ceo's presentation abertis' shareholders general meeting 2014
TRANSCRIPT
Reference shareholders: 57% !!
Free Float: 43% 90% Institutional
10% Retail
Capitalisation: ~€14 Bn
Employees: ~16 Bn
Shareholders: ~70 Bn
TOLL ROADS
Assets in 11 countries 8,300 kilometres 28 concessions
14,500 employees 90% income
TELECOMMUNICATIONS
Main Customers in 6 countries ~ 6,000 towers
7 satellites 1,500 employees
10% income
OverviewAbertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
Autovias Centrovias Intervias Vianorte Litoral Sul Planalto Sul Fluminense Fernao Dias R.Bittencourt !
Sanef Sapn Eurotoll Alis Aliénor ITS !!!!!
Acesa Aucat Invicat Aumar Iberpistas Castellana Avasa Aulesa Túnels Autema !
Elqui Rutas A.del Sol Los Andes Libertadores Central !!!!!
RMG Dartford Mersey
Newport Sakonnet
PortMann Bridge
GCO Ausol !!!!!!!!!
Coviandes Bet’eire
TOLL ROADS
Metropistas APR !!!!!!!!!
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions Overview
TELECOMMUNICATIONS
Terrestrial Retevisión Tradia Abertis Tower
Services:
Broadcasting Towering Smart Cities Radiocommunications
Satellite Hispasat
Services:
TV & radio broadcasting Digital TV IP Services Point-to-Point Networks
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions Overview
Investments: ≈ €600 M • €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
AcquisitionsAbertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
AcquisitionsAbertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
Hispasat: takeover
Acquisition of Telefónica and Yoigo towers
A growing neutral operator
+4,000 towers
Income 2014e: €200 M
7 satellites + 2 under construction
Investments: ≈ €600 M • €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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions Acquisitions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions Acquisitions
Technology and engineering
Managing concessional
contracts
Organisation and ICT
Benchmarking and cost management
Industrial role
DTLNewport
Port Mann Bridge
Mersey and DartfordRélance Plan
Unicat
Integration Efficiency plan
SAP
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
Allows to consolidate the role of the Group
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions Industrial role
The management of talent, competitive advantage
Since 2011
90%Covered by internal promotions
Since 2012
75%Executives in development actions
x5Since 2010
Executive abroad
Senior Management
-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%
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
2012
Toll roads88%
Telecom8%
Airports4%
Spain52%
France 39%
Chile6%
Others3%
2013
Toll roads90%
Telecom10%
Spain44%
France33%
Chile8%
Others1%
Brazil14%
Greater business focus & internationalisation
EBITDA
+24%
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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)Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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+
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
Integration
Efficiency
Optimising portfolio
Strengthening balance sheet
Objectives 2013
In 2013 our strategy is consolidated
VALUE CREATION
Sustainable dividends
Disciplined growth
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
x2
Concessions Kilometres Employees
Revenue (€Mn) EBITDA (€Mn)
x2 x1,3
x1,2x1,3
Integration
Industrial role in businesses integration
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
3,756
8,300
12,07315,934
3,7244,654
2,285 2,923
Initial objectives €Mn Current €Mn
2011 2012 2013 2014
65193
37 355
570101
163
230
456
733
Comparable progression, considering CPI and excluding programme costs.
Efficiency (€Mn)
Successful efficiency plan 2011-2014
Accumulated savings 2011-2014
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
x1,2 x 0,9
Strengthening balance sheet (€Mn)
Improved key balance ratios
Assets Net debt Net Debt/EBITDA
6.0x4.5x
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
23,83728,134
14,590 13,155
Accumulated cash flow applications 2011 - 2013
8,100
4,000
Financial charges
Sale of assets
Operations and efficiencies
Investments in growth
Organic investment
2,400
2,400
1,400
1,200
Reduction in net debt
700
4,100
Dividends
Taxes
Cash flow generation Cash flow application
Optimising the portfolio (€Mn)
Focus and internationalisation
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
2009 2010 2011* 2012 2013
422443
512538
565
Ordinary dividends (€Mn)
Sustainable dividend
In the last five years €3.28 Bn have been distributed
* Additional Extraordinary Dividend ≈ €800 M
2009 2010 2011 2012 2013
422865
2,177
2,7153,280
Accumulated dividends accrued (€Mn)
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
2009 2010 2011* 2012 2013
422443
512538
565
Ordinary dividends (€Mn)
Sustainable dividend
In the last five years €3.28 Bn have been distributed
* Additional Extraordinary Dividend ≈ €800 Mn
2009 2010 2011 2012 2013
422865
2,177
2,7153,280
Accumulated dividends accrued (€Mn)
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
+77%
+7%
31.12.1260
80
100
120
140
160
180
Graph adjusted by extraordinary dividends and bonus share issue.
31.12.09 31.12.10 31.12.11 31.12.13
37% increase in share price in 2013
value creation
Difference Abertis Vs. IBEX 35
70%2009-2013
abertisIBEX 35
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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%)
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014
Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014 Conclusions
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
Abertis today Milestones 2013
Results 2013
Assessment2013
Outlook 2014 Conclusions