criteria caixacorp results presentation · 2010. 8. 2. · abertis 60 repsol ypf 33 ... diagonal,...

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Criteria CaixaCorpResults Presentation

Interim ReportJanuary - September 2007

2

Q3 Highlights

Market Environment:Financial markets turmoil

Liquidity squeezeHighly leveraged sectors penalizedBad results in banking sectorAlthough Spanish economy prospects revisited, growth continues above peers

Criteria CaixaCorp:Pre-IPO reorganization completedSuccessful Roadshow and IPO New strategy announcedGreenshoe exercised and blackout finalized

3

Q3 Highlights – Markets Evolution

Points -70.72% Var. -15.3%

Points +734.6% Var. + 5.0%

Points -243.56% Var. - 5.4%

Value Evolution30jun-15nov

12.500

13.000

13.500

14.000

14.500

15.000

15.500

16.000

16.500

2-jul 16-jul 30-jul 13-ago 27-ago 10-sep 24-sep 8-oct 22-oct 5-nov

3.800

3.900

4.000

4.100

4.200

4.300

4.400

4.500

4.600


340

360

380

400

420

440

460

480


• Top historical levels in spite of credit crisis

• Index readjusted duringQ1&Q2 due to Real State re-valuations

• Far from top anual levels due to creditcrisis and US dollarexchange rate down.

• Banking, FinancialServices and Insuranceis dragging the indexdown

• General decrease dueto credit crisis. Minimunannual levels

• 19% market cap. decrease since dec’06

CommentsIBEX 35

Eurostoxx 50

DJ Eurostoxx Banks

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Criteria CaixaCorp Portfolio

FinancialServices

Gas Natural 35.5%Repsol YPF 12.6%

Agbar 23.5%Telefónica 5.5%

Abertis 21.0%

BME 3.5%

% ownershipEnergy

Infrastructure

Services/ Other

BPI

Boursorama

Bank of East Asia

Port Aventura Group CaiFor (Insurance)

Specialized Financial Services

25.0%

20.5%

4.2%

100%

100%

97.1%

% ownership

% ownership % ownership

6,3003,866

2,926

9374,978

129

1,122

173

258

2,179

447

914

Real State Assets 100% 81

Value MM€ Value MM€

Value MM€ Value MM€

List

edN

on li

sted

(In process of disposal)

Value at Sep. 30th

TOTAL 20,131 4,179

17%83%GAV %

5

Listed GAV – Evolution

CriteriaSince 2004 +66.4%YTD 07 +20.5%

IBEX - 35Since 2004 +57.2%YTD 07 +11.8%

Eurostoxx 50Since 2004 +14.9%YTD 07 + 5.0%

10000

12000

14000

16000

18000

20000

22000

ene-04 jul-04 ene-05 jul-05 ene-06 jul-06 ene-07 jul-07

€ in

mill

ion

s

IBEX 35

EUROSTOXX 50

Criteria CaixaCorp

Listed Portfolio

Nov-07Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07

Criteria CaixaCorp listed portfolio performance vs. Reference indicesValue Evolution

15 nov

6

Portfolio – Listed - Price Evolution

€/Share 30/06/2007 15/11/2007 Performance vs Index (%)

Listed - Services (comparable to IBEX 35)

EnergyGas Natural 45.13 42.30 -12%Repsol YPF 29.25 25.66 -18%

InfraestructureAbertis 23.03 22.77 -7%

Services/OtherAgbar 27.19 27.51 -4%Telefónica 16.54 22.61 31%BME 43.45 49.49 8%

Listed - Financial (comparable to DJ Eurostoxx Banks)

BPI 6.58 5.46 -4%Boursorama 12.90 9.43 -14%Bank of East Asia 4.17 4.25 15%

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In July 2007, Criteria Caixa Corp agreed to purchase the 50% stake in CaiForand the 20% stake in SegurCaixa owned by Fortis. This transaction that has been completed on November 12th.

Main figures(Spanish

Insurance GAAP)

Portfolio – Non listed Financial

100% 100%80%20%

0.5% 0.5%

100%

VidaCaixa: Leader in the Spanish life insurance market in both individual and collective segments

SegurCaixa Non-life bancassurance products in Spain, mainly focused on home insurance. In April 2007, it launched car insurance products

AgenCaixa: company that integrates the more of 300 commercial advisors of CaiFor Group

Shareholding structure after the transaction

30.09.06 30.09.07 % changeRisk Premiums (€MM) 353 437 24%Savings Premiums (€MM) 729 766 5%Net Profit (€MM) 97,7 115,9 19%

31.12.06 30.09.07 % changeClients (milions) 2,91 3,03 4%AuM (€MM) 25.875 26.797 4%Technical Provisions (€MM) 16.173 15.977 -1%Pension Funds (€MM) 9.702 10.820 12%

