RESULTS REPORT H1 2020
INDEX
2 |
RESULTS REPORT H1 2020
1 Executive Summary
COVID - 19 IMPACT
The current situation caused by the global coronavirus outbreak has had the following impacts on ACS Group during the first half of the year:
- Abertis has been substantially affected by the lockdown and mobility restrictions introduced in most of the countries where it operates, causing drastic falls in the average daily traffic since mid-March and considerably affecting the results. Thus, Abertis' Net Profit contribution to the Group in H1 2020 has been reduced. As restrictions have been lifted, traffic has gradually recovered, mainly in Spain and France.
- Clece, during the state of alert, halted or significantly reduced the cleaning and maintenance activities of those social infrastructures that ceased their activity, such as schools or leisure centres, non-essential facilities and air transport. However, activity in hospitals and public facilities were reinforced.
- Construction activity has been considered as essential in most of the countries, therefore COVID-19 impact has been more limited. There was no significant impairment on operating margins.
- Likewise, Industrial Services activities had a mild impact, meaning only a slowdown of the activity in some regions. Operating margins were not affected.
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RESULTS REPORT H1 2020
1.1 Main figures
Grupo ACS | Key operating & financial figures | ||||
Euro Million | 6M19 | 6M20 | Var. | ||
Turnover | 18,817 | 18,337 | -2.6% | ||
Backlog | 76,502 | 75,812 | -0.9% | ||
Months | 24 | 23 | |||
EBITDA | (1) | 1,621 | 1,345 | -17.0% | |
Margin | 8.6% | 7.3% | |||
EBIT | (1) | 1,098 | 859 | -21.8% | |
Margin | 5.8% | 4.7% | |||
Attributable Net Profit | 523 | 361 | -30.9% | ||
EPS | 1.70 € | 1.21 € | -28.9% | ||
Net Investments | 1,008 | 672 | -33.3% | ||
Investments | 1,125 | 957 | |||
Disposals | 118 | 285 | |||
Total Net (Debt)/Cash | (725) | (2,699) | n.a. | ||
Businesses' Net (Debt)/Cash | (610) | (2,573) | |||
Project Financing | (115) | (126) |
Ex Abertis | ||||
6M19 | 6M20 | Var. | ||
18,817 | 18,337 | -2.6% | ||
76,502 | 75,812 | -0.9% | ||
24 | 23 | |||
1,492 | 1,391 | -6.8% | ||
7.9% | 7.6% |
969 904 -6.7%
5.1% 4.9%
419 | 398 | -5.1% |
Data presented according to ACS Group management criteria.
- It includes "Results from Equity Method of operating activities": the result corresponds to associates (including Abertis' contribution to the Group) and Joint Ventures which belong to the ordinary activity.
- Sales in the period accounted for € 18,337 million, decreasing 2.6%. The spread of the pandemic caused a general slowdown of the activity during Q2 2020, with a sales impact of -8%.
- Backlog reached 75,812 showing a decrease of 0.9% in the last twelve months.
-
The Group's EBITDA was affected by Abertis' negative contribution. Not considering this effect,
EBITDA accounted for € 1,391 million, decreasing by 6.8%, during the period. EBIT was also affected by the lesser contribution coming from Abertis. Not considering this impact, EBIT stood at € 904 million, decreasing by 6.7% in comparable terms.
Grupo ACS | Main operating figures detail | ||
Euro Million | 6M19 | 6M20 | Var. |
Backlog | 76,502 | 75,812 | -0.9% |
Direct | 71,952 | 69,308 | -3.7% |
Proportional(1) | 4,550 | 6,504 | +42.9% |
Work Done | 19,409 | 18,867 | -2.8% |
Direct | 18,817 | 18,337 | -2.6% |
Proportional(1) | 593 | 530 | -10.6% |
EBITDA | 1,621 | 1,345 | -17.0% |
Direct | 1,447 | 1,338 | -7.5% |
Operating equity method results(2) | 174 | 7 | -96.0% |
EBIT | 1,098 | 859 | -21.8% |
Direct | 924 | 852 | -7.8% |
Operating equity method results(2) | 174 | 7 | -96.0% |
(1): Refers to the proportional stake of the operating Joint Ventures and projects not fully consolidated in the Group
(2): Includes Abertis' contribution
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RESULTS REPORT H1 2020
- The Group's H1 2020 Net Profit reached € 361 million. Not considering Abertis, Net Profit reached € 398 million, 5.1% less than H1 2019.
