Sacyr Sa · BME:SCYR
Sacyr Sa — Sacyr Vallehermoso — Investor Presentation (October 2004)
31 slides from Sacyr Sa's investor presentation, Oct 29, 2004
Slide 1: Strategy and 2004 Closing Forecast
Sacyr Vallehermoso STRATEGY AND 2004 CLOSING FORECAST Madrid, 29 October 2004
Slide 2: Contents
Contents • Market Situation • Strategy • 2004 Earnings and Prospects 2
Slide 3: Market Situation
Promovemos Ideas Constructivas Market Situation 5 NUT 5 oe a
Slide 4: Macroeconomic Outlook
Market Situation: Macroeconomic Outlook MACROECONOMIC OUTLOOK 2003-2005 (Change in % y-o-y except otherwise stated) 30th July 2004 • The economic outlook points to: – GDP is expected to grow more than 2003 2004 2005 2.5%. Domestic consumption 3.3 3.4 3.3 – This growth is backed by an increase - Priv
Slide 5: Market Situation: Concessions
Market Situation: Concessions State road network (Km.) Traffic: 2001 2002 2003 • From 1980 through 2002, ADT has grown 4.77% High capacity roads 8,082 8,368 8,765 annualized. Toll highways 1,820 1,933 2,040 Free highways 5,564 5,756 6,042 • The percentage of light vehicles/total sector traffic is Tw
Slide 6: Concessions: Total Vehicle Pool
Market Situation: Concessions Total Vehicle Pool: • 2003 vehicle pool was 25.2 million vehicles, with an upward trend. • The ratio of inhabitants per vehicle declined, ranking in 2003 at 2.26 inhabitants per vehicle. • As of September 2004, 11.2% more vehicles were registered than the same period la
Slide 7: Rental Property: Offices
Market Situation: Rental Property Avg. Rental Price performance Offices: • In 1H 2004, take-up in Madrid market was 330,000 m2, up 20.8% on the same period last year, setting a positive trend with regard to recovery of demand. • This improvement in demand has stimulated the recovery of prices, which
Slide 8: Rental Property: Shopping Centers
Market Situation: Rental Property Shopping Centers: • At the end of 2003, the amount of m2 in Spain was 9.1 million and the total number of shopping centers 428. • Lettable surface will increase by 31% in 2004- 2007, if all planned projects are carried out. • In 2003 a strong level of rents growth a
Slide 9: Construction: Public Tendering
Market Situation: Construction Public Tendering: By type of Work Public Bidding: • Public bidding in construction has shown a constant/ascending line since 1994 up to 2003. • Civil engineering sector has been the principal player of this growth, due to basically the projects executed within the Tran
Slide 10: Construction: 2004 Performance
Market Situation: Construction 2004 Performance: • Indicators related to construction have reduced their growth rates: • Apparent cement consumption grew 3.5% by August, versus a 4.8% the previous year. • Building permits on construction projects pointed to a moderation of activity with respect to y
Slide 11: Housing: Activity
Market Situation: Housing Activity: • Given the present levels of housing starts, activity in the residential building segment will post growth rates in 2004 similar to those of 2003. • This high housing production volume apparently exceeds the needs arising solely out of demographic factors, which
Slide 12: Housing: Demographic Features
Market Situation: Housing Demographic features Distribution of Spain resident population (Spanish/foreigners) • Slight increase in birth rate in recent years. • Baby-boomers (1964/1978 period) generation has reached marriage age. • Foreign population has increased nearly five-fold in the last decade
Slide 13: Housing: New Families Structure
Market Situation: Housing New families structure: • On-going reduction of Distribution of households by number of Number of people per household households: Average menbers (In %) persons per household is below 3 members. Amount of of people living alone is on the rise, and therefore the number of n
Slide 14: Housing: Economic Aspects
Market Situation: Housing Economic aspects: • Spanish active population performance shows the growing incorporation of women into the workworld. This implies an increase in household disposable income to dedicate to acquiring a home. • The accessabilitiy ratio indicates a decline with respect to rat
Slide 15: Strategy and Forecasts
Promovemos Ideas Constructivas S \ Sacyr Vallehermoso Strategy and Forecasts A at; a . hii te!
