? Turnover grew up to EUR 28,472 million, a 98.7% increase.
? International turnover now accounts for 72.5% of the total.
? The Grupo ACS ordinary net profit grew by 8.8% to EUR 951 million.
Grupo ACS ResultsIn Euro Million
2011 2010 var.
Sales | 28,472 | 14,329 | +98.7% |
EBITDA | 2,318 | 1,432 | +61.9% |
EBIT | 1,333 | 1,039 | +28.3% |
Net Profit | 962 | 1,313 | ?26.7% |
Ordinary Net Profit from Continuing Operations* | 951 | 875 | +8.8% |
Net Investments | 2,902 | 2,317 | +25.2% |
Cash Flow from Operations | 1,287 | 1,339 | ?3.9% |
Net Debt | 9,334 | 8,003 | +16.6% |
* Profit after taxes and minority interest without including extraordinary results or the results of interrupted operations
Consolidated Results
In a difficult economic and financial environment, ACS has
increased its turnover significantly, both thanks to the
integration of Hochtief and to the international growth of
the rest of activities.
In 2011, ACS Group achieved a total turnover of EUR 28,472
million, a
98.7% increase over the prior year. International sales
accounted for
EUR 20,649 million, or 72.5% of the total, and almost
multiplied by four over the prior year.
The gross operating profit (EBITDA) climbed 61.9% to EUR
2.318 million with a sales margin of 8.1%. The earnings
before income and taxes (EBIT) grew by 28.3% to reach EUR
1,333 million with a sales margin of 4.7%.
1
The recurring net profit, i.e., the profit from continuous
activities, excluding any extraordinary results and capital
gains from asset sell?offs, increased 8.8% to EUR 951
million.
The net profit of 2011 totaled EUR 962 million, 26.7% less
than the prior fiscal year due to capital gains brought in
last year, in particular the gains from the sale of 15.5% of
Abertis in September 2010.
The capital gains obtained after the sale of assets in 2011
compensated the extraordinary losses and provisions of the
year:
? The capital gains on asset sales account for EUR 224
million and include, toll motorways, the assets of renewable
energy and transmission lines, and the sale of the hospital
waste treatment business.
? The extraordinary losses and provisions include, amongst
others, the negative results of Hochtief in the first quarter
of the year, which impacted in ACS for EUR 76 million, and
the adjustment made for reasons of prudence to neutralize the
net contribution of Iberdrola, that in 2011 accounted for EUR
126 million.
? Capital gains and extraordinary losses generated by
Hochtief from 1
June 2011, mainly in its Australian subsidiary Leighton, had
no accounting impact on the income statement of ACS.
The total backlog at the end of 2011 amounted to EUR 66,152
million, with particularly strong growth at 338.6% in the
international portfolio, which currently accounts for 80.9%
of the total.
The Construction area achieved sales in the amount of EUR
19,802 million, or 247.2% more than in 2010, thanks to the
consolidation of Hochtief in this area of the business by the
global integration method beginning on June 1, 2011.
International sales in the ACS Group's Construction business
have grown substantially to EUR 16,858 million, an amount
equivalent to 85.1% of the total construction turnover.
The gross operating profit (EBITDA) reached EUR 1,210
million, which represents a 183.4% increase and a sales
margin of 6.1%. The net profit was EUR 370 million, or 97.5%
higher than last year.
2
The backlog at the end of 2011 amounted to EUR 50,336
million, which is the equivalent of 22 months of production.
The international backlog has already come to represent 91.4%
of the total Construction portfolio.
Some of the most important contracts awarded to the Group in
2011 include the following:
? mining management contracts in Australia and Indonesia for
the extraction of coal, worth more than EUR 2,000 million
? contracts for the construction of the Royal Adelaide
Hospital and the Perth Children's Hospital in Australia worth
more than EUR
1,250 million
? the construction and remodelling of the Forth Crossing
bridge in
Scotland, a project worth a total of EUR 950 million
? the Wheatstone gas project in Australia, for more than EUR
510 million
? a contract for the construction and design of a tunnel on
the SR?
99 in Seattle (United States) worth EUR 438 million
? a contract to build a railway bridge and tunnel, stations
and viaducts for the South Island railway line in Hong Kong,
worth more than EUR 400 million
? a contract to build and maintain the A8 motorway in
Germany, worth more than EUR 380 million
? the project for the construction of the S?17 highway
section between Dabrowica and Witosa (Poland) for EUR 245
million
? a contract to refurbish the convention centre in Oakland,
California, worth nearly EUR 225 million
? a contract to build the A?308 motorway between the towns of
Iznalloz and Darro (Granada) with an investment of EUR 200
million
Sales in the Group's Industrial Services division have decreased by 1.6% to EUR 7,045 million in 2011 due to a decline in the Spanish domestic market, especially in the EPC projects segment. International sales, on the other hand, grew by 26.5% to reach EUR 3,383 million, or 48% of the total. This strong increase is due to new production in Latin American countries like Mexico, Brazil, Chile and Peru, and from the north of Europe, a region that grows more than 66%.
3
The gross operating profit (EBITDA) grew by 10.5% to EUR 907
million. The net profit rose to EUR 492 million, which is 23%
more than in the same period during the prior year.
