JUNTA GENERAL DE ACCIONISTAS · Madrid, 2 de junio 2016 JUNTA GENERAL DE ACCIONISTAS. 2 1. 2015...
Transcript of JUNTA GENERAL DE ACCIONISTAS · Madrid, 2 de junio 2016 JUNTA GENERAL DE ACCIONISTAS. 2 1. 2015...
Madrid, 2 de junio 2016
JUNTA
GENERAL
DE
ACCIONISTAS
2
1. 2015 Highlights
2. 2015 Results
3. OHL’s Position
4. Good Governance & CSR
5. Resolutions Proposal
ANNUAL GENERAL MEETING 2016
Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 3
1. 2015 Highlights
3
�Strategic Plan 2015-2020Complex Macro
Environment
�Fully underwritten rights issue of €1bn
�Proven working capital recovery during the year
�Successful settlement of Sonatrach litigation €100m
�Execution of a non-core asset disposals plan
�Proactive debt management: €325m Bond issuance 2023 5.50% coupon; New syndicated loan €250m maturing 2018; Simplifying the financial structure of OHL Concesiones and refinancing of investments in Abertis and OHL Mexico
Market Concerns onLeverage & Cash Flow
Generation
�Support from world’s 4 largest auditing firms (Deloitte, PWC, EY and KPMG)
�Legal opinions issued by 3 top-rank law firms (Mijares Angoitia, Garrigues and Jones Day)
�CNMV’s accounting treatment information request, appropriately responded
�CNBV’s final resolution released
OHL MexicoReputational Crisis
Measures Adopted by OHL√2015 Challenges
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1. 2015 Highlights
2. 2015 Results
3. OHL’s Position
4. Good Governance & CSR
5. Resolutions Proposal
ANNUAL GENERAL MEETING 2016
Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 5
Growing cash EBITDA and Net Income. Reinforced capital structure
2. 2015 Results
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Revenues€4,369m
EBITDA€967m
Net Income€56m
Total Net Debt€4,007m
Recourse Net Debt€379m
+20.2%
(7.0%)
+139.7%
(28.8%)
(54.2%)
Double-digit growth in Concessions, E&C and Developments
CONSTRUCTION
Lower margins but with highercash conversion
CONCESSIONS
Signficant increase of cash EBITDA
Creating value for our shareholders
Reduction of consolidated leverage to 4.1x from 5.4x
1,3x Recourse Leverage outperforming guidance
2015 Key Financials
Concessions Cash EBITDA€285m
+33.6% Driven by strong traffic growth accross the portfolio
YoY Growth
ANNUAL GENERAL MEETING 2016 6
Commitment to controlling debt and strong liquidity position
2. 2015 Results
€1.9bn recourse liquidity available…€1.9bn recourse liquidity available…Consistent and material reduction in net recourse debt…Consistent and material reduction in net recourse debt…
€m
...leading to a comfortable recourse debt maturity profile...leading to a comfortable recourse debt maturity profile ...complemented by significant liquid value of listed assets...complemented by significant liquid value of listed assets
3.0x
Abertis Market Value
OHL Mexico Market Value
Net Market Value
Net Recourse
Debt
1,645 1,037
Non-recourse financing backed by shares Net Market Value
€m
€m€m
1
2
3
4
1.3x2.5x3.0x2.6x3.0x3.5x
Recourse Net Debt / Recourse EBITDA
Net market value of €1,136m (€1,903m assuming target prices)
Market Value at Target
Prices
Net Recourse
Debt
5.0x
€1,918m -> 1.5x gross recourse debt
ANNUAL GENERAL MEETING 2016 7
Providing the city of Montreal with reference health care structures worldwide
CHUM Hospital. Canada
ANNUAL GENERAL MEETING 2016 8
Most important road infrastructure in Miami and one of the largest public works in Florida
826/836 Motorway junction. USA
ANNUAL GENERAL MEETING 2016 9
A project to improve mobility in one of the most congested highways in Texas
Interstate Highway 35 East de Texas. USA
ANNUAL GENERAL MEETING 2016 10
Recognized by BDI for its efficient environmental management & workplace health
Northern Toll Road. Peru
ANNUAL GENERAL MEETING 2016 11
OHL Mexico’s electronic toll operator with an average daily activity of 360,000 toll charges
Televía. Mexico
ANNUAL GENERAL MEETING 2016 12
60MW EPC project delivering an 80% higher performance than a conventional plant
60 MW cogeneration plant in Veracruz. Mexico
ANNUAL GENERAL MEETING 2016 13