Slide 16: Concessions: Present Situation
Strategy: Concessions Present situation: • Stakes in 24 concessionaires, representing a total of 2,750 km of highways and 19 km of inner-city rail systems. • As at June 2004, investment in highways of €4,142 million, financed through long-term project finance. • Locked growth in this area after the
Slide 17: Concessions: Target
Strategy: Concessions Target: In Growth • Consolidate and increase domestic presence in tollroads and expand presence to other new geographic areas: • Countries such as Italy, Greece or Ireland, with new projects on the boards. • Emerging nations with solid financial systems and low political risk s
Slide 18: Rental Property: Present Situation
Strategy: Rental Property Present situation: •1.4 million m2 under lease at June 2004. •97,5% occupancy rate. •Average net yield 8.2%. •Solvent clients with long-term leases. •Spanish leading rental property group by assets value and net profit. •Listed on Madrid and Barcelona Stock Exchanges, with
Slide 19: Rental Property: Target
Strategy: Rental Property Target: • Consolidate leadership position in Spanish market, providing recurrent earnings and generate capital gains on assets. • Increase letting surface in next 4 years: New products development M2 Offices 50.497 Shopping Centers 7.000 Hotels 37.259 Other Products 62.095
Slide 20: Construction: Present Situation
Strategy: Construction Present situation: • By turnover, our companies are: – 5th in Spain – 1st in Portugal – 1st in Chile • € 3,126 Million in construction backlog at June 2004, equivalent to 18 months of activity. • International presence through Sacyr Chile and Somague. • Stable growth in turnov
Slide 21: Construction: Target
Strategy: Construction Target: • Consolidate a construction company leader in profitability with a weight of around 60% in civil works and 40% in building. In Civil Works • Sustained growth, increasing market share and identifying new markets. • Sustained margins in Spanish operations and improving
Slide 22: Construction: Target Markets
Strategy: Construction Target: • Focus our business as direct contractor in the followng markets: – Spain, both in civil works as well as building through Sacyr Local – Portugal, both in civil works as well as building through Somague Companies – Chile in civil works through Sacyr Chile – Italy in c
Slide 23: Residential: Present Situation
Strategy: Residential Present situation: • Geographic diversification with a well-spread presence in the entire domestic territory: 70 cities with 250 developments. • Land reserve at June 2004 of 3.7 million m2, significant latent capital gains which guarantees 4.9 years of sales. • More than 4,000
Slide 24: Residential: Target
Strategy: Residential Target: • Increase our share and the number of homes sold in a market whose total numer of sales will be falling in future years. Land • Invest in land with a timeline for urban development of 3 to 10 years, taking advantage of sound opportunities. – Urban land or land eligible
Slide 25: Services: Present Situation
Strategy: Services Present situation: • Presence in activities of: – Integral water cycle (supply, desalination, purification) – Alternative energies (wind generation and biomass) – Facilities Management • 420 MW of alternative energy generation contracted (320 in Somague and 100 in Iberese) • 250,0
Slide 26: Services: Target
Strategy: Services Target: • Aimed at expanding in a significant proportion in activities where we have an active role and get entrance into new areas. Alternative Energies • In wind energy generation, Spain will develop 10,000 MW, possibly expandable by the needs for energy to desalinate. In Portug
Slide 27: Services: Water Cycle and Multiservices
Strategy: Services Water Cycle • SyV has activity in water distribution and treatment activties developed through Aguas de Toledo, AGS and Sadyt. • The strategy is aimed at strengthening the organic growth combined with acquisitions. Multiservices • SyV is present in gardening and landscaping throug
Slide 28: 2004 Results and Forecasts
Promovemos Ideas Constructivas S \ Sacyr Vallehermoso 2004 Results and Forecasts A at; a . hii te!
Slide 29: 2004 Results
2004 Results • Expansion of sales by more than 10%, due to organic growth in all activities and acquisitions in concessions (Ena). • Growing operating profit due to: – Expansion of operating margins due to increasing contribution of infrastructure concessions. – Sales growth with sustained business
Slide 30: 2003-2007: Performance by Areas
2003-2007: Performance by Areas Net Sales Performance by Area EBITDA performance ny Area CAGR: 18% CAGR: 12% 2003 2004 2007 2003 2004 2007 Construction H. Develop. Concessions Property Services • Sales and operating profit growth expected higher than 10% (cagr) due to: – Organic growth strategy in a
Slide 31: 2003-2007: Performance by Areas
2003-2007: Performance by Areas Net Sales Breakdown EBITDA Breakdown 1% 11% 5% 0% 8% 4% 5% 23% 9% 15% 29% 42% 55% 26% 19% 32% 34% 59% 27% 49% 23% 18% 2003 2007 2003 2007 Construction H.Develop Concessions Property Services Investment effort in recurrent activities (concessions, rental property and s
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