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abertis: infrastructure management leader 26th June 2007

abertis: infrastructure management leader 26th June 2007. Disclaimer.

duncan-bernard
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abertis: infrastructure management leader 26th June 2007

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  1. abertis: infrastructure management leader • 26th June 2007

  2. Disclaimer The information and forward-looking statements contained in this presentation have not been verified by an independent entity and the accuracy, completeness or correctness thereof should not be relied on.  In this regard, the persons to whom this presentation is delivered are invited to refer to the documentation published or registered with the Spanish stocks markets regulator(Comisión Nacional del Mercado de Valores). All forecasts and other statements included in this presentation that are not statements of historical fact, including, without limitation, those regarding the financial position, business strategy, management plans and objectives for future operations of abertis (which term includes its subsidiaries and investees), are forward-looking statements.  These forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements of abertis, or industry results, to be materially different from those expressed or implied by these forward-looking statements.  These forward-looking statements are based on numerous assumptions regarding abertis’ present and future business strategies and the environment in which abertis expects to operate in the future which may not be fulfilled.  All forward looking statements and other statements herein speak only as of the date of this presentation and abertis does not undertake to update any such statements. None of abertis or any of its affiliates, advisors or representatives, nor any of their respective directors, officers, employees or agents, shall bear any liability (in negligence or otherwise) for any loss arising from any use of this presentation or its contents, or otherwise in connection herewith. The information contained in this presentation shall neither be published nor distributed without the previous express consent of Abertis Infraestructuras, S.A. The distribution of this presentation in certain other jurisdictions may be restricted by law. Consequently, persons to which this presentation or a copy of it is distributed must inform themselves about and observe such restrictions. By receiving this presentation you agree to observe those restrictions. Nothing herein constitutes an offer to purchase and nothing herein may be used as the basis to enter into any contract or agreement.

  3. Table of Contents • abertis overview • Business units • Summary of 2006. Key indicators • Strategic challenges: abertis in an attractive market • An attractive market • abertis competitive advantages • abertis strategy • Financial objectives • Economic objectives

  4. 1. abertis overview

  5. abertis overview • abertis is an international group, leader in managing infrastructures for mobility and telecommunications through five business areas: • 2006A Rev: €3,335m +75% YoY+ 11% like for like • 2006A EBITDA: €2,099m +74% YoY + 12% like for like Highways Telecom. Airports Car Parks Logistics 06 Rev.: €282m06 EBITDA: €92m 06 Rev.: €19m 06 EBITDA: €6m 06 Rev.: €2,537m06 EBITDA: €1,827m 06 Rev.: €369m06 EBITDA: €154m 06 Rev.: €118m 06 EBITDA: €47m Geographical diversification focused on infrastructures with high Ebitda generation capacity 2

  6. abertis overview Sustainable and selective growth strategy with a business model focused on long term investments Focused in infrastructures and diversified by geographies Solid Shareholder structure committed to the company strategy Market capitalisation over €13,000m and presence in the major stock market indexes (Ibex 35, S&P Europe 350, FTSE Eurofirst 300) High cash flow generation capacity Low risk profile and solid financial structure (Rating A/A , S&P/Fitch) with limited sensitivity to interest rates changes 3

  7. abertis overview 16 countries 5 sectors 11,000 employees €3,335m in revenues €2,099m EBITDA Toll roads Telecom Airports Car parks Logistics 4

  8. 2. Business units

  9. Business units By Business Line By Geography Revenues Revenues Others EBITDA EBITDA Others Motorways account for more than 76% of revenues and 87% of 2006 EBITDA 6

  10. Business units Toll Roads - Spain Leader in the sector in Spain 59% of all toll roads in Spain Directly managed > 1.500 km Indirectly managed > 225 km 7

  11. Business units Toll Roads - France 52,50% of the sanef group 1.743 km directly managed 21% of network in France 53% of total abertis network Managing 4 of the 7 Paris access roads, and the traffic connecting Germany, Belgium and Luxembourg to Northern France and the United Kingdom 8

  12. Business units Toll Roads – Rest of the World 9

  13. Business units Telecommunications infrastructure Leader in Spain More than 3.000 sites National coverage of radio and TV (coverage: > 99% analogical; > 80% TDT) 10

  14. Business units Telecomunnications infrastructure Opening to International Markets Acquisition of 32% of the European satellite operator Eutelsat Fleet of 23 satellites 3rd world operator of fixed satellites, with a global market share of 13% on revenues (30% in Europe) 11

  15. Business units Airports 8 airports in property or concession, in Europe (UK and Sweden), the US and Bolivia 5 airports with management contracts in the US, Costa Rica and Colombia 12

  16. Business units Car parks Main operator in Spain and a referent for all the sector in Europe 6 countries, 161 car parks, 87.127 car park units 13

  17. Business units Logistic services International strategy: Portugal and Chile Development and management of logistic parks Located strategically for freight transportation, near sea, air and land transportation networks (highway and railway). 14

  18. 2. Summary of 2006. Key indicators

  19. Summary of 2006. Key indicators Results (M€) Revenues (€m) EBITDA (€m) Net Income (€m) Like-for-like Net Income (€m) 16

