companypresentation - sdc investimentos...2007 – a transition's year turnover —breakdowns...
TRANSCRIPT
Company Presentation
1. Soares da Costa in Brief
2. 2007 A transition's Year
3. “Sustainable Ambition 2007-1012”The view for the future
4. 2008 Forecasts
1
Soares da Costa in Brief
-Soares da Costa is one of the leading economic groups in the civil construction and public works sector in Portugal.
-In international terms, it ranks in 81st place as ‘international contractor’ (turnover outside country of origin) in the North American ENR magazine classification (2007)
-Soares da Costa has a strong international component with a permanent presence in Florida (USA), Angola and Mozambique and timely in other countries.
-Its strong technical capacity, highly qualified human resources and focus on international markets have been key to the success of the Group.
2
Soares da Costa in Brief
INVESTIFINO, SGPS | 70,8%
CAETANO, SGPS | 11,0%
MILLENNIUM BCP | 6,6%
SANTANDER | 2,9%
FREE FLOAT | 8,7%
Shareholder - Structure
3
Soares da Costa in Brief
Soares da Costa Group
Construction | 85,7%
Industry | 12,8%
Real Estate | 1,1%
Concessions | 0,4%
2007 Turnover Breakdown by business areaValues (thousands of euros)
4
Soares da Costa in Brief
Construction
5
Soares da Costa in Brief
Construction
Strong Technical Areas
- Complex Buildings- Bridges and Viaducts- Tunnels- Light Rail Systems- Water Treatement Plants
Some Achievements and figures
- Offices Services and Commerce: 1 287 000 m2 built- Public Administrative Buildings: 198 102 m2 built- Housing: 34 500 units- Sewage Treatment Plants: 4,8 million population equivalent served- Water Treatment Plants: 2, 12 million population equivalent served- Roads and Motorways: 438 Km built- Bridges and Viaducts: 131 units built- Airports: Macao and Porto- Transport Infrastructure: Porto Light Rail System
6
Soares da Costa in Brief
Concessions
7
Soares da Costa in Brief
Concessions
8
Soares da Costa in Brief
Industry
Mission:To provide the group with the capacity to engage and carry out specialized or complementary work to construction or civil engineering projects.
Activities:- Electrical / Sanitary / Air Conditioning (Clear)- Carpentry and aluminium joinery trade (Maxbela)- Metallic Structures (Socometal)- Rail works and Catenary (Somafel)- Maritim and Railway projects (OFM)
9
Soares da Costa in Brief
Real Estate
Real Estate Projects / Portugal
- “Galeria Central” Renovation (Shopping Center) 16.000 m2- Cais da Fontinha / Casas de Gaia 4.000 m2- Soarta-República in Matosinhos 6.725 m2- Soarta-Alcântara in Lisbon 629 m2- Soarta-Santo Amaro in Lisbon 2.150 m2- Habitop in Abraços Street 1.130 m2 - Soarta-Luis de Camões 755 m2- Senhora do Porto Office’s 3.220 m2 - Antas in Porto 10.500 m2
10
Soares da Costa in Brief
Real Estate
Real Estate Projects / Angola
- Residential Condominium Luanda Sul 15.000 m2- Office Building SdC Luanda (100% SdC) 3.100 m2- Office Building Imokandandu — Luanda CBD 15.000 m2- Melia Hotel / Luanda CBD 37.600 m2
11
2007 — A transition's Year
12
- Consolidated result attributable to group increase to 12.040 million Euros (2x 2006)
- EBITDA increases by 4.7% to reach 36.2 million Euros;
- EBITDA Margin to Turnover ratio continues to steadily rise to reach 6.6% (being an increase of 0,4 percentage points);
- Consolidated turnover falls slightly to 550.5 million Euros whencompared to the previous financial year (being a decrease of 2.1%).
