results presentation · results presentation apresentação de resultados 1º trimestre 2010 may24,...

1st Quarter 2010

Results Presentation

Apresentação de Resultados 1º Trimestre 2010

Results PresentationMay 24, 2010

Highlights

Key Financial Indicators

Turnover Performance


EBITDA Performance

Performance by Business Area: Construction, Concessions, Real Estate

Net Debt

Backlog

Outlook

1ST Quarter 2010 Results Presentation

HIGHLIGHTS

• Consolidated turnover suffered a slight decrease of 4% to €222.2mn

compared with the 1Q09(*), with the Construction and industry turnover

having a 5% decline;

• EBITDA margin had a positive evolution reaching 11.4%, slightly above

the 11.3% of 1Q09, with the Construction and industry area margin rising

to 7.3% from 6.5% in the same period of last year;


to 7.3% from 6.5% in the same period of last year;

• Financial results were in line with the previous year, in spite of the

average cost of debt decrease, influenced by the €/USD evolution;

• Group’s net income amounted to €1.4mn versus €2.2mn in 1Q09, also

pressured by a increase in the effective tax rate from 13.7% to 35.2%;

• Backlog rose 4% compared with 31 Dec 2009, reaching €1,829mn,

including the HSR Poceirão-Caia stretch, awarded in last Dec and signed

between the Portuguese State and the concessionaire ELOS on May 8.

(*) 1Q09 results were restated taking into consideration IFRIC , interpretation 12.


KEY FINANCIAL INDICATORS

Consolidated (€mn) 1Q 20091Q 2009

proforma1Q 2010 YoY%

Turnover 226.8 231.4 222.2 -4%

EBITDA 25.5 25.8 25.3 -2%

EBITDA margin 11.3% 11.2% 11.4% 0.2 pp

Recurrent EBITDA (*) 22.0 22.3 25.3 13%

Recurrent EBITDA margin 9.7% 9.6% 11.4% 1.7 pp

D&A + Provisions -9.2 -9.0 -8.9 -2%


(*) Excluding in the 1Q09, €3.5mn of non recurring gains related with the constitution of “Auto-estradas XXI, Subconcessionária Transmontana, SA”,

counterbalanced by €3.5mn of financial costs.

D&A + Provisions -9.2 -9.0 -8.9 -2%

EBIT 16.3 16.8 16.4 -2%

EBIT margin 7.2% 7.2% 7.4% 0.1 pp

Net financial expenses -14.0 -14.0 -14.2 1%

EBT 2.3 2.8 2.2 -19%

Taxes -0.4 -0.4 -0.8 107%

Effective Tax Rate 16.4% 13.7% 35.2% -

Net Profit 1.8 2.2 1.4 -34%

Net debt 636.2 636.2 721.5 13%


TURNOVER PERFORMANCE

50

100

150

200

250

300

Concessions

Real Estate

Construction and 50

100

150

200

250

300

Others

Mozambique

US


• Consolidated turnover declined 4% versus 1Q09’s figure, on a

comparable basis, strongly influenced by adverse weather conditions and

some delays in 2 relevant works due to processual issues;

• 55% of turnover was non domestic, with the Angolan activity registering

a positive evolution in this quarter compared with 1Q09.

0

50

1Q09 2Q09 3Q09 4Q09 1Q10

Construction and

Industry0

50

1Q09 1Q09

prof.

2Q09 3Q09 4Q09 1Q10

Angola

Portugal


EBITDA PERFORMANCE

9.7% 9.6%

7.1%

10.2% 9.9%

11.4%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

5

10

15

20

25

30

Recurrent EBITDA

(€mn)

Recurrent EBITDA


• Consolidated recurrent EBITDA margin had a positive performance in

this quarter, supported by the Construction and industry margin

improvement (+0.8pp to 1Q09);

• Changes in the accounting of the construction phase of the concessions,

had a positive impact in the Construction area profitability, but a negative

one in the Concessions margin: 67.7% in 1Q09 to 58.0% (recurrent basis).

(*) Excluding in the 1Q09, €3.5mn of non recurring gains related with the constitution of “Auto-estradas XXI, Subconcessionária Transmontana, SA”. Excluding in the 3Q09, €2.4m of costs related with the

liquidation of a company in the Real Estate business area.