Grupo ACS | Net Profit breakdown | ||
Euro Million | 6M19 | 6M20 | Var. |
Infrastructures | 294 | 161 | -45.4% |
Construction | 184 | 177 | -3.7% |
Concessions (1) | 110 | (16) | n.a. |
Industrial Services | 221 | 206 | -7.0% |
Services | 19 | 1 | -96.8% |
Corporation | (12) | (6) | -48.0% |
TOTAL Net Profit | 523 | 361 | -30.9% |
Abertis contribution | 104 | (37) | n.a. |
Net Profit ex Abertis | 419 | 398 | -5.1% |
- It includes Abertis' net contribution
-
The Group maintained a € 2,699 million net debt position as of June 30th 2020, 1.0x annualized
EBITDA. - Net debt variation during this first half is due to the seasonality of the period which implies a cash outflow due to changes in working capital, a lesser use of factoring, the exit from BICC and investments during the period.
H1 net debt evolution (€ mn)
1,409
(54) | (1,600) | ||||
(434) | |||||
(453) | |||||
(809) | |||||
(759) | (2,699) | ||||
Net Debt | Gross FFO WC var. (1) CAPEX + op. | Dividends + | BICC | Net project | Net Debt |
Dec-19 | Leases | Treasury | payments | investments | Jun-20 |
stock (ACS) | and other (2) |
- Impact from factoring balance reduction in € 215 million during the first half.
- It includes Hochtief share acquistion (€ 105 million) and Cimic's (€ 189 million)
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RESULTS REPORT H1 2020
1.2 Disclosures to CNMV
- Dividends
- On December 12th 2019, in use of the delegation granted by agreement of the Company's General Shareholders Meeting held on May 10th 2019 the Board of Directors signed off the execution of the second scrip dividend system. The dividend was paid in March 2020 worth € 0.449 per share. 66% of ACS capital opted for remuneration in shares.
- Likewise, the General Shareholders Meeting held on May 8th 2020, signed off the scrip dividend for 2020 worth approximately € 1.99 per share to be executed in two instalments: the first one in July 2020 worth approximately € 1.54 per share and the second one in February 2021 worth € 0.45 per share. 65% of ACS capital opted for remuneration in shares paid by July 7th.
- Due to market conditions, the amount resulting from July's complementary scrip dividend resulted in € 1.38 per share, less than the agreed amount in the AGM; therefore, the Board of Directors on its meeting held on June 19th 2020 approved an additional dividend worth € 0.16 per share, which was paid by July 6th 2020.
- Corporate Governance
- On March 22nd 2020, ACS reported the decease of the Deputy Chairman and Board member Mr. José María Loizaga Viguiri.
- On May 8th 2020, ACS General Shareholders Meeting approved the renewal of the Proprietary Directors Mr. Mariano Hernández Herreros and Mr. Javier Echenique Landiríbar.
- On May 14th 2020, ACS, Actividades de Construcción y Servicios S.A. Board of Directors agreed to choose Counsellor Mr. Pedro López Jiménez, as member of the Audit Commission.
- Acquisitions and transfer of shares
-
On January 3rd 2020, ACS Group announced and initial agreement, through its subsidiary ACS Servicios, Comunicaciones y Energía, S.L., to partially sell PV projects in Spain.
On January 22nd 2020, ACS Group reached an agreement with Galp Energy Group for the sale of its stake in these PV projects in Spain, together with additional ones to be developed and put into operation from 2020 to 2023, with an overall installed capacity of 2,930 MW. Total EV aimed to be reached is about € 2,200 million, generating approximately € 330 million Net Profit for the Group, of which € 250 million were accounted for in 2019.
The abovementioned agreement was modified last July with the creation of a Joint Venture that groups together the projects which are already operative and a first set of those which are under development, from which Galp acquires 75.01% worth € 300-500 million, and ACS maintains its 24.99% stake with a joint control government structure. The remaining projects will be gradually incorporated to this Joint Venture. The transaction is conditioned to the common authorizations for this type of transactions, including the approval of the European Commission competence authorities. - On April 24th 2020, ACS Group, through its subsidiary IRIDIUM S.A., executed the sale contract, together with Hermes Infrastructure fund, of 74% of its capital in a company which had all the stake that the Group had in six shadow toll concessions in Spain. The transaction was carried out with an
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RESULTS REPORT H1 2020
EV (100%) worth € 950 million and with capital gains worth € 40 million for the stake sold (74%). These capital gains were partially accounted in 2019.
- On July 29th 2020, CIMIC Group announced the signing of an exclusive agreement with Elliot regarding the possible 50% investment in Thiess capital which would allow a joint control by CIMIC and Elliot. The entry of an equity partner in Thiess would allow to take advantage of growing opportunities in the mining sector and maintain CIMIC's strong balance sheet.