- Foreign turnover grows by 7.0% to 371.6 million Euros, (67.5% of total consolidated turnover);
2007 – A transition's Year
Highlights
13
- Telavive LRT Contract has been signed
- Investments in Concessions business area: Acquisition of CPE —Companhia de Parques de Estacionamento, SA (car parking services) and negotiations aiming to increase the stake in Scutvias (motorways concessions)
- Order book rises to 1,314 million Euros, growing by 43.1% when compared to previous year (858 million Euros);
- Acquisition of Contacto — Sociedade de Construções, SA (building & construction) early in 2008;
2007 – A transition's Year
Highlights II
14
2007 – A transition's Year
Values in thousands euros
Main Consolidated Indicators
15
2007 – A transition's Year
Turnover — Breakdowns
By market
By Business area
562.296562.296562.296562.296550.541550.541550.541550.541TotalTotalTotalTotal
7 x superior0,13090,42.273Concessions
11 x superior0,15601,16.190Real Estate
-36,6%9,151.43812,870.256Industry
-7,5%90,7509.73085,7471.733Construction
--258-89Holding + Shared Services
VariationVariationVariationVariation%%%%2006200620062006%%%%2007200720072007BussinessBussinessBussinessBussiness AreaAreaAreaArea
----2,1%2,1%2,1%2,1%100100100100 100100100100
100%100%100%100%562.296562.296562.296562.296100%100%100%100%550.541550.541550.541550.541TotalTotalTotalTotal
427,1%0,6%3.3153,2%17.473Outros*
165,1%1,0%5.4782,6%14.524S. Tomé e Príncipe
62,0%1,8%10.1143,0%16.386Mozambique
-28,8%23,7%133.45017,3%95.017USA
17,0%34,7%195.02741,5%228.218Angola
-16,7%38,2%214.91232,5%178.924Portugal
VariationVariationVariationVariation%%%%2006200620062006%%%%2007200720072007MarketMarketMarketMarket
----2,1%2,1%2,1%2,1%
Values in thousands euros
Values in thousands euros16
2007 – A transition's Year
Consolidated Results
Breakdown by Business Area
Consolidated net operational income, net financial income, and net income for the year per business segment
12,04012,04012,04012,040(10,943)(10,943)(10,943)(10,943)23,49223,49223,49223,492TotalTotalTotalTotal
(13,047)(12,900)(147)Consolidation adjustments/Dividends
4,9734,821(911)Concessions
(622)(832)51Real Estate
3,743(2,711)6,956Industry
11,907(5,012)20,720Construction
5,0865,690(3,177)Grupo SGPS, SA + Shared Services
NetNetNetNet incincincinc....NetNetNetNet finfinfinfin. . . . IncIncIncInc....NetNetNetNet opopopop. . . . IncIncIncInc....BusinessBusinessBusinessBusiness AreaAreaAreaArea
Values in thousands euros
17
2007 – A transition's Year
Consolidated Assets Performance
-Increase of non current assets by 123,5 million Euros
-Main investments
-Basic production equipments - 14,5 mio €
-Land and Buildings — 13,2 mio €
-Concessions ( Scutvias, CPE, HidroEcuador) 70,3 mio €
18
2007 – A transition's Year
Consolidated Liabilities Performance
Net Debt rose from 167,7 to 313,6 mio €, associated to investment initiatives
Net-Debt Evolution
19
2007 – A transition's Year
Consolidated Liabilities Performance II
Decomposition of Net /Debt Variation
Financial Investments | 48,2%
CPE Consolidation | 10,5%
Working Capital | 19,7%
Basic equipment | 10,0%
Buildings | 9,0%
Fixed tangible assets | 2,6%
20
“Sustainable Ambition 2007—2012” —The view of the future
From Construction to Economic group
21
“Sustainable Ambition 2007–2012” – The view of the future
Strategic development optionsInternationalisation
Internationalisation
Internationalisation
Internationalisation
BusinessBusinessBusinessBusiness diversificationdiversificationdiversificationdiversification (EBITDA (EBITDA (EBITDA (EBITDA focusfocusfocusfocus))))
xxxxxxxx Number of companies xxxxxxxx Share price appreciation in the last 3 years (base 2004 = 100)
5,0%5,0%5,0%5,0%
10,8%10,8%10,8%10,8%
CAGRCAGRCAGRCAGRVendasVendasVendasVendas
3333276276276276
ConstrConstrConstrConstr....= 13,4%= 13,4%= 13,4%= 13,4%
3333230230230230
6,8%6,8%6,8%6,8%
0,2%0,2%0,2%0,2%
CAGR CAGR CAGR CAGR VendasVendasVendasVendas
ConstrConstrConstrConstr. = . = . = . = 3,1%3,1%3,1%3,1%
1111n.an.an.an.a....