409 hectares destined to: Parques de Mayakoba, Mayakoba Village, Mayakoba Country Club
Mayakoba City. Mexico
ANNUAL GENERAL MEETING 2016 14
First modern tram line in Latin America with a slope of up to 12.5º
Medellin tram line. Colombia
ANNUAL GENERAL MEETING 2016 15
Modernization of the Terminal 2 at Port of Valparaiso
Cerros Valparaiso Terminal. Chile
ANNUAL GENERAL MEETING 2016 16
Extension of Line 3 of the metropolitan underground
Santiago de Chile Metro Line 3. Chile
ANNUAL GENERAL MEETING 2016 17
Over 16,170 unique elements classified of nearly 300 different types
Canalejas Project in Madrid. Spain
ANNUAL GENERAL MEETING 2016 18
Largest waste water treatment plant in Spain in terms of the technology applied to the
biofiltration process. It will give direct service to a population of 800,000 inhabitants
EDAR in Lagares. Spain
ANNUAL GENERAL MEETING 2016 19
Drilling two tunnels below the water table of the Vistula River employing a 12.60m diameter
hydro shield tunnel borer
Tunnels in Gdansk. Poland
ANNUAL GENERAL MEETING 2016 20
It forms part of the most important infrastructure project in the country known as Follo Line
High-Speed Line Ski. Norway
ANNUAL GENERAL MEETING 2016 21
OHL is involved in Spain’s largest contract awarded abroad
Mecca – Medina High Speed Railway. Saudi Arabia
ANNUAL GENERAL MEETING 2016 22
OHL’s first project in the UK to restore the emblematic War Office
Old War Office. United Kingdom
ANNUAL GENERAL MEETING 2016 23
R&D
Experimental paving. Port of Huelva. Spain. Cubipods used in the construction of a seawall in the Port of
Malaga. Spain.
First player to build an infrastructure in Spain through the PPIT* system
*PPIT: Public Procurement of Innovative Technology.
**Field Operational Test on Safe Intelligent and Sustainable Road Operation
has set the beginning of a new way of communication between driver,
vehicle and infrastructure.
FOTsis**, one of the most ambitious European initiatives for the development of new transport technologies
ANNUAL GENERAL MEETING 2016 24
Young Talent Program
Committed to People
OHL Group has deployed 600 jobs, mainly through OHL
Servicios, among people from deprived groups, in
cooperation with entities such as Fundación Integra.
Members of the international Young Talent program.
OHL seeks to engage professionals with strong potential.
600 jobs to encourage labour integration
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1. 2015 Highlights
2. 2015 Results
3. OHL’s Position
4. Good Governance & CSR
5. Resolutions Proposal
ANNUAL GENERAL MEETING 2016
Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 26
Relevant and Balanced Geographical Exposure (30 countries accross 5 continents)
3. OHL’s PositionSelective Global Presence focused on Home Markets
Home Markets
Other countries
10 in America
� Aruba
� Guatemala
� Canada
� Chile
� Colombia
� USA
� Honduras
� Mexico
� Peru
� Uruguay
11 in Europe
� Bosnia Herzegovina
� Croatia
� Spain
� Slovenia
� Slovakia
� Moldova
� Norway
� Poland
� United Kingdom
� Czech Republic
� Romania
7 in Asia
� Saudi Arabia
� Jordan
� Kazakhstan
� Kuwait
� Turkey
� Vietnam
� Oman
1 in Africa
� Algeria
1 in Oceania
� Australia
Region
∆ GDP
2016E
CPI
2016E
World 3.2% 2.8%
Developed Economies 1.9% 0.5%
USA 2.4% 0.8%
Eurozone 1.5% 0.4%
Emerging Economies 4.1% 4.5%
Mexico 2.4% 2.9%
Spain 2.6% -0.4%
ANNUAL GENERAL MEETING 2016 27
Construction | Successful implementation of the Strategic Plan
3. OHL’s Position
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Average4.7%
Successful recovery of legacy receivablesSuccessful recovery of legacy receivables Greater weight of developed markets in new contractsGreater weight of developed markets in new contracts
� Improving quality of earnings given higher cash conversion
� Lower but more predictable margins and in line with peers
� Successful resolution of the Oran litigation resulting in therecovery of €100m
2015Revenuess
YoYGrowth
2015EBITDA
YoYGrowth
€3,248m +16.5% €150m (27.3%)
2014 2015
Typically lower margins but higher cash conversion rate
€m 2014 2015 YoY Growth
