abertis shareholder's general meeting 2014 - press conference presentation
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TRANSCRIPT
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
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
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%
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
2013 milestones
EfficiencyFocus
World leader in toll roads
Geographic diversification
and Size
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%
Prudent management of the balance
Debt/EBITDA 4.5x
Total Debt 13,155M€ -7%
Investment Grade S&P: BBB Fitch: BBB+
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
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
Castellet Castle Mediterranean Biosphere Reserves
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
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
-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%
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
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)
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+
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
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
Integration
Efficiency
Optimising portfolio
Strengthening balance sheet
Objectives 2013
In 2013 our strategy is consolidated
VALUE CREATION
Sustainable dividends
Disciplined growth
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
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
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%)
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
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