4,5%4,5%4,5%4,5% 6,2%6,2%6,2%6,2%
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
CAGR CAGR CAGR CAGR SalesSalesSalesSales
ConstrConstrConstrConstr. = . = . = . = 7,2%7,2%7,2%7,2%
3333476476476476
ConstrConstrConstrConstr....= 11,4%= 11,4%= 11,4%= 11,4%
17,4%17,4%17,4%17,4%14,7%14,7%14,7%14,7%
CAGRCAGRCAGRCAGRVendasVendasVendasVendas
4444324324324324
ConstrConstrConstrConstr. . . . = 13,6%= 13,6%= 13,6%= 13,6%
15,5%15,5%15,5%15,5%15,4%15,4%15,4%15,4%
CAGR CAGR CAGR CAGR SalesSalesSalesSales
4444256256256256
7,2%7,2%7,2%7,2%8,7%8,7%8,7%8,7%
CAGR CAGR CAGR CAGR SalesSalesSalesSales
ConstrConstrConstrConstr. . . . = 7,9%= 7,9%= 7,9%= 7,9%
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
Scenario 2 Scenario 2 Scenario 2 Scenario 2 ————Rapid growt
h in concessions and con
struction
Rapid growth in concess
ions and construction
Rapid growth in concess
ions and construction
Rapid growth in concess
ions and construction
Scenario 1Scenario 1Scenario 1Scenario 1
22
“Sustainable Ambition 2007–2012” – The view of the future
Soares da Costa should aspire to join the Iberian “second league”
TURNOVER [2006; Bio. EUR]
Global Diversified Non exhaustive
2006 turnover
SdC’s entry into Iberian “second league”
14,1
12,4
9,5
6,3
4,7
3,3
1,6 1,5 1,3 1,1 0,9 0,8 0,8 0,7 0,6 0,6 0,5 0,4 0,4 0,4 0,3 0,3 0,2
23
“Sustainable Ambition 2007–2012” – The view of the future
Vision and strategic objectives 2007-2012
An international scale construction and services/concessions Group with levels of profitability and creation of shareholder value in line with the world leaders in the sector
24
“Sustainable Ambition 2007–2012” – The view of the future
Develop an international scale construction and services group based on focused diversification in the concessions/services area
Align portfolio of businesses
Three core markets
Two strategic business areas
Align management processes and systems
Win concessions
Inorganic growth
Strategic development
actions
1111 2222
3333
44445555
6666
25
“Sustainable Ambition 2007–2012” – The view of the future
Inorganic Growth
Explore opportunities for inorganic growth in construction and concessions to strengthen positioning in concessions, construction at Iberian level and leverage capability
� Explore opportunities for inorganic growth in Portugal and/or Spain
� Reinforce participation in concessions and, where possible, ensure a positive impact
� Explore opportunities to acquire controlling stakes in controlled companies
26
“Sustainable Ambition 2007–2012” – The view of the future
Focus activity on two strategic business areas on the basis of distinctive competences — construction and concessions / services
Global assessment of SdC Group areas
MarketMarketMarketMarket MultiplesMultiplesMultiplesMultiples CapCapCapCap/ EBITDA / EBITDA / EBITDA / EBITDA
10,7%10,7%10,7%10,7% 0,0%0,0%0,0%0,0% n.dn.dn.dn.d.... 33,2%33,2%33,2%33,2%
Weight in Group Weight in Group Weight in Group Weight in Group total [%]1) total [%]1) total [%]1) total [%]1)
45,8%45,8%45,8%45,8% 14,7%14,7%14,7%14,7% 38,5%38,5%38,5%38,5% 1,1%1,1%1,1%1,1%
5555----6666 n.dn.dn.dn.d.... 8888----9999 3333----4444
PREVIOUS BUSINESS PLAN (2005)PREVIOUS BUSINESS PLAN (2005)PREVIOUS BUSINESS PLAN (2005)PREVIOUS BUSINESS PLAN (2005)
21,021,021,021,01)1)1)1) >21,021,021,021,01111))))2525252537373737
2006F2006F2006F2006F 2010F2010F2010F2010F
8888 8888
2006F2006F2006F2006F 2010F2010F2010F2010F
0,60,60,60,6 4,84,84,84,8
2006F2006F2006F2006F 2010F2010F2010F2010F
0,60,60,60,6 2,02,02,02,0
2006F2006F2006F2006F 2010F2010F2010F2010F
The Construction and Concessions areas have a good fit with SdC’s present core competences: construction of buildings, civil engineering works, airports and Metro systems; establishment of consortia with other companies; and definition and design of financing models
1) Including an EBITDA equivalent in Scutvias, CPE and Indáqua (multiplying the EBITDA of each company by SdC’sstake in that company) 27
“Sustainable Ambition 2007–2012” – The view of the future
Business Portfolio