DividendsDistributed to Criteria

€ MM40

2004 2005 2006 07 Q345 65 44

€ MM 2004 2005 2006 07 Q3

8

4%3,4093,274Number of visits (m)

22.6

47.0

150

Sept 30th, 2007

2%

6%

7%

% Change€ MM Sept 30th, 2006

Net Revenues 140.4

EBITDA 44.4

Net income 22.1

Mainfigures

Portfolio – Non listed Non Financial

Business description

PortAventura is the largest leisure centre in southern Europe with approximately four million visits in 2006Located in Catalonia, the company currently operates– One theme park with 32 attractions– One water park– Three four-star thematic hotels

Real estate projects

PortAventura is in the process of constructing:

– Three golf courses, to be positioned as an international golf destination

– A convention center with capacity for 4,000 people

Portfolio of land to 311.7 hectares capable of urbanisation

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3Q Investments

(€ M)

Services stakes 120Abertis 60Repsol YPF 33Telefónica 27

Financial stakes 1,238Caifor acquisition 950The Bank of East Asia 269Others 19

Total 3Q Investments (committed and executed) 1,358

Investment policy in line with the strategy set by management, with higher weight of financial stakes and seeking a higher degree of influence

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3Q Divestments

Caprabo (distribution):In September, the divestment transaction (total of €179M) was completed, obtaining consolidated gross capital gains of €90M (€81M after taxes)IRR since 2003 (gross): 8%

Occidental Hoteles Management (leasure):At the end of July, the divestment of this stake (total of €275M) was carried out, generating consolidated gross capital gains of €50M (€45M after taxes).IRR since 1998 (gross): 1.46%

Total 3Q Divestments €454M

Divestment policy in line with the strategy set by management, with higher asset rotation and moving towards financial stakes

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NAV evolution since June

25,473

30.10.07

(5,008)

€20,465 MM

GAV

Net Debt

27,363

(1,848)

30.09.07 10.10.07

25,553

(1,547)

IPO Proceeds

3,452

€24,006 MM €25,515 MM

15.11.07

26,915

(1,378)

€25,537 MM€7.78/share €7.30/share €7.59/share€7.76/share

NAV

Green shoe Proceeds396

(4,708)

€21,396 MM

26,104

30.06.07

€8.14/share3,363 million shares3,287 million shares2,630 million shares

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5,0

5,1

5,2

5,3

5,4

5,5

5,6

5,7

10/10/2007 17/10/2007 24/10/2007 31/10/2007 7/11/2007 14/11/2007

28%

29%

30%

31%

32%

33%

34%

35%

Share evolution

-3.81%

+4.06%

NAV per share

Price (€)

-33.5%

Discount (%)

3,363 million shares3,287 million shares

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5,00

5,10

5,20

5,30

5,40

5,50

5,60

5,70

5,80

10-oct 16-oct 22-oct 26-oct 1-nov 7-nov 13-nov

Pric

e (€

)Share vs. IBEX since listing

-3.81%

+6.09%Ibex

Criteria (€)

+6.54%

Criteria Listed Portfolio

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Financials


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P&L Criteria non-consolidated

Notes: Information prepared in accordance with the Spanish GAAP. Information not audited

Main items for Criteria CaixaCorp’s non-consolidated income statement January-September

€ in millions 2007 2006 % Change

Income from capital shares 403 367 10%

Recurring expenses -8 -7 14%

Operating Recurring Profit 395 360 10%

Non-recurring profit 1.493 621 140%

Pre-tax profit 1,937 1,095 77%

Net profit 2,030 877 132%

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P&L Criteria Group

Main items for Criteria CaixaCorp’s consolidated income statement January-September € in millions 2007 2006 %

Change Income from equity investments 192 195 - 2% Profit of companies accounted for using equity method 489 348 41%

Profits/losses (net) of companies using the full or proportionate consolidation method 155 114 36%

Recurring net profit 836 657 27%

Non-recurring profit 382 775 - 51%

Net profit attributed to the group 1,218 1,432 - 15%

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Leverage

After its IPO, Criteria will leverage its GAV to finance investment opportunities, with net debt between 10% - 20% of GAV

Leverage policy

Net debt proforma

The IPO proceeds, that amount to € 3,848 MM (including greenshoe), will be used to pay down existing debt, reducing the ratio Debt/GAV to 4,3%The company currently holds credit lines up to €5,400M at a cost of Euribor + 30 bps

June 30th, 2007 Sept 30th, 2007

GAV 26,104 25,473

Net debt position (4,708) (5,008)

Debt/ GAV 18.0% 19.7%

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Dividend Income

During the last quarter of 2007, several of Criteria’s underlying announced changes in their dividend policy, effective as of 2008:

Telefonica: Oct 11th announces 1€/share based on result 2008Repsol YPF: Nov 1st announces a dividend increase of 40% Gas Natural: on Strategic Plan announce at least a 10% increment of dividends.