  20. Summary of 2006. Key indicators Investments: 3.59 B€ 5% 1% 1% 15% 1% 1% Expansion: 3.331 B€ Operative: 259 M€ 1% 11% 68% 96% 17

  21. Summary of 2006. Key indicators Net generation of funds 822 M€ 2005 +48% 2006 1.221 B€ Net cash flow + debt application Dividends 294 M€ Operational investment 259 M€ Investments in Expansion 3.331 B€ 18

  22. Summary of 2006. Key indicators Consolidated result 19.217 B€ + 128% 4,447 Equity Tangible assets 9,610 Intangible assets 12,168 Financial debt 6,805 Financial assets 1,856 2,602 Other liabilities 946 Current assets Assets Liabilities 19

  23. Summary of 2006. Key indicators Debt Variable rate 16% With recourse 36% Fixed rate 84% Without recourse 64% Average cost of the debt: 4.8% Average expiry term: 7.3 years 20

  24. Summary of 2006. Key indicators Net debt / EBITDA Ferrovial 14.8x Cintra 14.5x ASF 10.3x Eiffage 7.5x Brisa 5.7x abertis 5.6x Autostrade 4.5x Vinci 4.0x 21

  25. Summary of 2006. Key indicators Standard & Poor’s Fitch Ratings A 22

  26. Summary of 2006. Key indicators Profitability indicators ROE +10.7% 2005 16.1% 2006 17.8% ROE: Net consolidated profit (without non-recurring) / Average net equity EPS +21.9% 2005 0.77€ 2006 0.94€ EPS: Net consolidated profit (without non-recurring) / adjusted number of shares 23

  27. 4. Strategic challenges: abertis in an attractive market

  28. a. An attractive market Predictable cash flows Flexible financing formulas Strong need for capital Balance between risk and profitability Appearance of financial-type players 25

  29. a. An attractive market Attractive market + Complexity + Difficulty High expectations + Risk 26

  30. Futures solid and predictable cash flows Regulated assets with strong upfront capex requirements Attractive balance risk/return ratio Additional leverage capacity New players looking for industrial expertise Attractive to long-term investors b. abertis competitive advantages Uniquely positioned in an attractive market 27

  31. b. abertis competitive advantages Investment criteria abertis main shareholder Single industrial partner Commitment with local partners Participation of financial partners Financial design adapted to the project IRR around 10% 28

  32. Investment €1.870m Investment €5.100m Investment €1.000m c. abertis strategy A clear strategy focused on growth and profitability The infrastructure group that has invested de most 2005 2007 2006 Total EV: €1,100m Cons. Revenues: €257m Cons. EBITDA: €73m Total EV: €8,900m Cons. Revenues: €1,241m Cons. EBITDA: €779m Total EV: €5,800m Cons. Revenues: €791m Cons. EBITDA: €617m 32% 57.5% 90% (% EV) €8,000m invested (EV) between 2005 and 2007 29

  33. European inspiration,world ambition c. abertis strategy Internationalization 30

  34. c. abertis strategy Attractive investment opportunities in Europe • Central/ • Eastern Europe • Motorways • Airports • Car Parks • U. Kingdom • Motorways • Telecom • Airports • Ireland • Motorways • Italy • Autostrade (6.7%) (*) • Car parks • Telecoms • Logistics • France • Motorways • Car Parks • Telecom • Airports • Spain • Motorways • Airports • Logistics • Car parks • Telecoms • Portugal • Brisa (10%) (*) • Logistics • Car parks (*) Strategic Stakes 31

  35. c. abertis strategy Attractive investment opportunities in America • Canada • Motorways • EE. UU. • Motorways • Telecom • Airports • Mexico • Motorways • Chile • Motorways • Car parks • Logistics 32

  36. c. abertis strategy Investment criteria supported by a solid track record abertis makes investments where it estimates yields superior to 300bps to its project WACC, with implied shareholders' IRR of around double digit 33

  37. d. abertis financial targets Solid expectations of net cash flow generation over the next 5 years 2007-2011 Net Cash flow Generation Cumulative 2007-2011E net cash flow generated in excess of €7,000bn (*) Assuming expansion Capex already committed (i.e AP-7: €500m) 34

  38. d. abertis financial targets Significant re-leveraging capacity 07-11 abertis re-leveraging capacity €3,7500m of additional re-leveraging capacity assuming and re-investment at 9.0 EV / EBITDA • (1) Assuming investment capacity at 9.0x EV/EBITDA 35

  39. d. abertis financial targets Total available funds €7,000m2007-11E Net cash flow generated €3,750m2007-11E Re-leveraging capacity + €10,750m2007-11E Total available funds €10,750m of total available funds in the 2007-2011 period, to be invested and deliver returns to the shareholders 36

  40. d. abertis financial targets Horizon 2011 Cash flows generated Releveraging Investment capacity 11 B€ 37

  41. e. Economic objectives Maximizing business value Focusing on identified and recognised markets Yield-oriented Optimising the result Risk limitation Dividends policy both predictable and growing 38

  42. Conclusion Subject to… The existence of attractive investment opportunities in the already mentioned geographical areas Keep maintaining a strict investment criteria focused on the profitability (shareholders’ IRR around 10%) Obtaining major or controlling stakes or being the sole industrial partner And consolidate the current platform in order to continue delivering sustained growth and profitability 39

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