Download Minimum 2017 ~€1 billion

1. Abertis today
2. 2016 Financial Year
3. Outlook
4. Conclusions
Abertis today
2016 Financial Year
Outlook
Attractive, geographically
diverse asset base
Today, Abertis is the world leader in infrastructure management, with a growth mission
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
VIDEO
Abertis today
2016 Financial Year
Outlook
Conclusions
Talent
Professionalism
Multiculturalism
Executive development
Management style
Commitment, experience
and know-how of the
business and how to
manage it
Over 25 nationalities and high
mobility among executives
80% of management positions
are covered by internal
promotions
Innovative, transparent, with a
global outlook
Our team: over 16,000 people in 16 countries, the key to achieving our goals
Abertis today
2016 Financial Year
Outlook
Conclusions
Road Safety
Continous efforts to improve safety on our toll roads with an €47Mn investments in 2016
Key actions in 2016:
• New app
Autopistas en Ruta
• Projects Kango and
Cooperante Vial
• Observatoire des
comportaments sur
l'autoroute
• Project Escola
• Project City Lab
• Autoroute Academie
Road safety, our priority
• Together for Safer
Roads
• Negotiating a global
agreement to
promote road safety
• New award on
road safety
Abertis today
2016 Financial Year
Outlook
Conclusions
Road safety - in figures
Reduction in no. of accidents
1,146
2016-2013
1,058
12%
23.2
21.0
20.5
21.4
Reduction in no. of victims
916
875
2013
2014
Accident rate (FR1)
2015
2016
No. of victims
Continous improvements to road safety on our toll roads
2016-2013
24%
Abertis today
2016 Financial Year
Outlook
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Road Tech
Facing a global transformation process:
digitalisation.
Development of company businesses:
• Payment system operators
Positioning Abertis as a driver of innovation
for infrastructures.
Partner to governments: solutions to improve
mobility and congestion.
Constant innovation for mobility
Free-flow and toll-charging technology
• Managing 300 million transactions a year
• Flagship projects: Dartford Bridge (UK),
Port Mann Bridge (Canada) and Rhode
Island (US).
Abertis today
2016 Financial Year
Outlook
Conclusions
Road Tech - the Abertis network meeting the
challenges of mobility
2 billion transactions a year,
over 60% by teletoll and over
75% automatic.
Alliances with leading
world partners:
Current projects:
• Free Flow AP-7
• Inframix
• Transformation to
100% free flow
• Autopista Central
100% free flow
• Boost to teletoll
(Stop&Go)
Innovative solutions to improve mobility
Abertis today
2016 Financial Year
Outlook
Conclusions
VIDEO
1. Abertis today
2. 2016 Financial Year
3. Outlook
4. Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Main figures - compared to 2015
Revenues
Gross operating
profit/loss
Like-for-like
net profit
Investment
Dividends
13%
20%
13%
x2.5
11%
Year of growth with €2.6Mn investment and strong results
Abertis today
2016 Financial Year
Outlook
Conclusions
Business - compared to 2015
France
+1.9%
Italy
Spain
+2.6%
+5.3%
Traffic
Tolls
Puerto Rico
+0.9%
+1.3%
+3.7%
Brazil
-2.8%
Chile
Argentina
+6.4%
+0.2%
Business performance better than expected
Abertis today
2016 Financial Year
Outlook
Conclusions
Highlights
• Improvement in
operating margin
• Plan Relance II and III
• Acquisition and integration
• Re-balancing via tariffs
• Integration of the Autopista
Central
• Extension in return for investment
• Re-balancing under negotiation
• Investment in 3 new satellites
• Debt refinancing
Consolidating value creation
Abertis today
2016 Financial Year
Outlook
Conclusions
Profit and loss account (€Mn)
5%
% 2016-2015
Revenues
4,936
Operating expenses
-1,695
Gross margin (EBITDA)
3,240
Amortisations
-1,295
~66%
Financial profit/loss
-620
Corporate income tax
-304
3%
Like-for-like
+13%
+6%
+20%
+9%
+140 pbs
26%
9%
15%
REVENUES
5%
3% (4 months)
-10
P. equivalence
34%
-216
