2003 RESULTS February 25 th 2004 Year 2003
2003 RESULTS February 25 th, 2004
§ Year 2003 Highlights § Consolidated 2003 Results § Consolidated 2003 Balance Sheet § Analysis by business § Conclusions
2003 Has been an Important year for Grupo ACS. . . Merger with Grupo Dragados Outstanding step towards leadership Pro-Forma Net Profit Fulfillment of Results Prospects € 380 mn +16. 5% EBITDA And in Cash generation € 932 mn +16. 0% Net Investments € 543 mn +18. 8% Maintaining investments in future projects (Excl. € 385 mn from 10% Takeover Bid DRC) Net Debt with recourse: € 914 mn And a solid financial structure (1) (After amortized 35% DRC acquired by 1, 318 mn 1) 33. 5% acquired by ACS (€ 900 mn in 2002 and € 385 mn in 2003) + € 33 mn of Treasury Stock 3
. . . In Our Target of being an European Reference. . . Industry Leadership • Nº 1 in Construction in Spain • Nº 1 in Industrial Services in Spain, Portugal and Latam • Nº 1 in Waste Treatment in Spain • Nº 1 in Port & Logistics Services in Spain • Nº 1 worldwide in the development of Infrastructure Concessions Leadership in Shareholders Profitability • Highest EBIT Margin in Europe: 6% • Highest Net Profit in the Spanish Construction industry: € 380 mn • Total Return to Shareholder (Year-end 95´- Year-end 03´) = 33% • Market Capitalization > € 4, 800 mn 4
. . . Backed by the Financial Markets 50% DRC + 36. 5% 40% 30% ACS + 26. 8% 20% 10% 0% 18/04 31/05 12/07 23/08 4/10 15/11 30/12 11/02 25/03 7/05 18/06 30/07 10/09 22/10 3/12 -10% Dow Jones + 2. 4% Ibex 35 - 5. 6% -20% -30% Euro. Stoxx 5 0 - 25. 5% -40% -50% 4/18/2002 12/31/2003 5
§ Year 2003 Highlights § Consolidated 2003 Results § Consolidated 2003 Balance Sheet § Analysis by business § Conclusions
For the determination of the pro-forma figures, merger has been considered effective since January 1 st, 2002, and the extraordinary provision for merger expenses accounted in 2003 has been excluded For further details look up in Annex I, FY 2003 Results Report at the CNMV and available at http: //www. grupoacs. com 7
Key Financial Pro-Forma figures 2002 2003 9, 962. 1 10, 733. 6 EBITDA 803. 1 931. 8 + 16. 0 % EBIT 576. 6 649. 0 + 12. 5 % 326. 4 380. 3 + 16. 5 % 2. 75 € 3. 21 € + 16. 5 % 978. 6 1, 230. 6 (Million Euros) Sales Net Profit (1) EPS Total Net Debt Var. + 7. 7 % + 25. 7 % Net Debt with recourse 673. 3 914. 4 + 35. 8 % Project Finance 305. 3 316. 2 + 3. 6 % Shareholders Equity Net Investments (3) (2) 1, 805. 5 1, 796. 4 457. 3 543. 0 - 0. 5 % + 18. 7 % Net Profit does not include the extraordinary provision for merger expenses (€ 111. 5 mn) 2003 Shareholders Equity considers the extraordinary provision for merger expenses and 2003 interim dividend accrued on December 2003 (€ 42. 6 mn) and paid on 01/15/2004. (3) The net investments does not include the acquisition of 33. 5% of DRC (€ 900 mn in 2002 and € 385 mn in 2003) (1) (2) 8
Pro-Forma P&L Account (Million Euros) Sales Operating Expenses EBITDA Amortizations/Provisions EBIT Financial Results Profit Equity accounted Goodwill amortization Ordinary Profit Extraordinary Results Profit before Taxes Corporate Income Tax Minorities Net Profit Effective Tax Rate 2002 2003 9, 962. 1 10, 733. 6 (9, 159. 1) (9, 801. 8) 803. 1 931. 8 (226. 4) (282. 8) 576. 6 649. 0 (128. 6) 55. 3 (59. 9) (118. 5) 67. 8 (61. 0) 443. 4 537. 3 (51. 1) (38. 5) 392. 3 498. 9 (62. 1) (3. 8) (109. 7) (8. 9) 326. 4 380. 3 16. 4% 25. 4% Var. + 7. 7% + 16. 0% + 12. 5% + 21. 2% + 27. 2% + 16. 5% 9