- Loans, credits, guarantees, and other financial instruments
- Following a binding agreement signed on March 18th 2020, on April 6th 2020 ACS formalized a derivative contract on its own shares with a financial institution for a maximum of 12,000,000 shares with a Call Option in favour of ACS at a strike price of € 14 per share and a Put Option in favour of the financial institution at a strike price of € 10 per share to be adjusted according to future dividends and to the final price execution. Maturing in November 2nd 2020 to March 31st 2021, at the rate of 115,385 shares per day.
- On April 13th 2020, ACS signed a binding derivative agreement on its own shares (Reverse collar) with a financial institution for an initial total amount of 8,000,000 shares divided into two tranches: the first one of 4,000,000 shares with a Call Option in favour of ACS at a strike price of € 17.5 per share and a Put Option in favour of the financial institution at a strike price of € 14.5 per share; the second one of 4,000,000 shares (extensible in option of the financial institution in other 4,000,000 shares), with a Call Option in favour of ACS at a strike price of € 19.5 per share and a Put Option in favour of the financial institution at a strike price of €16.5 per share. It will be effective from April 14th 2020 until May 31st 2021. Options are settled in cash at the exclusive option of ACS.
- On June 8th 2020, ACS went to the Euromarkets to issue a 5-year senior bond worth € 750 million maturing on June 17th 2025 and with an annual coupon of 1.375%.
- Others
-
On February 24th 2020, ACS announced an agreement to launch a buyback program of its own shares in accordance with the authorization granted by 2019 General Shareholders Meeting. The maximum number of shares to be acquired under the Buyback Program is 10,000,000 ACS shares, which means approximately 3.18% of its share capital as of the date of this communication. On its side, the maximum investment will be of € 370,000,000. The program will remain in force until
September 30th 2020. - On May 25th 2020, ACS agreed to modify the share buyback program (the "Buyback Program" notified to the CNMV on February 24th 2020, extending the maximum purchase shares' number to 12,000,000 as well as the maximum investment up to € 660 million and extending the deadline to
March 31st 2022.
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RESULTS REPORT H1 2020
2 Consolidated Financial Statements
2.1 Income Statement
Grupo ACS | Consolidated Income Statement | ||
Euro Million | 6M19 | 6M20 | Var. |
Net Sales | 18,817 100.0 % | 18,337 100.0 % | -2.6% |
Other revenues | 211 | 1.1 % |
Total Income | 19,028 | 101.1 % |
Operating expenses | (13,461) | (71.5 %) |
Personnel expenses | (4,120) | (21.9 %) |
Operating Results from Equity Method* | 174 | 0.9 % |
262 1.4 % +24.1%
18,599 101.4 % -2.3%
(13,317) (72.6 %) -1.1%
(3,944) (21.5 %) -4.3%
7 0.0 % -96.0%
Operating Cash Flow (EBITDA) | 1,621 | 8.6 % |
Fixed assets depreciation | (495) | (2.6 %) |
Current assets provisions | (28) | (0.2 %) |
Ordinary Operating Profit (EBIT) | 1,098 | 5.8 % |
Impairment & gains on fixed assets | (0) | (0.0 %) |
Other operating results | (32) | (0.2 %) |
Operating Profit | 1,067 | 5.7 % |
Financial income | 110 | 0.6 % |
Financial expenses | (248) | (1.3 %) |
Ordinary Financial Result | (138) | (0.7 %) |
Foreign exchange results | 22 | 0.1 % |
Changes in fair value for financial instruments | 18 | 0.1 % |
Impairment & gains on financial instruments | 2 | 0.0 % |
Net Financial Result | (95) | (0.5 %) |
Non Operating Results from Equity Method* | 2 | 0.0 % |
PBT of continued operations | 973 | 5.2 % |
Corporate income tax | (242) | (1.3 %) |
Net profit of continued operations | 732 | 3.9 % |
Profit after taxes of the discontinued operations | 0 | 0.0 % |
Consolidated Result | 732 | 3.9 % |
Minority interest | (209) | (1.1 %) |
1,345 7.3 % -17.0%
- (2.6 %) -5.1%
- (0.1 %) -39.5%
859 4.7 % -21.8%
31 0.2 % n.a
- (0.3 %) +46.5%
843 4.6 % -20.9%
87 0.5 % -21.1%
- (1.2 %) -9.8%
- (0.7 %) -0.8%
- (0.2 %) n.a
- (0.4 %) n.a
116 0.6 % n.a
(130) (0.7 %) +36.7%
4 0.0 % +87.6%
717 3.9 % -26.3%
- (1.1 %) -13.1%
507 2.8 % -30.7%
0 0.0 % n.a
507 2.8 % -30.7%
(146) (0.8 %) -30.1%
Net Profit Attributable to the Parent Company | 523 2.8 % | 361 2.0 % | -30.9% |
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RESULTS REPORT H1 2020
2.1.1 Sales and Backlog
- Sales during the period rose up to € 18,337 million, decreasing by 2.6%. The spread of the pandemic together with the applied restrictions in most of the countries worldwide have slowed down the global activity.