Minority interests
Net profit
796
-58% (*)
+13%
* 2015 includes Cellnex IPO capital gain
Improvement in gross margin and greater geographical diversification
Abertis today
2016 Financial Year
Outlook
Conclusions
Change in EBITDA (€Mn)
9%
20%
231
318
3,240
2,692
Gross operating
profit/loss 2015
Perimeter and other
non-core business
Core business
Gross operating
profit/loss 2016
A good year, with improvements in core business and perimeter extension
Abertis today
2016 Financial Year
Outlook
Conclusions
Efficiencies - Toll roads
Improvement in operating margin vs. 2015
+190 bps
+170 bps
+40 bps
Deployment of our differential industrial model
Organisational streamlining
+130 bps
+290 bps
+170 bps
Integration of systems
Creating synergies
We create value by efficiently managing our toll roads
Abertis today
2016 Financial Year
Outlook
Conclusions
2016 investment
Organic expansion
Inorganic expansion
Capacity
increase
62
€1,020
Mn
Compensation via
tariff
529
Other
28
New satellites
166
Arteris IPO
Autopista
Central
948
€1,612
Mn
70
A4 holding
10-year
extension
Compensation
via extensions
123
112
More than €2.6Bn invested in growth and concession extensions
594
Abertis today
2016 Financial Year
Outlook
Inorganic growth deal 2016
Reinforcing Chile
Investment: €948Mn (purchase of additional 50%
of the Autopista Central up to 100%)
The best toll road in Chile:
• Maturity: 2031 (in negotiation to 2035)
• Kilometres: 61 (crossing Santiago de Chile)
• Significant activity: 86,017 ADT
Impact on consolidation:
• +€217Mn revenues
• +€171Mn gross operating profit/loss
Substantially reinforcing business in Chile
Conclusions
Abertis today
2016 Financial Year
Outlook
Inorganic growth deal 2016
Entry into Italy
Investment: €594Mn (purchase 51% A4)
Key toll road for the northern Italy international corridor:
• Maturity: 2026
• Kilometres: 236 (Veneto zone)
• Significant activity: 62,612 ADT
Impact on consolidation:
• +€544Mn revenues
• +€200Mn gross operating profit/loss
Purchase +9% February 2017 (to 60%)
Value creation through entry into a new market
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Portfolio duration in proportional
EBITDA years
-7 years
+11 years
24 years
20 years
2010
Years elapsed
Years for new investment
Consolidating a diverse, lasting business
2017
Abertis today
2016 Financial Year
Outlook
Conclusions
Net debt (€Mn)
Net debt / Gross operating
profit/loss
Net debt / Gross operating
profit/loss
x4.7
1,232
-430
90%
Fixed net debt (88% 2015)
x4.4
1,018
4.4%
14,377
12,554
Net debt 2015
Cash generated
Inorganic
investment
Debt from acquisitions and
other impacts
Net debt 2016
€2 billion in bonds in 2016, at over 10 years with a fixed average coupon of 1.1%
Efficient liability management: extension of maturity and lower cost
Cost of debt (5.1% 2015)
3.1%
Cost of
corporate debt
(4.1% 2015)
Abertis today
2016 Financial Year
Outlook
Conclusions
Balance at December (€Mn)
Assets
Fixed assets
Liabilities
22,506
Net debt 14,377
Financial assets
4,281
Current assets
Cash
1,869
2,529
A strong, healthy balance of over €31 billion
6,901
Net equity
7,380
Creditors
16,905
Gross financial debt
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions - compared to 2015
Revenues
Gross operating
profit/loss
Operating margin*
Net profit*
Total investments
+13%
+20%
+140bps
+13%
+2,5x
€4,936Mn
€3,240Mn
66%
€796Mn
€2,632Mn
Above expectations
(*) Like-for-like
1. Abertis today
2. 2016 Financial Year
3. Outlook
4. Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Our 2015-2017 Strategic Plan
commitments
Focus and
internationalisation
~75% revenues from
outside Spain
Efficiencies
Expected savings of
€400Mn in 3 years
Disciplined growth
Over €7 billion in
investment
We continue to deliver: strong execution of the Strategic Plan
Shareholder remuneration
+11% dividends in 2016
Abertis today
2016 Financial Year
Outlook
Conclusions
Growth with financial discipline