Align the portfolio of businesses by eliminating industry and real estate as strategic development areas
The industry business should cease to be a strategic priority and the companies should be absorbed into theconstruction area
The real estatereal estatereal estatereal estate business should cease to be core should cease to be core should cease to be core should cease to be core in the strategyin the strategyin the strategyin the strategy and should focus on low risklow risklow risklow riskselective opportunities (with low capital investment) in AngolaAngolaAngolaAngolaand PortugalPortugalPortugalPortugal
28
“Sustainable Ambition 2007–2012” – The view of the future
Construction Markets
Three core markets with a physical presence founded on construction — Portugal, Angola and the USA (Florida) — complemented by a new platform for growth to be selected in the next few years
EUAEUAEUAEUA
ANGOLAANGOLAANGOLAANGOLA
PORTUGALPORTUGALPORTUGALPORTUGAL
MAGREB+GOLFOMAGREB+GOLFOMAGREB+GOLFOMAGREB+GOLFO
EUROPA DO EUROPA DO EUROPA DO EUROPA DO LESTELESTELESTELESTE
Core Core Core Core marketsmarketsmarketsmarkets
New platform for growth to be selected in 2New platform for growth to be selected in 2New platform for growth to be selected in 2New platform for growth to be selected in 2----3 years 3 years 3 years 3 years 29
“Sustainable Ambition 2007—2012” — The view of the future
Three core markets with a physical presence founded on construction —Portugal, Angola and the USA (Florida) — complemented by a new platform for growth to be selected in 2-3 years
Construction markets
� Three core markets with a physical presence founded on construction:
- Portugal - North, Islands and intensification in Centre/South
- EUA (Florida)
� New platform for growth to be selected in 2-3 years depending on the attractiveness of:
- Eastern Europe — Romania, or other less developed markets
- Magreb - Argélia
- The Gulf — United Arab Emirates, Qatar, Saudi Arabia, Qatar?
- Other construction markets exploited opportunistically —Eastern Europe (less developed markets), PALOPs, Spain (frontier region with Portugal)
30
“Sustainable Ambition 2007–2012” – The view of the future
Win more concessions internationally and nationally in areas where SdChas distinctive competences
Strategy for the development of concessions
� Win more concessions in Portugal, Europe, the USA and Brazil, in areas where SdC has distinctive competences, with an emphasis on:
Motorways/bridges
Airports
Metro systems
Car parks
� Support and foster the growth of Indáqua in the Environment area in Portugal and Eastern European markets
� Prepare the ground for diversification / deepening of concessions from 2010 onwards, developing competence in, among others:
Infrastructure management services — motorways / buildings
Renewable energy sources
Prisons, others31
“Sustainable Ambition 2007–2012” – The view of the future
Align management processes and systems
Align management processes and systems to maximize efficiency and optimize costs
� Simplification of the organizational and corporate structure
� Implementation of value-based management concepts
� Explore Group synergies
� Procurement - works and general purchases
� Market Surveys / Selection of opportunities
� Commercial efficiency
� Operational efficiency minimizing operating costs
� Reduction of overlaps between companies P
riorityfor action
32
“Sustainable Ambition 2007–2012” – The view of the future
Strategy implementation requirements
Align the corporate structure, governance and organizational models, and competences (human resources) to support implementation of the strategy, and strengthen the institutionalimage and ability to influence key decision-makers
33
“Sustainable Ambition 2007–2012” – The view of the future
Align the corporate structure, governance and organisational models, and competences (human resources) to support implementation of the strategy, and strengthen the institutional image and ability to influence key decision-makers
Strengthen presencein Lisbon