Claims 964 664 (31.1%)
Provisions 464 323 (30.4%)
Net value of claims 500 341 (31.8%)
OHL Construction has successfully reduced 1/3 of legacy receivables
Legacy projects currently represent <10% of the order book
Peer 1 Peer 3Peer 2 Peer 5Peer 4 Peer 6
Construction EBITDA margin in line with peersConstruction EBITDA margin in line with peers2015 Highlights2015 Highlights
ANNUAL GENERAL MEETING 2016 28
Construction | Focus on Home Markets and improved risk control
3. OHL’s Position
Balanced average project sizeBalanced average project size
Strong and diversified €6.6bn backlogStrong and diversified €6.6bn backlog
Country Size (€m)
High-Speed Line Oslo Ski 261.7
Queens Midtown Tunnel Rehabilitation 213.1
Puebla Elevated Viaduct 17.,8
II Phase Courtland 91.1
Infrastructure Optimization CP5 - CP35 66.5
Parks Medellin River – Industrial Station Tranche 58.6
New awards for a total amount of €2.2bnNew awards for a total amount of €2.2bn
Home Markets82%
Progressive shift of revenues towards Home MarketsProgressive shift of revenues towards Home Markets
2015 Most Relevant New AwardsBetter risk control while having higher cash conversion rates
2014 2015Short-term order book represents 24.3 months of sales
20.4% of order book refers to OHL Concesiones projects
84% of 2015 revenues from Home Markets
HomeMarkets
84%
HomeMarkets
77%
ANNUAL GENERAL MEETING 2016 29
Industrial and Services | Continue gaining scale
3. OHL’s Position
OHL IndustrialOHL Industrial OHL ServicesOHL Services
Full development of EPC projects and O&MFocus on increasing activity in the Power Generation, Mining and Oil &
Gas sectors
Full development of EPC projects and O&MFocus on increasing activity in the Power Generation, Mining and Oil &
Gas sectors
Reference in the Facilities Management industry through IngesanTwo growth models: Consolidation in Spain and Internationalization
Reference in the Facilities Management industry through IngesanTwo growth models: Consolidation in Spain and Internationalization
GrowthConsolidation
Internationalizationtowards AmericanHome Markets
� Consistently increasing revenues and gaining scale� Impacted by negative macro environment and significant fixed costs
incurred to bid for new projects� New project awarded in Mexico to construct a combined cycle plant
for a total amount of €445m
2015Revenues
YoYGrowth
2015EBITDA
YoYGrowth
€352m +50.3% (€21m) (5.6%)
2015Revenues
YoYGrowth
2015EBITDA
YoYGrowth
€199m +37.7% €10m (10.4%)
� Consistently increasing revenues and gaining scale� Pressure on margins given strong competition in the sector
Development of a joint-collaboration model resulting in synergies between
divisions
ANNUAL GENERAL MEETING 2016 30
Concessions| Strong performance across the portfolio
3. OHL’s Position
Key HighlightsKey Highlights High traffic growth across geographiesHigh traffic growth across geographies
� Solid performance mainly driven by the positive trend in traffic flows and toll rates in Mexican concessions
� Total EBITDA -1.0% mainly impacted by a decrease in EBITDA from guaranteed IRR due to the drop in the inflation rate in Mexico during 2015 (+2.13%) vs. 2014 (+4.08%) having a negative impact of €80.2m
Significant growth of cash EBITDA at OHL Mexico toll road concessions
Significant growth of cash EBITDA at OHL Mexico toll road concessions(MXN m)
YoY Growth
Km 2014 2015
Mexico
Amozoc-Perote 123 7.8% 12.1%
Concesionaria Mexiquense 155 4.1% 12.8%
Viaducto Bicentenario 32 (2.3%) 10.1%
Autopista Urbana Norte 9 9.9% 14.3%
Spain
Euroglosa M-45 8 3.2% 6.4%
Autovia de Aragón 56 1.6% 4.0%
Peru
Autopista del Norte 356 11.7% 5.4%
2015Revenues
€445m
YoY Growth
20.5%
2015EBITDA
€820m
YoYGrowth
(1.0%)
2015 CashEBITDA
€285m
YoY Growth
+33.6%
42.3%24.1%27.1%19.4%9.4%16.7%YoY
Growth
(MXN m)
ANNUAL GENERAL MEETING 2016 31
Country Project Type Projects Investment
Chile Highway 3 €1,346m
Peru Highway 4 €1,926m
Colombia Rail/Highway/Port 5 €2,631m
USA Port/Rail 2 $650m
Concessions| Strengthen our already diversified portfolio
3. OHL’s Position
Key EventsKey Events
Successful Asset Rotation1