- Sales breakdown by geographical areas showed the diversification of the Group's revenue sources, where North America represented 51% of total sales, Asia Pacific 21%, Europe 19%, from which Spain represented 13%, and the remaining regions 6%.
Grupo ACS | |
Euro Million | 6M19 |
Europe | 4,046 |
North America | 8,820 |
South America | 1,210 |
Asia Pacific | 4,601 |
Africa | 140 |
TOTAL | 18,817 |
Sales per Geographical Areas | |||
% | 6M20 | % | Var. |
21.5 % | 3,461 | 18.9% | -14.4% |
46.9 % | 9,369 | 51.1% | +6.2% |
6.4 % | 1,387 | 7.6% | +14.6% |
24.4 % | 3,867 | 21.1% | -15.9% |
0.7 % | 253 | 1.4% | +80.0% |
18,337 | -2.6% |
Grupo ACS | ||
Euro Million | 6M19 | % |
USA | 7,700 | 40.9 % |
Australia | 3,541 | 18.8 % |
Spain | 2,998 | 15.9 % |
Canada | 683 | 3.6 % |
Germany | 338 | 1.8 % |
RoW | 3,556 | 18.9 % |
TOTAL | 18,817 |
Sales per Countries | ||
6M20 | % | Var. |
8,176 | 44.6% | +6.2% |
2,910 | 15.9% | -17.8% |
2,410 | 13.1% | -19.6% |
780 | 4.3% | +14.1% |
418 | 2.3% | +23.6% |
3,643 | 19.9% | +2.4% |
18,337 | -2.6% |
- North America maintained a modest growth thanks to the USA and Canadian markets' resistance, which grew by 6.2% and 14.1%, respectively. Likewise, the activity in South America increased by 14.6%, backed by the positive evolution of energy projects, mainly in Brazil.
- Asia and Europe were more affected by the restrictions issued across almost all countries. In particular, activity in Europe decreased by 14.4%, mainly due to Spain, while Germany grew by 23.6% and United Kingdom remained practically stable. On its side, sales' performance in Australia were particularly affected by the exchange rate variation.
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RESULTS REPORT H1 2020
Grupo ACS | |
Euro Million | Jun-19 |
Europe | 13,909 |
North America | 33,447 |
South America | 5,149 |
Asia Pacific | 22,435 |
Africa | 1,562 |
TOTAL | 76,502 |
Backlog per Geographical Areas | |||
% | Jun-20 | % | Var. |
18.2 % | 15,083 | 19.9% | +8.4% |
43.7 % | 32,590 | 43.0% | -2.6% |
6.7 % | 3,582 | 4.7% | -30.4% |
29.3 % | 23,013 | 30.4% | +2.6% |
2.0 % | 1,545 | 2.0% | -1.1% |
75,812 | -0.9% |
- The Group's total Backlog at half-end stood at € 75,812 million, decreasing by 0.9%.
Grupo ACS | |
Euro Million | Jun-19 |
USA | 27,976 |
Australia | 17,689 |
Spain | 7,401 |
Canada | 4,048 |
Germany | 2,664 |
RoW | 16,724 |
TOTAL | 76,502 |
Backlog by countries | |||
% | Jun-20 | % | Var. |
36.6 % | 28,018 | 37.0% | +0.2% |
23.1 % | 20,114 | 26.5% | +13.7% |
9.7 % | 8,489 | 11.2% | +14.7% |
5.3 % | 3,545 | 4.7% | -12.4% |
3.5 % | 2,987 | 3.9% | +12.1% |
21.9 % | 12,660 | 16.7% | -24.3% |
75,812 | -0.9% |
- Australia's Backlog grew by 13.7%, mainly due to mining contracts' extension and perimeter changes related to the incorporation of new businesses.
- On its side, US' Backlog rose to € 28,018 million, from which approximately two thirds corresponded to Turner. After the pandemic impact on the commercial activity during the second quarter, backlog remained almost stable in relation to H1 2019.
