ACS Results Presentation 1H16

1H 2016
Results Presentation
July 29th, 2016
Results Highlights
1
2
3
4
5
Sales stabilization despite market headwinds
Sales slowdown in Australia but recovering
Improved operating efficiency
EBIT € 897mn
L-f-L (+60 bp)
De-gearing process paying off
Net financial expenses € 190mn (-38%)
Positive trend in LTM Operating CF
Net FFO € 1.3bn (+21%)
Robust order intake underpinning future growth
Backlog € 69.6bn (+3%)
2
Key financials 1H16
Like for Like*
Sales
€ 16,387 mn
-8.2%
-5.3%
Slowdown of activity in
Australia due to projects
termination
EBITDA
€ 1,225 mn
-6.9%
-0.3%
but starting to recover in 2Q
EBIT
€ 897 mn
-0.9%
+7.8%
Improved operating
margins, particularly in HOCHTIEF
Net Profit
€ 388 mn
-4,7%
+0,2%
Positive impact in 2015 of
exceptional non-cash items
Backlog
€ 69.6 bn
+3.3%
+6.1%
Growth despite negative
impact of forex
(+6% with respect to 1Q)
* Adjusted by renewables and forex impact
3
Net Profit 1H16
€ mn
6M15
6M16
Variation
Construction
124
157
+26,1%
Industrial Services ex renewables
202
200
-1.0%
6
0
Environment
47
49
Corporation
27
(17)
407
388
Renewables contribution
Net Profit
2015 Net Income includes exceptional
non-cash profits in Corporation
Forex negative impact across activities
due to MXN and AUD depreciation
+3.2%
-4.7%
Good operating performance with
improved margins
Strong impact of de-gearing process on
financial expenses
4
1. Sales stabilizing despite market headwinds
Sales affected by currency negative impact andSales
salesbreakdown
slowdown in Australia…
17,807
-5.3%
16,867
Asia Pacific
23%
Africa
1%
Spain
17% (-16%)
(-29%)
Rest of Europe
8% (-8%)
16,387
South America
7%
(0%)
North America
44% (+9%)
1H16
1H15
Renewables assets
Forex
… but recovering in 2Q across regions
ASIA PACIFIC
REST OF REGIONS
+6.8%
6,503
+7.1%
1,832
1,576
6,090
Figures in €mn
Like for like variations
1Q16
2Q16
1Q16
1,962
ACS exCIM
1,672
CIM
2Q16
5
1. Sales stabilizing despite market headwinds
SALES breakdown by activity (€mn)
CONSTRUCTION
ENVIRONMENT
INDUSTRIAL SERVICES
-9.1%
12,756
+3.3%
11.597
3.606
+6.9%
3,490
1,680
1,604
11,344
1H15
•
•
1H15
1H16
Affected by CIMIC top
line decrease & AUD
depreciation
Rest of areas growing
Like for like variations
3,455
1H16
•
Positive performance ex
renewables
•
Affected by MXN
depreciation vs EUR and
project termination in
Spain
Renewables assets
1,572
Forex
1H15
1H16
•
Positive performances
across the areas of
activity
•
Growth in Spain, France
and UK
6
2. Improved operating efficiency
EBIT (€mn)
EBITDA (€mn)
Improved operating margins
-0.3%
1,281
+7.8%
1,285
943
897
1,225
7.2%
Margin
1H15
7.5%
1H16
875
4.9%
1H15
Margin
5.5%
1H16
Positive impact of transformation process in HOCHTIEF…
433
…reducing overheads and capital intensity
Figures in €mn
Like for like variations and margins
Forex
Renewables assets
7
3. De-gearing process paying off
Total indebtedness slashed with significant reduction in Assets Held for Sale debt…
- 55%
8,745
Despite LTM € 766mn investment to
increase HOT & CIM stake
2.932
2.213
- 4.4%
4,117
3,934
609
5.812
437
4.830
3.508
Jun-14
Figures in €mn
Dec-14
Net Debt
193
Jun-15
3.741
2.624
Dec-15
Jun-16
AHS Debt
8
3. De-gearing process paying off
….enables drastic reduction in financial expenses and implicit cost of debt
-62%
1H 16
Year 2015
Year 2014
600
550
529
-54%
506
500
450
435
5.43%
400
342
350
298
4.53%
300
250
3.91%
200
150
100
1H14
2H14
1H15
Financial expenses
Figures in €mn
2H15
1H16
Implicit cost of debt
9
4. Positive trend in FFO generation
LTM jun15
759
487
LTM jun16
Net interest paid
Net Operating CAPEX
445
Net interest paid
-41%
320
Net Operating CAPEX
-34%
40
2,675
357
88
Taxes
paid
Other results & adj.*
2,318
1,073
EBITDA
Pre tax FFO
(bf WC var)
417
412
Taxes
paid
WC var
134
WC var
1,514
1,291
1,068
FFO
Pre tax FFO
(bf WC var)
EBITDA
FFO
+21%
Figures in €mn
* Dividends from JV & Associates, restructuring cost and adjustments.
+41%
10
4. Improved FFO Trend
Half year Pre tax FFO (bf WC var) increasing trend
+19%
667
639
723
791
406
1H14
2H14
1H15
2H15
1H16
11
5. Robust order intake
BACKLOG (€mn) and breakdown
by geographies
Backlog breakdown
+6.1% 71.414
69,561
•
Asia Pacific
33%
(+3%)
South
America
6% (-8%)
67,329
1H15
Africa
1%
Spain
16% (-1%)
Rest of
Europe
(-2%)
11%
North America
32% (+12%)
1H16
Significant forex impact, particularly
from AUD and MXN depreciation
•
Solid growth in North America & Asia
Pacific regions
Forex
Like for like variations
12
5. Robust order intake
BACKLOG breakdown by activity (€mn)
CONSTRUCTION
+6.3%
52,095
51,252
+11.4%
•
Solid growth in North
America & Asia Pacific
•
Stability in Europe
9,738
1H16
1H15
1H16
•
•
10,274
10,195
8,123
49,011
Like for like variations
+0,8%
9,045
8,572
1H15
ENVIRONMENT
INDUSTRIAL SERVICES
Double digit growth in
Asia Pacific
New awards of EPC
projects
Forex
1H15
•
1H16
Negative forex impact
from Latam currencies
13
Conclusions
Resilient 2Q16 top line results
despite negative FX impact and Australian slowdown
Transformation and de-gearing processes paying off
through operating and financial improvements
Robust and diversified backlog
which guarantees ST future growth
On track to achieve 2016 goals
14
15