� Sale of 24.99% of Conmex to IFM for €546m
� Funds will be used for equity commitments in awarded projects in Mexico
� Sale of 28% of Metro Ligero Oeste during 1H2016
New Concession Awards2
� Conexión La Molina-Angamos in Peru
� Awarded in January 2016
� 12km urban road, combining tunnels and ditches
� Expected investment of €460mActive Bidding3
Well-balanced and diversified portfolioWell-balanced and diversified portfolio
8 PROJECTS
1 PROJECT
1 PROJECTS
3 PROJECTS
4 PROJECTS
Consolidate current presence Chile
Mexico Growin the short term Peru
Colombia
Explore specific sectors
Brazil Enter in the medium term
USA
Canada
Focused on strategic geographies
ANNUAL GENERAL MEETING 2016 32
# of Investments Equity Invested (€m)
Spain 4 181.5
Chile 3 87.0
Peru 1 76.5
Colombia 1 27.7
Total 9 372.7
Concessions| Proven track record of value creation
3. OHL’s Position
Direct concessions ex-MexicoDirect concessions ex-Mexico
Significant value potentialSignificant value potential
Current Share Price
Brokers Target Price
Upside Potential
Stake Upside Potential
€ 12.5 € 14.4
MXN 21.9 MXN 32.9
+15.0%
+50.3%
Young toll roads portfolioYoung toll roads portfolio
Proven track record creating value through asset rotationProven track record creating value through asset rotation
€246m
€521m
Equity Invested
€372.7M
7concessions
2 concessions
Remaining years of the OHL Concesiones toll roads portfolio
Average life: 26.5 years(Years)
2 concessions
2 concessions
ANNUAL GENERAL MEETING 2016 33
OHL Developments promotes singular projects for top-quality tourism
3. OHL’s Position
Mayakobá (Riviera Maya)One of the most exclusive resorts in the
world
Canalejas (Madrid)Development of Four Season’s first hotel
in Spain
Old War Office (Londres)Project to restore and renovate the
emblematic War Office
Second phase under way: Mayakobá City
~17,000 homesRetail area
Second golf course
Considers converting seven historic buildings
Hotel and homesParking
Shopping mall
Will lead to the development of a five-star hotel and luxury apartments in
downtown London
Strong performance of the operating business with like-for-like EBITDA growth of +18.5% driven by the good performance of the hotels in Mayakobá. Increasingly higher occupancy levels, confirming the recovery of the tourism sector in Mexico
Strong performance of the operating business with like-for-like EBITDA growth of +18.5% driven by the good performance of the hotels in Mayakobá. Increasingly higher occupancy levels, confirming the recovery of the tourism sector in Mexico
2015Revenues
YoYGrowth
2015EBITDA
YoYGrowth
€125m +27.2% €8m (44.6%)
2015 Net Book Value
€450M
Like-for-likeGrowth
+18.5%
ANNUAL GENERAL MEETING 2016 34
3. OHL’s Position
Maximization of project profitability andstrengthening of risk control mechanisms
Focus of OHL Group's activity on priority markets and sectors
Industrial and Services to represent 20% of revenue
Maintaining the net recourse debt / recourse EBITDA ratio below 2.0x
Working capital turnaround
83% of total revenues in Home Markets
+50.3% and +37.3% revenue growth for Industrial and Services divisions, respectively
1.3x Recourse Leverage
Fully committed with our Strategic Plan principles …
… having a positive impact on 2015 results
√
√
√
√
√
1
2
3
4
5
Risk management committee implementation
Optimize sustainable cash flow generation and self funding for all
divisions
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1. 2015 Highlights
2. 2015 Results
3. OHL’s Position
4. Good Governance & CSR
5. Resolutions Proposal
ANNUAL GENERAL MEETING 2016
Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 36
Mejores Prácticas de Buen Gobierno realizadas en 2014
4. Good Governance & CSR
� GenderGenderGenderGender diversitydiversitydiversitydiversity inininin thethethethe compositioncompositioncompositioncomposition ofofofof thethethethe BoardBoardBoardBoard ofofofof DirectorsDirectorsDirectorsDirectors.... Following the appointment of two
women directors OHL comply in advance with the target of 30% women presence in the Board as
established by the 2020 Unified Code.