- Spanish Backlog increased by 14.7%. The remaining countries in Europe grew by 1.3%, mainly supported by the German Backlog.
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RESULTS REPORT H1 2020
2.1.2 Operating Results
Grupo ACS
Operating Results | Ex Abertis |
Euro Million EBITDA EBITDA Margin Depreciation Infrastructures Industrial Services Services Corporation Current assets provisions EBIT EBIT Margin
6M19 | 6M20 | Var. |
1,621 | 1,345 | -17.0% |
8.6% | 7.3% | |
(495) | (469) | -5.1% |
- (403)
- (46)
- (20)
- (0)
(28) | (17) | -39.5% |
1,098 | 859 | -21.8% |
5.8% | 4.7% |
6M20 | Var. |
1,391 | -6.8% |
7.6% |
904 -6.7%
4.9%
- The Group's EBITDA was affected by Abertis' negative contribution. Not considering this effect,
EBITDA accounted for € 1,391 million, showing a decrease of 6.8%. Margin over sales, ex Abertis, stood at 7.6%, 30 b.p. less compared to H1 2019, mainly due to HOCHTIEF's business mix variation, with more weight given to Turner's activity with a lower risk profile. - Likewise, EBIT was also affected by the lower contribution from Abertis. Not considering this impact, the balance at half-end stood at € 904 million, decreasing by 6.7% in comparable terms. Ex Abertis, margin over sales was 4.9%, 20 b.p. less in comparable terms, also affected by the business mix.
2.1.3 Financial Results
Grupo ACS | Financial Results | ||
Euro Million | 6M19 | 6M20 | Var. |
Financial income | 110 | 87 | -21.1% |
Financial expenses | (248) | (223) | -9.8% |
Ordinary Financial Result | (138) | (137) | -0.8% |
Infrastructures | (96) | (105) | +9.4% |
Industrial Services | (38) | (31) | -18.1% |
Services | (3) | (3) | +4.6% |
Corporation | 0 | 4 | n.a |
- Ordinary financial result remained stable. Financial expenses decreased by 9.8% as a result of less average cost of credit facilities.
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RESULTS REPORT H1 2020
Grupo ACS | Financial Results | ||
Euro Million | 6M19 | 6M20 | Var. |
Ordinary Financial Result | (138) | (137) | -0.8% |
Foreign exchange results | 22 | (31) | |
Changes in fair value for financial instruments | 18 | (78) | |
Impairment & gains on financial instruments | 2 | 116 | |
Net Financial Result | (95) | (130) | +36.7% |
- Differences in exchange and the effects derived from reasonable value variation from financial instruments, as well as their impairment tests and results had an impact of € 7 million, whilst last year the positive impact was of € 42 million.
2.1.4 Net Profit Attributable
Grupo ACS | Net Profit breakdown | |||
Euro Million | 6M19 | 6M20 | Var. | |
Infrastructures | 294 | 161 | -45.4% | |
Construction | 184 | 177 | -3.7% | |
Concessions | (1) | 110 | (16) | n.a. |
Industrial Services | 221 | 206 | -7.0% | |
Services | 19 | 1 | -96.8% | |
Corporation | (12) | (6) | -48.0% | |
TOTAL Net Profit | 523 | 361 | -30.9% | |
Abertis contribution | 104 | (37) | n.a. | |
Net Profit ex Abertis | 419 | 398 | -5.1% |
- It includes Abertis' net contribution.
- ACS Group H1 2020 Net Profit reached € 361 million. Not considering Abertis, Net Profit at June- end reached € 398 million, 5.1% less than H1 2019.
- The effective corporate tax rate stood at 29.7%, 60 b.p. less in the same comparable term.