2015
Organic
2016
€811Mn
€1.020 billion
€168Mn
€1.612 billion
Minority purchase
€1 billion
~ 3 billion
~€1 billion
Autopista
Central
Túnels
Inorganic
Minimum 2017
A4 holding
Minority
purchase
~€2.4 billion
Minority
purchase
€2.6 billion
Minimum
investment
2015-2017
Minority
purchase
~ 4 billion
TTPL / JEPL
Min €3.4
billion
A minimum commitment of €7 billion between 2015 and 2017
Min €7
billion
Abertis today
2016 Financial Year
Outlook
Inorganic growth deal 2017
Reinforcing France
Investment of €1,734Mn to reach 90%
Leading toll road network in France:
• Expiry in 2033
• Kilometres: 1,761
• Activity: 24,473 ADT
Increase in average life
Positive impact on results
Strengthening our position in an important market such as France
Conclusions
Abertis today
2016 Financial Year
Outlook
Inorganic growth deal 2017
Entry into India
Investment: €128Mn
Entry into Asia:
• Maturity: 2026
• Kilometres: 152
• Activity: 18,119 ADT
Impact on consolidation:
• +€31Mn revenues
• +€23Mn gross operating profit/loss
A project with potential, an experience to learn ahead future investment
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Business vision 2017
Expected growth in traffic in all markets
Orientation to growth with financial discipline
• Minimum investment in 2017 of €3.4 billion
Over 4% average average tariff increase
New boost to operational efficiencies
Potential project portfolio:
• Exclusive bilateral negotiations (France, Brazil, Chile, etc.)
• New bids and potential acquisitions
Over 10%
growth in gross
operating
profit/loss
Working to create value and deliver our commitments
1. Abertis today
2. 2016 Financial Year
3. Outlook
4. Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
World leader in toll roads
management with an efficient
industrial model
Conclusions
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
Over €7 billion in investments in
the 2015-2017 period
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
Extending the life of business
portfolio
Over €7 billion in investments in
the 2015-2017 period
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
Disciplined investment and
optimisation of the financial
structure
Over €7 billion in investments in
the 2015-2017 period
Extending the life of business
portfolio
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
77% Free Float and adaptation of
corporate governance
Over €7 billion in investments in
the 2015-2017 period
Extending the life of business
portfolio
Disciplined investment and
optimisation of the financial
structure
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Attractive shareholder
remuneration
Over €7 billion in investments in
the 2015-2017 period
77% Free Float and adaptation of
corporate governance
Extending the life of business
portfolio
Solid results in 2016, with growth
in all markets
Disciplined investment and
optimisation of the financial
structure
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
A committed, talented
management team
Over €7 billion in investments in
the 2015-2017 period
Extending the life of business
portfolio
77% Free Float and adaptation of
corporate governance
Attractive shareholder
remuneration
Solid results in 2016, with growth
in all markets
Disciplined investment and
optimisation of the financial
structure
Abertis today
2016 Financial Year
Outlook
Conclusions
Conclusions
World leader in toll roads
management with an efficient
industrial model
Boost to safer toll roads, with the
best technology: Road Safety and
Road Tech
Solid results in 2016, with growth
in all markets
Over €7 billion in investments in
the 2015-2017 period
Extending the life of business
portfolio
Disciplined investment and
optimisation of the financial
structure
77% Free Float and adaptation of
corporate governance
Attractive shareholder
remuneration
A committed, talented
management team
Progress in delivering the 2015-2017 Strategic Plan