Strengthen institutional image
Align organisational modeland management processes
Implement process of change management
Negotiate preferential support/ partnerships
Alignment of governancemodel
Strategy implementation requirements
Levels of management in Group
Structure of Boards Independent Board Directors
Business growth culture
Creation of shareholder value
SGPS as strategic holding
Alignment of corporate centre and principal management processes
Closeness to key decision-makers
Truly national / international Group
Decision makers
Analistas de mercado PeersPortuguese and internationalfinancial institutions
1111 2222
3333
44445555
6666
34
“Sustainable Ambition 2007–2012” – The view of the future
Assumptions for Business Plan
35
“Sustainable Ambition 2007–2012” – The view of the future
The vision for the development of the Group should be based on the creation of value through focused diversification in services / concessions and growth of the construction business
- Equivalent income ≥≥≥≥ 1000 million Euros1000 million Euros1000 million Euros1000 million Euros
- Equivalent EBITDA ≥≥≥≥ 13%13%13%13%
- Weight of concessions and Services in equivalent EBITDA ≥≥≥≥ 50%50%50%50%
- ROE ≥≥≥≥ 15%15%15%15%
- ROCE construction ≥≥≥≥ 8%8%8%8%
36
“Sustainable Ambition 2007–2012” – The view of the future
SdC Consolidated + Equivalence of Concessions
The business plan assumes a high rate of growth in SdC’s turnover, based on growth in concessions
SdC equivalent turnover
1) Excluding adjustments
2) Includes contribution to EBITDA of shareholdings in concessions
SdC consolidated equivalent turnover [Mio. EUR]
5%
13%
CAGRCAGRCAGRCAGRConstructionConstructionConstructionConstruction 4%4%4%4% 12%12%12%12%
EBITDA
586586586586 618618618618
1.1421.1421.1421.142
55555555 61616161124124124124
2006200620062006 2007200720072007 2012201220122012
10%15%
Breakdown of equivalent EBITDA [2012; delta 2006]
Construction(-20p.p.)
Industry (-1p.p.)
Real Estate (+2p.p.)
Concessions2) (+12p.p.)
Construction of concessions (+6p.p.)
38%38%38%38%
10%10%10%10%
2%2%2%2%
41%41%41%41%
8%8%8%8%
1)1)1)1)
37
“Sustainable Ambition 2007–2012” – The view of the future
Breakdown of equivalent EBITDA [2012]
Construction
IndustryReal Estate
Concessions
Construction ofconcessions
38%38%38%38%
10%10%10%10%2%2%2%2%
41%41%41%41% 8%8%8%8%
Breakdown of Enterprise Value [% total]
ConcessionsConstruction ofconcessions
Construction
IndustryReal Estate
28%28%28%28%
11%11%11%11%2%2%2%2%
54%54%54%54% 5%5%5%5%
The concessions area will occupy a weight of ~50% in EBITDA and enterprise value in 2012
Breakdowns of EBITDA and Enterprise Value by business area
38
“Sustainable Ambition 2007–2012” – The view of the future
Construction
The construction business will become increasingly international, with sustained growth in profitability
Consolidated turnover of the construction business
Consolidated equivalent turnover in construction [Mio. EUR]
Breakdown of construction equivalent EBITDA1) [2010-12; delta 2006]
Angola (-20p.p.)
Other markets (+11p.p.)
EUA (+2p.p.)
Portugal(8p.p.)
Concessions(+14p.p.)
18%18%18%18%26%26%26%26%
9%9%9%9%
17%17%17%17%
30%30%30%30%
1) Excluding adjustments
4%4%4%4%
12%12%12%12%
EBITDA EBITDA EBITDA EBITDA Margin [%]Margin [%]Margin [%]Margin [%] 7,7%7,7%7,7%7,7% 6666----7%7%7%7% 6666----7%7%7%7%5,3%5,3%5,3%5,3%
516516516516 538538538538
942942942942
40404040 28282828 60606060
2006200620062006 2007200720072007 2012201220122012
----28%28%28%28% 16%16%16%16%
39
“Sustainable Ambition 2007–2012” – The view of the future
Construction
Nevertheless, it is estimated that there will be a significant increase in the home market Consolidated turnover of the construction business
Breakdown of growth in income of the construction business (not consolidated)
Source: Project team
Turnover [Mio. EUR]
PortugalPortugalPortugalPortugal
ConcessionsConcessionsConcessionsConcessions
AngolaAngolaAngolaAngola
USAUSAUSAUSA
RomaniaRomaniaRomaniaRomania
OthersOthersOthersOthers
4th 4th 4th 4th MarketMarketMarketMarketn.an.an.an.a....
n.an.an.an.a....