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RESULTS REPORT H1 2020
2.2 Consolidated Balance Sheet
Grupo ACS | Consolidated balance sheet | ||||
Euro Million | Dec-19 | Jun-20 | Var. | ||
FIXED and NON-CURRENT ASSETS | 14,349 | 37.2 % | 13,900 | 35.5 % | -3.1% |
Intangible Fixed Assets | 4,169 | 4,161 | -0.2% | ||
Tangible Fixed Assets | 2,739 | 2,653 | -3.1% | ||
Equity Method Investments | 4,411 | 4,035 | -8.5% | ||
Non current financial assets | 915 | 957 | +4.6% | ||
Financial instrument debtors | 7 | 19 | n.a | ||
Deferred Taxes Assets | 2,106 | 2,075 | -1.5% | ||
CURRENT ASSETS | 24,243 | 62.8 % | 25,308 | 64.5 % | +4.4% |
Non Current Assets Held for Sale | 2,111 | 2,037 | -3.5% | ||
Inventories | 911 | 896 | -1.6% | ||
Accounts receivables | 11,552 | 11,754 | +1.7% | ||
Other current financial assets | 1,339 | 1,717 | +28.2% | ||
Financial instrument debtors | 11 | 154 | n.a | ||
Other Short Term Assets | 229 | 248 | +8.5% | ||
Cash and banks | 8,089 | 8,502 | +5.1% | ||
TOTAL ASSETS | 38,592 | 100.0 % | 39,208 | 100.0 % | +1.6% |
NET WORTH | 5,496 | 14.2% | 4,306 | 11.0 % | -21.6% |
Equity | 4,778 | 4,099 | -14.2% | ||
Value change adjustments | (361) | (542) | +50.1% | ||
Minority Interests | 1,080 | 750 | -30.6% | ||
NON-CURRENT LIABILITIES | 9,041 | 23.4% | 12,331 | 31.5 % | +36.4% |
Subsidies | 3 | 3 | -5.1% | ||
Long Term Provisions | 1,362 | 1,286 | -5.6% | ||
Long Term Financial Liabilities | 6,434 | 9,852 | +53.1% | ||
Bank loans and debt obligations | 6,151 | 9,619 | +56.4% | ||
Project Finance | 122 | 107 | -12.4% | ||
Other financial liabilities | 161 | 126 | -21.7% | ||
LT Operating Lease liabilities | 687 | 659 | -4.0% | ||
Financial Instruments Creditors | 72 | 68 | -6.2% | ||
Long term deferred tax liabilities | 383 | 343 | -10.5% | ||
Other Long Term Accrued Liabilities | 100 | 121 | +21.0% | ||
CURRENT LIABILITIES | 24,055 | 62.3% | 22,571 | 57.6 % | -6.2% |
Liabilities from Assets Held for Sale | 1,187 | 1,211 | +2.1% | ||
Short Term Provisions | 1,235 | 1,110 | -10.1% | ||
Short Term Financial Liabilities | 3,048 | 3,067 | +0.6% | ||
Bank loans and debt obligations | 2,868 | 2,978 | +3.8% | ||
Project Finance | 19 | 18 | -1.0% | ||
Other financial liabilities | 162 | 71 | -56.4% | ||
ST Operating Lease liabilities | 321 | 315 | -1.9% | ||
Financial Instruments Creditors | 28 | 218 | n.a | ||
Trade accounts payables | 16,756 | 15,350 | -8.4% | ||
Other Short Term liabilities | 551 | 1,157 | n.a | ||
Financial Liabilities related to BICC | 927 | 141 | -84.8% | ||
TOTAL EQUITY & LIABILITIES | 38,592 | 100.0% | 39,208 | 100.0 % | +1.6% |
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RESULTS REPORT H1 2020
2.2.1 Non-Current Assets
-
Intangible assets, which amounted to € 4,161 million, included goodwill from past strategic transactions amounting to € 3,111 million, from which € 743 million came from ACS and Dragados
Group merger in 2003, and € 1,389 million came from HOCHTIEF's acquisition in 2011. The rest corresponded to the integration of various companies in the Group, mainly in HOCHTIEF. - Investment balance held by the Equity Method included the stake in Abertis held by ACS and HOCHTIEF, holdings from HOCHTIEF's associated companies, Iridium concessions and certain energy assets from Industrial Services. Concretely, ACS stake (30%) accounted for € 1,829 million, while HOCHTIEF's (20% minus one share) amounted to € 1,230 million. Therefore, total impact on ACS Group balance sheet stood at € 3,059 million.
2.2.2 Working Capital
Grupo ACS | Working Capital evolution | ||||
Euro Million | Jun-19 | Sep-19 | Dec-19 | Mar-20 | Jun-20 |
Infrastructures | (4,190) | (3,575) | (5,862) | (3,613) | (3,926) |
Industrial Services | (1,429) | (1,346) | (1,350) | (1,199) | (1,274) |
Services | (120) | (46) | (31) | (2) | (35) |
Corporation | 178 | 186 | 128 | (36) | (5) |
TOTAL | (5,560) | (4,782) | (7,116) | (4,849) | (5,241) |
- During the last 12 months, net working capital decreased its debit balance by € 319 million due to the lesser use of factoring during the period, which decreased in € 333 million in the last twelve months. The commercial discount and securitization outstanding balance (factoring) amounted to € 1,989 million as of June 30th 2020.
- Infrastructures' debit balance decreased compared to the one reported in 2019 year-end after CIMIC's payments in 2020 first quarter related to BICC.