Portfolio’s 2008

dividend increase

Criteria dividends

policy

High and recurrent dividend income from the main investments of the current portfolio allows Criteria CaixaCorp to offer attractive and stable dividend income to its shareholders Most of the dividends received in our portfolio will be passed through to shareholders. Pay-Out around 90% of the net recurring non-consolidated income

3Q dividend increase

January-September € in millions 2007 2006 %

DIVIDEND INCOME 403 367 10%

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Investor Relations


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Investor Relations

Nov 17th, end of black-out and beginning of the “public period”

Investor Relations department

Grounds and principles for the IR function:More-disclosure communication policy (NAV, unlisted assets, etc.)Information on a regular basis (Quarterly results, AGM, roadshows, etc.)Information upon certain events (press releases & calls for corporate operations, agreements, dividends, and other material facts)Development of specific communication channels for the vast retail shareholder base (+360,000)Service and availability (hot-line, e-mail and meetings)

Phone: +34 93 411 75 75e-mail: [email protected]: Avda. Diagonal, 621-629, Torre II, Planta 3ª.

08028 Barcelona, Spain

Our aims: Transparency and serviceBest in Class in Investor Relations.

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Next Events

Webcast. Follow-up calls with investors and analysts

Meetings in London & NY

One-on-one calls and meetings

Enhance and complete website contents

Roadshows twice a year

Quarterly and annual results (webcasting)

Investor day

Conferences & Exhibitions

November

December

On request

March

Q1 & Q3

Jan/Mar/Jul/Oct

Q3

All year round

2007

2008

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2008 Outlook


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New strategy by business line

Serv

ices

Listed

International retail banking

Leverage off existing know-howInfluence corporate transactions and expansion processes

Markets with growth prospectsBenefiting from “la Caixa”’sknow-how in retail banking

Strategy Market

Weight in GAV

Europe (primarily Spain)

Europe (Central and Eastern Europe and neighbouring countries)USAsia

Spain and Europe

Growth and consolidation in Spain leveraging off “la Caixa”’sstrong commercial networkComplementing retail international expansion

Insurance and specialised financial services

TodayMedium / Long term objective

82%

7%

11%

60-40%

40-60%

Crit

eria

Cai

xaC

orp

Fina

ncia

l

Increasing exposure to financial businesses

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Relevant events in our portfolio

BPI: Currently under negotiations for a merger with BCP. No calendar has been established.

Gas Natural: New Strategic Plan sets a good basis for continued value creation, reduces company’s risk profile and provides attractive potential returns.

Agbar Takeover: Clearance from European Commission and expected authorization from CNMV soon.

BEA: “la Caixa” has signed a strategic agreement with The Bank of East Asia which adds more value to our recent investment.

IBEX 35: High expectations to be included very soon.

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2008 Main Objectives

To create long term value for our shareholders through:

Shareholder remuneration attractive proposal

Active Management

Highly competitive operating costs (below benchmarks)

Excellence in Corporate Governance

Best in class in Investor Relations

Management remuneration aligned with value creation

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Criteria CaixaCorp

Q&A

27

Additional information


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Listed GAV details

Company Num. of shares

Price per share

Market value (€ MM)

%/ GAV

Gas Natural 159,078,266 39.60 6,299 25.8

Repsol YPF 154,344,000 25.05 3,866 15.8

Abertis A 125,603,264 21.93 2,754 11.3

Abertis B 8,259,753 20.79 172 0.7

SGAB 35,177,029 26.65 937 3.8

Telefónica 216,644,332 19.63 4,253 17.4

Telefónica Equity Swap 45,000,000 16.14 726 3.0

BME 2,953,259 43.54 129 0.5

Banco BPI 190,185,268 5.90 1,122 4.6

Boursorama 17,758,648 9.72 173 0.7

Bank of East Asia 65,046,171 3.96 258 1.1

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Consolidation Rules

Main differences between non-consolidated and consolidated income statement

Dividends received from the companies held directly by Criteria

Non- Consolidated income statement (Spanish GAAP) Consolidated income statement (IFRS)

Only dividends from the Available-for-sale holdings

Income from equity investments

Profits and losses of companies full or proportionate consolidated

Profit from divestments materialized by Criteria (profits obtained from divestments made by holding subsidiaries are not included)

Profit from divestments materialized by Criteria Group, considering consolidated costs

Key information to consider:Non- Consolidated Financial

Statements Consolidated Financial Statements

Leverage (except treasury maintained in subsidiary holding companies)

Recurrent income key for the calculation of the dividends to distribute to shareholders

Profit from divestments

Profit attributed to the group

criteria caixacorp results presentation · 2010. 8. 2. · abertis 60 repsol ypf 33 ... diagonal,...

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