18,218,218,218,2
CAGR 2006-2012
51,1%51,1%51,1%51,1%
0,3%0,3%0,3%0,3%
3,9%3,9%3,9%3,9%
9,2%9,2%9,2%9,2%
502502502502
566566566566
950950950950
29%29%29%29% 31%31%31%31%26%26%26%26%
36%36%36%36%33%33%33%33%
24%24%24%24%27%27%27%27% 18%18%18%18%
14%14%14%14%3%3%3%3% 5%5%5%5%
19%19%19%19%
11%11%11%11%
8%8%8%8%5%5%5%5%4%4%4%4%
1%1%1%1%5%5%5%5%
2006200620062006 2007200720072007 2012201220122012
40
“Sustainable Ambition 2007–2012” – The view of the future
Concessions
The business plan assumes major investment / growth in the concessions business
1) Excludes debt in concessions holding
Trend in income [Mio. EUR]
EBITDAEBITDAEBITDAEBITDAMarginMarginMarginMargin
80%80%80%80% 73%73%73%73% ~60%~60%~60%~60%
16%16%16%16%
26%26%26%26%
Breakdown of EBITDA [Mio. EUR]
6%6%6%6%
21%21%21%21%
2424242428282828
88888888
2006200620062006 2007200720072007 2012201220122012
19191919 20202020
53535353
2006200620062006 2007200720072007 2012201220122012
Breakdown of growth in the concessions business — consolidated
41
“Sustainable Ambition 2007–2012” – The view of the future
Concessions
The focus in concessions will initially be on motorways, with other types of concessions being developed later
Breakdown of growth in the concessions business
Concessions — breakdown by type [2012]
Income EBITDA Investment fixed assets
Financial investment
Debt1)
Metro systems
Car parks
Environment
Motorways
Airports
Others
62%62%62%62%
79%79%79%79%
60%60%60%60% 63%63%63%63%
47%47%47%47%
9%9%9%9%
7%7%7%7%
9%9%9%9% 11%11%11%11%
5%5%5%5%
18%18%18%18%
13%13%13%13%
10%10%10%10% 2%2%2%2%
9%9%9%9%
0%0%0%0%
1%1%1%1%
5%5%5%5% 7%7%7%7%27%27%27%27%
0%0%0%0%0%0%0%0%
14%14%14%14% 13%13%13%13%11%11%11%11%
12%12%12%12%
2%2%2%2%
2%2%2%2% 4%4%4%4% 1%1%1%1%
100%100%100%100% 100%100%100%100% 100%100%100%100% 100%100%100%100% 100%100%100%100%
Source: Project team
1) Includes contribution to debt of shareholdings in concessions
42
“Sustainable Ambition 2007–2012” – The view of the future
The business plan will enable the Group to achieve the proposed indicators for internationalization and diversification
Turnover and profitability by segment [2006]
Internationalisation [% of income]
1)
Diversification [% of EBITDA]
SdC15-17SdC
10-12SdC 06(equiv.)