2.2.3 Net Worth
- ACS Group Net worth accounted for € 4,306 million at period-end.
- At half-end Shareholder's Equity included the accrual of July's scrip dividend, but not the capital increase associated to it, which amounted to € 283 million and which was made in July. Not considering this effect, Shareholder's Equity rose up to € 4,382 million. Thus, the change in equity compared to December 2019 is mainly explained by the increase of the treasury balance during the period of around € 300 million.
- The impact on adjustments from value changes is mainly due to the Australian dollar devaluation and other Latin-American currencies during the period, as well as impacts from coverages.
- Purchase of treasury shares in HOCHTIEF and CIMIC as well as the accrual of HOCHTIEF's dividends explained the reduction in minority interest's balance.
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RESULTS REPORT H1 2020
Grupo ACS | Net Worth | ||
Euro Million | Dec-19 | Jun-20 | Var. |
Shareholders' Equity | 4,778 | 4,099 | -14.2% |
Adjustment s from Value Changes | (361) | (542) | +50.1% |
Minority Interests | 1,080 | 750 | -30.6% |
Net Worth | 5,496 | 4,306 | -21.6% |
NOTE: On July 20th a capital increase was executed associated to the flexible dividend worth € 283 million
eld
2.2.4 Net Debt
- The Group held a Net Debt position of € 2,699 million.
Net Debt (€ mn) | Infrastructures | Industrial | Services | Corporation | Adjust. | Grupo ACS |
30 June 2020 | Services | |||||
LT loans from credit entities | 4,433 | 75 | 179 | 1,788 | 0 | 6,475 |
ST loans from credit entities | 1,677 | 311 | 70 | 1 | (0) | 2,059 |
Debt with Credit Entities | 6,110 | 386 | 249 | 1,789 | (0) | 8,534 |
Bonds | 1,720 | 752 | 0 | 1,590 | 0 | 4,062 |
Non Recourse Financing | 80 | 46 | 0 | 0 | 0 | 126 |
Other financial liabilities* | 128 | 26 | 0 | 0 | 0 | 155 |
Total External Gross Debt | 8,039 | 1,210 | 249 | 3,379 | (0) | 12,876 |
Net debt with Group's companies & Affiliates | 18 | 27 | 0 | 0 | (3) | 42 |
Total Gross Financial Debt | 8,057 | 1,237 | 249 | 3,379 | (4) | 12,918 |
ST* & other financial investments | 954 | 464 | 2 | 301 | (3) | 1,717 |
Cash & Equivalents | 7,038 | 1,345 | 74 | 45 | 0 | 8,502 |
Total cash and equivalents | 7,992 | 1,809 | 76 | 346 | (3) | 10,219 |
(NET FINANCIAL DEBT) / NET CASH POSITION | (65) | 572 | (174) | (3,033) | 0 | (2,699) |
NET FINANCIAL DEBT previous year | 1,630 | 614 | (63) | (2,905) | (725) |
- The half-term variation was due to the period's seasonality which implies working capital cash outflow, increased by a lower use of factoring, the payment of obligations related to the exit from BICC and investments made during this period.
15
RESULTS REPORT H1 2020
2.3 Net Cash Flows
Grupo ACS | Net Cash Flow | |||||
Euro Million | 6M19 | 6M20 | ||||
TOTAL | HOT | ACS exHOT | TOTAL | HOT | ACS exHOT | |
Funds from Operating activities | 1,179 | 721 | 458 | 1,193 | 746 | 446 |
Dividends from Abertis | 432 | 173 | 259 | 216 | 86 | 130 |
Cash Flow from Operating Activities before | 1,611 | 894 | 717 | 1,409 | 833 | 576 |
Working Capital | ||||||
Operating working capital variation | (1,189) | (517) | (672) | (1,600) | (967) | (633) |
Net CAPEX | (279) | (234) | (44) | (258) | (188) | (70) |
Net Operating Cash Flow from continuing | 143 | 142 | 1 | (449) | (322) | (127) |
activities | ||||||
Financial Investments/Disposals | (645) | (117) | (527) | (414) | (353) | (62) |
Operating Leases (IFRS16) | (180) | (139) | (41) | (176) | (142) | (34) |
Payments to BICC | 0 | 0 | n.a | (809) | (809) | n.a |
Other Financial Sources | 3 | 1 | 2 | (177) | (105) | (72) |
Free Cash Flow | (678) | (113) | (565) | (2,025) | (1,730) | (295) |
Dividends paid | (44) | (5) | (39) | (72) | (21) | (51) |
Treasury Stock | (256) | 0 | (256) | (381) | 0 | (381) |
Total Cash Flow Generated / (Consumed) | (979) | (118) | (860) | (2,478) | (1,751) | (727) |
Perimeter change (Increase)/decrease | 201 | (147) | 348 | (152) | (133) | (18) |
Exchange rate (Increase)/decrease | 50 | 10 | 40 | (16) | (9) | (7) |
Total Net Debt variation in the Balance Sheet | (728) | (255) | (473) | (2,646) | (1,894) | (752) |
2.3.1 Cash Flow from Operating Activities
- Cash flow from operating activities before working capital variations amounted to € 1,409 million, stable in comparable terms when excluding Abertis' dividend, which was temporally halved due to COVID-19 impact on the business.