� AmendmentAmendmentAmendmentAmendment ofofofof Bylaws,Bylaws,Bylaws,Bylaws, RegulationsRegulationsRegulationsRegulations ofofofof thethethethe AGMAGMAGMAGM andandandand RegulationsRegulationsRegulationsRegulations ofofofof thethethethe BoardBoardBoardBoard to introduce the
legislative amendments established to improve corporate governance.
� CapitalCapitalCapitalCapital increaseincreaseincreaseincrease to provide the Company with a more robust and sustainable capital structure.
� TaxTaxTaxTax PolicyPolicyPolicyPolicy approvedapprovedapprovedapproved forforforfor OHLOHLOHLOHL GroupGroupGroupGroup and adherence to the Code of Good Tax Practices drawn up by
the Ministry of Economy and Finance.
Best Good Governance practices taken in 2015
ANNUAL GENERAL MEETING 2016 37
Mejores Prácticas de Buen Gobierno realizadas en 2014
4. Good Governance & CSR
CSR actions taken in 2015
� NewNewNewNew Group’sGroup’sGroup’sGroup’s CSRCSRCSRCSR PolicyPolicyPolicyPolicy in accordance with the recommendations of the new Code of Good
Governance of Listed Companies. Approved by the Board of Directors following a favorable report
from the Audit , Compliance and CSR Committee
� The launch of the Group’s 2015201520152015----2020202020202020 CSRCSRCSRCSR StrategicStrategicStrategicStrategic PlanPlanPlanPlan aligned with United Nations Sustainable
Development Goals (SDGs)
� Renewing our presencepresencepresencepresence inininin thethethethe FTSEFTSEFTSEFTSE4444GoodGoodGoodGood IbexIbexIbexIbex SustainabilitySustainabilitySustainabilitySustainability IndexIndexIndexIndex for 7 running years, recognizing
the commitment of OHL and is a reference for asset management investors interested in companies
that comply with the international ESG (Environmental, Social & Governance) criteria.
� OHLOHLOHLOHL formsformsformsforms partpartpartpart ofofofof thethethethe exclusiveexclusiveexclusiveexclusive CDPCDPCDPCDP ClimateClimateClimateClimate AAAA ----ListListListList group,group,group,group, comprising the 5% top firms across the
world committed with the fight against climate change
� Among the 1111,,,,000000000000 EuropeanEuropeanEuropeanEuropean companiescompaniescompaniescompanies withwithwithwith majormajormajormajor spendingspendingspendingspending inininin R&DR&DR&DR&D according to the 2015 EU
Industrial R&D Investment Scoreboard. According to this report, OHL is ranked 12th among the
European construction companies and is the 17th Spanish company in all industries
38
1. 2015 Highlights
2. 2015 Results
3. OHL’s Position
4. Good Governance & CSR
5. Resolutions Proposal
ANNUAL GENERAL MEETING 2016
Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 39
5. Resolutions Proposal
FirstFirstFirstFirstReview and approval the individual annual accounts and Management Report for financial year 2015 of
Obrascón Huarte Lain S.A., and of its Consolidated Group
SecondSecondSecondSecondApproval the proposal to implement the results of the Company for the year 2015 and distribution of the
dividend
Third Approval the performance of the Board of Directors of the Company during 2015
Fourth Re-election of the Auditors of the Company and of its Consolidated Group
Fifth Re-election of Director
Sixth Appointment of Director
Seventh Authorization for the Company to proceed to acquire treasury stock, directly or indirectly through
subsidiaries or affiliates, pursuant to article 146 of the Corporate Enterprises Law
Eighth Report on the use made by the Board of Directors of the power delegated to it by the Shareholders’
Meeting to issue simple bonds or debentures
Ninth Annual Report on the remuneration received by the members of the Board of Directors for year 2015
Tenth Delegation of authority
Eleventh Reading and approval the Minutes of the Annual General Meeting of Shareholders
Madrid, 2 de junio 2016
JUNTA
GENERAL
DE
ACCIONISTAS