% stake in
for
€182,000,0001T 2013
has sold its 90% stake in
for
€835,000,0002013
EV/EBITDA 2013E of 12,4x
Divestments 2013: ≈ €1 Bn• €4 Bn from 2011
Generating funds to reinvest
Acquisitions
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Hispasat: takeover
Acquisition of Telefónica and Yoigo towers
A growing neutral operator
+4,000 towers
Income 2014e: €200 Mn
7 satellites + 2 under construction
Investments: ≈ €600 Mn • €4.1 Bn from 2011
Attractive reinvestment
has acquired a 16.4% stake in
gaining control of the company for
€172,500,000July 2013
12% Equity IRR
has acquired 4,227
towers for
€385,000,000August 2013
13% Equity IRR
Investments
Focus, internationalisation and industrial role
Acquisitions
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-3.3% -3.8%
-1.2%
-3.3%-2.1%
0.3%1.6% 2.1%
1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13
5.2%
3.0%
6.1%5.5%
3.8%4.5% 4.0%
1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13
3.8%
8.8%7.3%
10.4%
6.4%8.2% 8.1
7.5%
1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13
7.4%
Activity
-9.1% -9.1%
-11.2%-12.2%
-8.4%-9.6%
-2.6%-0.8%
1T12 2T12 3T12 4T12 1T13 2T13 3T13 4T13
Toll fares: +2.9% Traffic: -5.2% Tolls fares: +1.9% Traffic: +0.6%
Tolls fares: +3.6% Traffic: +3.9% Tolls fares: +3.5% Traffic: +7.8%
Growth in telecommunications revenue: 3.6%
Average toll fares growth: 3.1%
Average traffic growth: 1.5%
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New investments
2012 gains
Extraordinary deductions 2012
4,143511
2,665258
P&L account
€ Mn
Income 4,654 +25%
Operating expenses -1,731 +28%
Gross Margin (EBITDA) 2.923 +24%
Depreciation -1,203 +31%
Operating margin (EBIT) 1,721 +19%
Financial result -729Equity-accounted income 37
Result before tax 1,029 -24%
Corporate tax -330Attributable to minority interests -130Discontinued operations 49
Net profit 617 -40%
Comparable net profit +7%
vs 2012
Substantial improvement in margin and growth in earnings
Global incorporation Brazil and Chile
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Increased cash flows, maintaining dividend policy and investment
2,923
Accounting EBITDA
729
Financial cost
330
Tax
246
Non cash-floweffects
764
Current Investments Dividends
547
Minoritaries
146
FreeCashflow
161
Generated funds (€Mn)
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Average cost: 5.1%
Average maturity: 5.5 años
Non-recourse: 62%
Fixed rate: 82%
Airports Eutelsat
Hispasat Towers
Net debt (€Mn)
14,130
Dec 2012 Free Cash Flow
Divestments
-161-1,017
Acquisitions
575
Exchange rate and other
-371
13,155
Dec 2013
Net
deb
t /
Ebitd
a
5.7x
4.5x
Reduction of net debt €1 Bn ~ (-7%) in a context of growth
Rating: S&P BBB, Fitch BBB+
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Financing needs are covered up to end of 2017
€1.5 Bn issued in bonds
Corporate Business
Financial strength (€Mn)
6,590
Available Lines
Corporate treasury
3,512
3,078
Debt maturity schedule
1,329 1,469
1,948 1,817
2,224
1,3661,207
1,927
435
2,615
6.563
Available liquidity
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A solid balance of more than €28 Bn
3,0781,671
23,385
6,590
5,311
16,233Gross financial debt
Assets Liabilities
Long-term assets
Current assets
Treasury
Net equity
Other creditors
Balance sheet (€Mn)
13,155 Net debt
14,000 Market value
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Integration
Efficiency
Optimising portfolio
Strengthening balance sheet
Objectives 2013
In 2013 our strategy is consolidated
VALUE CREATION
Sustainable dividends
Disciplined growth
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Golden rules
In order to continue creating value
Improved profitability in current perimetre
Forecast investments above €1.3 Bn in 2014 (35% in Spain)
Growth and progressive internationalisation with financial discipline
Consolidation of industrial role in the projects
Financial solidity: investment grade rating
Sustainability of dividends policy
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has acquired a 6% stake in
gaining control of the company for
€32,200,000January 2014
Path to control
Recent takeover operations
has acquired a 9% stake in
gaining control of the companies for
€18,000,000February 2014
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Traffic
-5.6%
-9.1%
1T11 1T12 1T13 Jan-Feb 14
-8.4%
1.5%
ADT
1T10
-4.2%
+3.76%
-3.31%
1T11 1T12 1T13 Jan-Feb 14
-2.06%
3.4%
ADT
+1.22%
1T10
Encouraging two first months in Spain and France
Positive trend continues in Brazil (4%) and Chile (6%)
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Conclusions
Achievements in 2013• Company has become more international, bigger and more efficient
• Balance has been strengthened• Positive developments in the share price
• Consolidation as world leader in toll roads
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Conclusions
Achievements in 2013• Company has become more international, bigger and more efficient
• Balance has been strengthened• Positive developments in the share price
• Consolidation as world leader in toll roads
Good outlook for 2014• More favourable macroeconomic environment
• Increasing impact of efficiencies• Solid liquidity for growth
• Maintaining dividend policy