Businesses Breakdown 2003 Pro-Forma Sales EBIT 19. 9% Net Profit 19. 7% 25. 5% 46. 1% 47. 6% 51. 7% 28. 4% 28. 3% 32. 7% 2002 Pro-Forma Sales EBIT 18. 9% Net Profit 19. 6% 38. 7% 48. 8% 53. 0% 28. 1% 31. 6% Construction Industrial Services 42. 5% 18. 8% Services and Concessions 10
Operating Ratios Performance 10% 30% 8. 7% 8. 1% 5. 8% 6. 0% 24% Margin 6% 27% 25. 4% 4% 2% 3. 5% 3. 3% Tax Rate 8% 21% 18% 16. 4% 0% 15% 2002 PF 2003 PF EBITDA / Sales EBIT / Sales Net Profit / Sales Effective Tax Rate 11
Pro-Forma Financial Results (Million Euros) Financial Expenses Paid interests Pro-Forma interests Financial provisions Negative exchange dif. 2002 2003 (259. 5) (195. 1) -24. 8% (197. 6) (20. 6) (1. 5) (39. 9) (151. 7) (3. 0) (4. 7) (35. 7) -23. 2% -85. 4% +215. 2% -10. 4% Var. Financial Income 130, 9 76. 6 -41. 5% Earned interests 99. 8 66. 2 -33. 6% Positive exchange dif. 31. 2 10. 4 -66. 7% (128. 6) (118. 5) -7. 9% (97. 8) (20. 6) (1. 5) (8. 7) (85. 5) (3. 0) (4. 7) (25. 4) -12. 6% -85. 4% +215. 2% +190. 7% Financial Results Net Interests Pro-Forma interests Financial provisions Net exchange dif. 12
EPS Evolution 3. 21 € 3. 0 € (1) 36% 2. 83 € 2. 5 € 30% 2. 33 € 2. 0 € 1. 5 € 1. 89 € 1. 65 € 15. 9% 23. 6% 16. 5% 18% 14. 4% 1. 0 € 12% 0. 5 € 6% 1999 2000 EPS Growth (1) 24% 21. 6% 2001 2002 2003 PF EPS 2003 EPS does not include the extraordinary provision for merger expenses (€ 111. 5 mn) for once 13
Average Staff Product. 2002 2003 Var. Construction 21, 077 20, 446 -3. 0% 273. 6 +8. 2% Industrial Services 25, 760 26, 783 +4. 0% 114. 6 +4. 4% Services and Concessions 44, 607 50, 545 +13. 3% 42. 7 +0. 1% 157 146 -7. 0% 91, 601 97, 920 +6. 9% 109. 6 +0. 8% 94, 091 99, 298 +5. 5% 20. 8% 20. 5% +4. 0% Holding and Others TOTAL Year-end figure Fixed over Total (000´€ / Empl. ) Var 14
§ Year 2003 Highlights § Consolidated 2003 Results § Consolidated 2003 Balance Sheet § Analysis by business § Conclusions
Consolidated Balance Sheet (Million Euros) Fixed Assets Working Capital Days of Sales Total Assets 2002 PF 2003 3, 877. 6 4, 446. 9 +14. 7% (584. 2) (658. 8) +12. 8% (22) +0. 0% Var. 3, 293. 5 3, 788. 1 +15. 0% 1, 805. 5 1, 796. 4 -0. 5% Other long term liabilities 509. 4 761. 1 +49. 4% Net Debt 978. 6 1, 230. 6 +25. 7% Project Finance 305. 3 316. 2 +3. 6% Corporate Net Debt 673. 3 914. 4 +35. 8% 37. 3% 50. 9% +13. 6% Shareholders Equity Gearing Total Equity & Liabilities 3, 293. 5 3, 788. 1 +15. 0% 16
2003 Investments Breakdown Fixed Assets Invest. (Million Euros) Construction 83 Industrial Services 75 294 Services and Concessions Holding 31 TOTAL 482 Conces. Projects INVEST. ASSETS DISP. TOTAL 83 (20) 63 41 116 (21) 95 134 428 (74) 354 31 31 175 658 (114) 543 Main Disclosure • Construction: Equipment and Technical installations • Industrial Services: Wind farms (€ 71 mn); Electrical networks (€ 16 mn) • Services: Equipment for new contracts (€ 100 mn), Treatment Plants (€ 45 mn), Port Terminals (€ 56 mn) and Coaches renewals (€ 55 mn) • Concessions: Investments in 15 projects (€ 86 mn) • Holding: Acquisition of 0. 51% Abertis (€ 31 mn) 17