This division finished out the period with a backlog worth
EUR 6.875 million, which is the equivalent of 12 months of
production, and a total of 60.7% originating from
international contracts.
Some of the most important contracts awarded during 2011
include:
? a "turn key" project to build the thermosolar plant of
Tonopah, in
Nevada, US, for EUR 587 million.
? the project to develop the high speed railway line between
Mecca
and Medina in Saudi Arabia for EUR 420 million.
? a project for the "turn key" construction of a 500 MW
combined?
cycle plant in Parnaíba (Brazil) worth EUR 262 million
? a contract to build the Renace II Hydroelectric Plant in
Alto
Verapaz (Guatemala), worth EUR 152 million
? the development of a CGGT plant in Querétaro, Mexico, for
EURO
116 million.
? a contract to build two wind parks in Salamanca totaling 70
MW, worth EUR 101 million
? a turnkey contract for two support facilities for the
Eldfisk II oil platform in the North Sea (Norway), worth EUR
96 million
? a contract for a maritime terminal and storage plant for
liquefied
petroleum gas in Quito (Ecuador), worth EUR 95 million
? a contract for signage and control services for a set of
highways in
Huesca, worth EUR 91 million
? a contract to build a 200 MW open?cycle power plant in
the
Lambayeque region of Peru, worth EUR 90 million
? the "turn key" project to build the CCGT plant of Great
Island, in
Ireland, with an installed capacity of 430 MW for EUR 80
million.
? a project to build a 50 MW thermosolar plant in Caceres,
worth
EUR 55 million
? a project to expand the high?voltage lines between Cuiabá
and Rio
Verde Norte in Brazil, worth EUR 50 million
? a contract to build a national gas storage terminal in
Guadalajara
(Mexico), worth EUR 35 million
? the project to build gas storage and transportation
facilities in
Saudi Arabia for EUR 44 million.
4
Environment
The Environment division achieved sales of EUR 1,686 million,
which represents a total growth of 11.6%. The gross operating
profit (EBITDA) for the division reached EUR 253 million,
with the sales margin at 15.0%. The net profits amounted to
EUR 128 million.
The division's current portfolio is valued at EUR 8,914
million euros, which is equivalent to 64 months of activity.
International markets account for 37% of the portfolio. The
most significant contract awards for the period are:
? waste collection, street cleaning and public premises
maintenance contracts in Viladecans (in Barcelona) worth a
total of EUR 106 million
? a contract to perform street cleaning and waste
transportation in
Mostoles, Madrid, for EUR 84 million.
? a contract to operate the Las Mulas dump ground in
Fuenlabrada, Madrid (worth EUR 29 million)
? a waste collection and street cleaning contract with the
Gosport
Borough Council, United Kingdom (EUR 26 million)
? an extension of the contract to operate the comprehensive
waste treatment plant in Meruelo, Cantabria (EUR 20
million)
? contracts in France worth a total of EUR 33 million for
urban waste collection in the Boucle de la Seine Communauté
de Communes (Île de France) and in the municipality of La
Ciotat (Marseille)
The funds generated by operating activities in 2011 amounted
to EUR
1,287 million, down by 3.9%. The positive operating results
and the global consolidation of Hochtief since June have been
compensated by the negative evolution of working capital from
Construction in Spain.
In 2011 net investments accounted for EUR 2,902 million.
Gross investments totaled EUR 4,775 million and disposals EUR
1,854 million.
The main line item is the EUR 1,080 million investment to
acquire approximately 22% of the equity of Hochtief. There
have also been significant investments by Hochtief itself,
which has invested EUR 1,668 million in concessions and
equipment for the mining business. Iridium has likewise
invested EUR 591 million, and the Industrial Services
division has invested EUR 1,236 million, primarily in energy
projects.
5
The most notable divestments include the ones performed by
Hochtief for EUR 655 million, which include Leighton's sale
of the HWE mining contracts, the sale of the renewable energy
assets and transmission line projects in Brazil for EUR 680
million and the sales of the Chilean highways and the I595 in
Florida for EUR 249 million.
Additionally, over the last months of the year, the Group has
agreed to sell various concession and renewable energy assets
worth a total EV of EUR 1,000 million. These projects are
still pending execution, and as such, their results were not
included in the financial statements for the period. During
2012 the funds obtained from the sale of assets, including
the closure of these transactions, will account for more than
EUR 3,000 million.
The net debt of ACS by year end 2011 is EUR 9,334 million, of
which EUR
5,965 million constitute non?recourse financing for
shareholders, including EUR 4,962 million in debt for the
vehicles used to acquire the shares of Iberdrola, which will
reach maturity in the period from late
2014 to March 2015. The remainder corresponds to the
financing of concession projects (EUR 395 million) and the
acquisition of Hochtief (EUR 608 million), which has been
recently refinanced through July
2015.
In the last twelve months Grupo ACS has refinanced more than
EUR
7,700 million. During 2011 the Group agreed to refinance long
term loans for a total of EUR 6,300 million, and the last
9th of February ACS refinanced a syndicated loan
for close to EUR 1,400 million.
The current level of debt is equivalent to 3.6 times
annualized EBITDA of
2011, and comes down to 3.0 times if the dividends received
from affiliates are accounted in the calculation.
Madrid, 29th of February 2012
6