0.0%

2.0%

0

1Q09 1Q09 prof. 2Q09 3Q09 4Q09 1Q10

Recurrent EBITDA

margin (%)


CONSTRUCTION AND INDUSTRY

Construction and Industry

(€mn)1Q 2009 1Q 2010 YoY%

Turnover 214.7 204.1 -4.9%

EBITDA 14.0 14.9 6.0%

EBITDA margin 6.5% 7.3% 0.8 pp


• Turnover decrease of 5% mainly explained by: (i) Changes in the

accounting of the construction phase of the concessions, (ii) adverse

weather conditions experienced in the quarter and (iii) lower activity level

in some countries, like Mozambique and Guinea (with the conclusion of

significant works);

• The Angolan market continues to display a significant dynamism:

turnover increased by 9% compared with 1Q09;

• In spite of the turnover slight contraction , EBITDA had a positive

evolution, with margin improving to 7.3% from 6.5% before.


CONCESSION S

• Turnover had a quite positive evolution in the trimester, benefiting from

Concessions (€ mn) 1Q 2009 1Q 2010 YoY%

Turnover 12.0 16.4 36.3%

Recurrent EBITDA (*) 8.14 9.5 16.6%

Recurrent EBITDA margin 67.7% 58.0% -9.7 pp


• Turnover had a quite positive evolution in the trimester, benefiting from

a €4.8mn contribution from AEXXI, although below expectations due to

the mentioned processual issues;

• Recurrent EBITDA also had a positive performance: +16% compared

with 1Q09. However, as mentioned, contribution from AEXXI to EBITDA

has immaterial , putting some pressure on the area’s margin;

• SCUTVIAS, Concessions’ main contributor, had a 3% growth in turnover

and +2.7pp margin improvement, reaching 94.8%, with traffic continuing

in a recovery trend, compared with the 1Q09 (ADT rose 1.3%).

(*) Excluding in the 1Q09, €3.5mn of non recurring gains related with the constitution of “Auto-estradas XXI, Subconcessionária Transmontana, SA”.


REAL ESTATE

Real Estate (€mn) 1T 2009 1T 2010 Var. anual %

Turnover 0.1 1.6 n.m.

EBITDA 0.36 0.9 156.0%

EBITDA margin 662.0% 56.2% -605.8 pp


• This business area strategy is now focused on the development of

projects in the Angolan market;

• Main projects: “Casas de Gaia” (in Portugal) is currently being

commercialised, project Imokandandu is being prepared and “Residências

de Talatona” are under construction, these last two projects both in

Angola.

• Real estate turnover had a positive evolution compared with 1Q09, with

Soarta (Luis de Camões and Santo Amaro) registering the sale of some

fractions.


NET DEBT

636

663

646

676

722

580

600

620

640

660

680

700

720

740

Net debt


• Net debt by the end of 1Q10 was €722mn, of which €284mn non

recourse debt, a 7% increase compared with year-end 2009;

• Net debt increase was mainly due to: financing needs of a real estate

project in Angola, some degradation of the average collection time and

equity investments in some concession projects being developed.

(*) Annualised EBITDA based on 1Q 2010’s figure.

580

1Q09 2Q09 3Q09 4Q09 1Q10

2007 2008 2009 1Q 2010 (*)

Net debt / EBITDA 8.7 x 7.0 x 7.5 x 7.1 x


BACKLOG

€m %

Portugal 788.7 43%

Angola 479.7 26%

US 86.2 5%

Israel 240.0 13%

Mozambique 72.6 4%

Romania 28.0 2%

S. Tomé e Principe 18.3 1%


• Backlog reached €1,829mn, growing 4% compared with year-end 2009,

already including the contribution of Soares da Costa’s stake in the

construction of the HSR stretch between Poceirão and Caia.

• International markets represent 57% of the group’s backlog.

S. Tomé e Principe 18.3 1%

Costa Rica 30.1 2%

Other 85.4 5%

Total 1,829.0 100%


OUTLOOK

Strong focus on international markets:

• New markets/ countries (Abu Dhabi but also Libya, Oman e Argel);

• Reinforce of its presence in the US and Central American markets;

• Expansion of activity in Africa, namely at Equatorial Guinea.


The Concessions business area is a key piece from the Group’s growth

Guidance 2010:

Consolidated turnover € 970m

Consolidated EBITDA €98m

Strategic Plan is currently being

analysed and should be presented

up to 3Q 2010


GRUPO SOARES DA COSTA SGPS SAPublic Company

Head Office: Rua de Santos Pousada, 220


Head Office: Rua de Santos Pousada, 220

4000-478 Porto

Share Capital € 160.000.000

Commercial Registry Office of Porto: corporate body and

register nr. 500 265 753

www.soaresdacosta.pt

Representative for Market Relations

António Frada

T: +351 22 834 22 43

Investor Relations

Rita Carles

T: + 351 21 791 3236 | + 351 22 834 1217

[email protected]


results presentation · results presentation apresentação de resultados 1º trimestre 2010 may24,...

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