Shareholders Equity Evolution Million Euros ACS Shareholders Equity at 12. 31. 2002 DRC Shareholders Equity at 12. 31. 2002 (1) 25% of DRC Cancellation PRO-FORMA SHAREHOLDERS EQUITY AT 12. 31. 2002 10% of DRC Cancellation (2) 980. 4 1, 122. 0 (296. 9) 1, 805. 5 (112. 2) 2003 Pro-Forma Net Profit 380. 3 ACS 2002 Dividend (46. 1) DRC 2002 Complementary Dividend (15. 3) 2003 Interim Dividend (42. 7) Exchange Differences and others (61. 6) Extraordinary Provision for merger expenses SHAREHOLDERS EQUITY AT 12. 31. 2003 (1) (2) (111. 5) 1, 796. 4 23. 5% acquired to SCH on April 18 th, 2002, plus 1. 5% of Treasury Stock 10% acquired through the Takeover Bid 18
Net Debt Evolution 1, 400 140% 1, 230 120% € mn 1, 000 (1) 84% 800 100% 80% 600 52% 45% 400 591 48% 213 200 125 25% 0 1999 Total ACS Net Debt 13% 7% 2000 2001 40% 20% 1. 47 x EBITDA 54% 30% 27% Project Finance: € 316 mn (25. 7% of Total) Net Debt with recourse/ Shareholders Equity: 50. 9% 60% 323 Debt / Market Cap. 1, 200 0% 2002 2003 Total Net Debt/ACS Market Cap. Total Net Debt/Market Cap. (Industry Average (2)) (1) (2) September 2003 figures ACS, DRC, ANA; FCC, FER, Sy. V, and OHL 19
Pro-Forma Cash Flow Statement 2002 2003 Cash Flow from Operations 578. 1 743. 8 Working Capital Excess 338. 7 74. 6 916. 7 818. 5 (843. 6) 386. 3 (657. 5) 114. 5 (457. 3) (543. 0) 506. 5 (1, 019. 6) 424. 2 (440. 8) 16. 9 (86. 6) (496. 2) (103. 2) (Million Euros) Cash Flow from Operating Activities Investments Disposals of Assets Net Investments Bank Financing (1 ) Treasury Stock Cancellation + Dividends Other long term financing Cash Flow from Financing Activities Cash Variation (1) (36. 7) 172. 3 € 900 mn from the acquisition to the SCH of the 23. 5% plus € 58 mn from DRC Treasury Stock acquisition and € 62 mn of 2002 Dividends paid; € 385 mn of the 10% DRC Takeover Bid in March 2003 and € 56 mn in dividends paid during 2003 20
§ Year 2003 Highlights § Consolidated 2003 Results § Consolidated 2003 Balance Sheet § Analysis by business § Conclusions
Construction: Pro-Forma Results 2002 2003 Var. 5, 330 5, 595 +5. 0% 385 424 +10. 1% 7. 2% 7. 6% 312 331 5. 9% 320 341 Margin 6. 0% 6. 1% Net Profit 225 215 Margin 4. 2% 3. 8% 28. 1% 32. 4% (Million Euros) Sales EBITDA Margin EBIT Margin Ordinary Profit Tax Rate +6. 0% +6. 6% -4. 3% 22
Construction: Pro-Forma Breakdown 2002 2003 Var. National 4, 645 5, 144 +10. 7% Civil Works 2, 764 2, 952 +6. 8% Non residential Building 1, 243 1, 431 +15. 1% Housing 638 761 +19. 2% International 684 451 -34. 1% 5, 330 5, 595 +5. 0% (Million Euros) TOTAL 2002 PF Sales 2003 PF Sales 13% 8% 14% 12% 52% 23% 52% 26% 23
Industrial Services: Pro-Forma Results (Million Euros) 2002 2003 Var. Sales 2, 827 3, 069 +8. 6% 246 278 +13. 0% 8. 7% 9. 0% 202 227 7. 2% 7. 4% 157 199 5. 6% 6. 5% 100 132 3. 5% 4. 3% 32. 1% 29. 7% EBITDA Margin EBIT Margin Ordinary Profit Margin Net Profit Margin Tax Rate +12. 3% +26. 7% +32. 6% 24
Industrial Services: Pro-Forma Breakdown 2002 (Million Euros) 2003 Var. Distribution Networks 692 781 +12. 8% Energy Projects 569 728 +28. 0% Telecommunications 368 301 -18. 1% Control Systems 442 446 +1. 0% Industrial Systems 757 813 +7. 5% 2, 827 3, 069 TOTAL 2003 PF Sales 2002 PF Sales 24% 27% 20% 16% 13% +8. 6% 27% 25% 14% 24% 10% 25