Balfour Beatty
Amec
ACSSomague
T.Duarte
Mota Engil
OHL
Eiffage Acciona
Bam
Bouygues
Ferrovial
Hochtief
Skanska
Vinci
FCCSacyr
SdC
0%0%0%0%
20%20%20%20%
40%40%40%40%
60%60%60%60%
80%80%80%80%
100%100%100%100%
0%0%0%0% 10%10%10%10% 20%20%20%20% 30%30%30%30% 40%40%40%40% 50%50%50%50% 60%60%60%60% 70%70%70%70% 80%80%80%80% 90%90%90%90%
43
“Sustainable Ambition 2007–2012” – The view of the future
The indicators for SdC in 2012 point to a performance in line with the past performance of companies that create the greatest value
EBITDA EBITDA EBITDA EBITDA MarginMarginMarginMargin
Ferrovial[2006]
OHL
[2006]
Vinci
[2006]
BankBankBankBank debtdebtdebtdebt / EBITDA/ EBITDA/ EBITDA/ EBITDA
18,8%18,8%18,8%18,8%
15,315,315,315,3
14,9%14,9%14,9%14,9%
4,74,74,74,7
10,3%10,3%10,3%10,3%
3,83,83,83,8
≥≥≥≥ 13%13%13%13%
TurnoverTurnoverTurnoverTurnover CAGR CAGR CAGR CAGR
TurnoverTurnoverTurnoverTurnover ConstructionConstructionConstructionConstruction BusinessBusinessBusinessBusiness CAGR CAGR CAGR CAGR
27,0%27,0%27,0%27,0%
12,6%12,6%12,6%12,6%
11,3%11,3%11,3%11,3%
10,0%10,0%10,0%10,0%
12,9%12,9%12,9%12,9%
11,0%11,0%11,0%11,0%
13,0%13,0%13,0%13,0%----15,0%15,0%15,0%15,0%
12,0%12,0%12,0%12,0%----14,5%14,5%14,5%14,5%
ReturnReturnReturnReturn onononon EquityEquityEquityEquity 21,4%21,4%21,4%21,4% 13,0%13,0%13,0%13,0% 13,3%13,3%13,3%13,3% ≥≥≥≥ 15%15%15%15%
4,0x4,0x4,0x4,0x----4,5x4,5x4,5x4,5x
ReturnReturnReturnReturn onononon Capital Capital Capital Capital EmployedEmployedEmployedEmployed 2,3%2,3%2,3%2,3% 6,6%6,6%6,6%6,6% 3,5%3,5%3,5%3,5% 5,5%5,5%5,5%5,5%----6,5%6,5%6,5%6,5%
SdC target
44
“Sustainable Ambition 2007–2012” – The view of the future
The Business Plan shall permit a reasonable return policy for the invested capital
� Own capital’s recovery on the individual accounts of Grupo Soares da Costa SGPS will enable dividends distribution from 2009 onwards
� Payout ratio > 50%
� Dividend yield Goal Goal Goal Goal ≥≥≥≥ 2,5%2,5%2,5%2,5%
45
2008 Forecasts
46
2008 Forecasts
2008 Budget:Main Assumptions
- Full consolidation of “Contacto”- Confirmed
- Full consolidation of “CPE” — Confirmed
- Proportional consolidation of Scutvias — Depending of transactions approval
- Euro — Dolar exchange rate 2008 January / February average
47
2008 Forecasts
Order Book by Business Areas
Construction
Industry
Values in thousands euros
48
2008 Forecasts
Order Book by Geographic Markets
NationalNationalNationalNational
USAUSAUSAUSA
AngolaAngolaAngolaAngola
IsraelIsraelIsraelIsrael
Costa RicaCosta RicaCosta RicaCosta Rica
RomaniaRomaniaRomaniaRomania
S. Tome and PrS. Tome and PrS. Tome and PrS. Tome and Prííííncipencipencipencipe
MozambiqueMozambiqueMozambiqueMozambique
GuineaGuineaGuineaGuinea----BissaoBissaoBissaoBissao
Values in thousand euros
49
2008 Forecasts
- “Terceira” Hospital (in tender)
- “All Saints” Hospital (Lisbon)
- Dublin´s LRT (in tender)
- High Speed Railway (Caia)
- 8 Portuguese road concessions (4 in tender)
- Gaia underground and land parking
- Viana do Castelo parking
- Romania highways
- USA highways pre-qualification
- Russian metropolitan pre-qualification
- Airports: Concessions / ConstructionConcessions / Exploration
Concession Projects
50
2008 Forecasts
BA Construction (including industry) | 728
Values in thousands euros
BA Concessions | 42
Real Estate activities | 10
Turnover by Area — 2008 Forecast
51
2008 Forecasts
Values in thousands euros
BA Construction (including industry) | 46
BA Concessions | 31
Real Estate activities | 3
EBITDA by Business Ares — 2008 Forecasts
52
2008 Forecasts
9%8,5%8%ROCE Construction
12,2% 81%9,3%15%ROE
39% 78%n.a.50%EBITDA Concessions Contribute
10% 77%13%EBITDA / Turnover 6,6%
780 78%5511000Turnover
2008 (Forecast)2008 (Forecast)2008 (Forecast)2008 (Forecast) %%%%2007 (real)2007 (real)2007 (real)2007 (real)
62%
n.a.
51%
55%
%%%%TargetTargetTargetTarget ““““SASASASA””””
Values in thousands euros
“Sustainable Ambition 2007/2012”- Achievement Targets
53
1st Quarter 2008 Results
Values in million euros
Company Presentation