Services and Concessions: Services Pro-Forma Results (Million Euros) Sales EBITDA Margin EBIT Margin Ordinary Profit Margin Net Profit Margin Tax Rate (1) (1 ) 2002 2003 Var. 1, 899 2, 157 +13. 6% 231 275 +19. 2% 12. 1% 12. 8% 123 143 6. 5% 6. 6% 80 91 4. 2% 101 64 5. 3% 3. 0% 10. 6% 26. 1% +16. 4% +13. 4% -36. 9% 2002 includes the gains from the sale of Redal, which totaled € 22 mn 26
Services and Concessions: Services Pro-Forma Breakdown 2002 2003 Environment 903 985 +9. 1% Ports & Logistics 454 552 +21. 5% Passengers Transportation 142 157 +10. 8% 400 462 +15. 6% 1, 899 2, 157 +13. 6% (Million Euros) Integral Maintenance TOTAL 2002 PF Sales 2003 PF Sales 21% 48% 7% 24% Var. 46% 7% 26% 27
Services and Concessions: Concessions Pro-Forma Results (Million Euros) 2002 2003 3 (6) 45 45 45 39 0 6 43 10 104 55 EBIT Profit by Equity Method Abertis Others (1) (2) Gains from Assets Disposals Net Profit (1) In 2002 it corresponds to Aurea, who enjoyed an exceptional low tax rate (2) In 2002 it corresponds mainly to the sale of the M-45 Stretches and Aulesa 28
§ Year 2003 Highlights § Consolidated 2003 Results § Consolidated 2003 Balance Sheet § Analysis by business § Conclusions
Year 2003 Results: Preparing the Future Good operating performance EBITDA > € 930 mn +16. 0% Ordinary Profit > € 537 mn +21. 2% PBT > € 499 mn +27. 2% Net Profit > € 380 mn +16. 5% Net Debt Net Investment Provision < € 1, 250 mn > € 540 mn Merger Expenses 30
Active Investment Policy Net investment (ACS+DRC) in 2000 -2003 • Over € 2, 200 mn, excluding acquisition 33. 5% DRC • Annual average above € 550 mn • Mainly focused to diversification Future Investments (per year) • Regular capex • Investments for business expansion • Investments in Concessionaire projects < € 200 mn > € 150 mn 31
Extraordinary Merger Expenses Provision 2003 Extraordinary Provision net of taxes p Construction p Industrial Services p Services and Concessions p Holding Pending assignment € 111. 5 mn € 32. 5 mn € 19. 5 mn € 20. 4 mn € 15. 8 mn € 23. 3 mn 2006 Target: Net recurring cost savings of € 85 mn per year • Streamlining of new organization • Operating efficiencies by companies integration • Economies of scales • Tax shield of merger goodwill amortization 32
Good 2004 Prospects. . . SALES + 5 -10% Construction + 5 -8% Industrial Services + 8 -12% Services and Concessions + 8 -12% EBIT + 10 -15% NET PROFIT > 15% INVESTMENTS > € 500 mn 33
. . . Based on Our Strategy. . . Focused on Value Creation through three criteria LEADERSHIP ORIENTED TO THE CLIENT EFFICIENT RESOURCES MANAGEMENT PROFITABLE AND SUSTAINED GROWTH Profitable and recurrent • Own corporate contractor culture • Decentralized Organization • • Focus on customer service • Productivity improvements • Strong Cash Flow generation • Coherent • Cost savings • Active investment • Continuous training and innovation • Solid financial structure diversification • Technical excellence businesses policy 34
. . . And a Solid Backlog 2002 2003 Var. 7, 559 7, 888 4. 3 % Domestic 6, 544 6, 989 6. 8 % International 1, 015 900 (11. 4 %) 2, 783 3, 049 9. 5 % 12 11, 795 12, 390 5. 2 % 69 22, 138 23, 327 5. 5 % Construction Industrial Services TOTAL Months 17 35
February 25 th, 2004
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