- H1 2020 operating working capital variation resulted in a € 1,600 million cash outflow due to the seasonality of the period in addition to the lesser use of factoring and a temporary working capital deterioration derived from COVID-19.
- On its side, net operating investment reached € 258 million, € 21 million less than last year.
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RESULTS REPORT H1 2020
2.3.2 Investments
Grupo ACS | Investments breakdown | ||||||
Operating | Operating | NET | Project / | Financial | Net Project / | Total Net | |
Euro Million | Operating | Financial | Financial | ||||
Investments | divestments | Divestments | Investments | ||||
CAPEX | Investments | invesments | |||||
Infrastructures | 232 | (25) | 207 | 394 | (230) | 164 | 371 |
Dragados | 33 | (14) | 19 | (0) | (0) | (0) | 19 |
Hochtief | 199 | (11) | 188 | 374 | (22) | 353 | 541 |
Iridium | 0 | 0 | 0 | 20 | (208) | (188) | (188) |
Industrial Services | 47 | (4) | 43 | 272 | (23) | 250 | 293 |
Services | 11 | (4) | 8 | (0) | (0) | (0) | 7 |
Corporation | 0 | 0 | 0 | (0) | (0) | (0) | 0 |
TOTAL | 291 | (32) | 258 | 666 | (253) | 414 | 672 |
- ACS Group H1 2020 total net investment amounted to € 672 million.
-
Net CAPEX amounted to € 258 million and mainly corresponded to machinery acquisition for the
Group's mining, civil work, and industrial facilities projects. - Financial and Project net investment reached € 414 million and are detailed as follows:
o Infrastructure's area invested around € 400 million, from which nearly € 190 million were devoted to the purchase of CIMIC shares. Around € 160 million corresponded to investment in PPP projects and JV in America.
On its side, divestments worth over € 230 million included the sale of shadow toll concessions in Spain.
- Industrial Services area devoted € 270 million mainly to the development of energy assets.
2.3.3 Other Cash Flows
- Dividends paid in cash by the Group during the first six months of the year amounted to € 72 million. Likewise, during the term ACS allocated € 381 million to share's buyback, which were mostly intended for scrip dividend purposes.
- CIMIC payments to BICC rose to € 809 million during the period.
- Furthermore, "other financial resources item" worth € 177 million corresponded to HOCHTIEF's treasury shares worth € 105 million and to premiums of derivatives over treasury shares in ACS Corporation.
17
RESULTS REPORT H1 2020
3 Evolution per Areas of Activity
3.1 Infrastructures
Infrastructures | Key figures | ||
Euro Million | 6M19 | 6M20 | Var. |
Turnover | 14,235 | 14,049 | -1.3% |
EBITDA | 1,193 | 970 | -18.7% |
Margin | 8.4% | 6.9% | |
EBIT | 746 | 559 | -25.1% |
Margin | 5.2% | 4.0% | |
Net Profit | 294 | 161 | -45.4% |
Margin | 2.1% | 1.1% | |
Backlog | 63,981 | 63,299 | -1.1% |
Months | 25 | 24 |
NOTE: Infrastructures includes Construction and Concessions activities.
- Sales in Infrastructure reached € 14,049 million, representing a 1.3% decrease. COVID-19 impact slowed down the construction activity, mainly during the second quarter. North America grew by 7.8% thanks to the good performance during the first quarter. Meanwhile, Asia Pacific was down by 17.2% because of the pandemic slowdown and the exchange rate impact. The remaining regions were also affected by restrictions applied by different countries due to the worsening of the pandemic during the second quarter.
- Operating results were impacted by Abertis; its contribution to the Group was of negative € 45 million. Excluding Abertis, EBITDA accounted for € 1,016 million and EBIT reached € 605 million, decreasing by 4.5% and 1.9% respectively.
- Net Profit, not considering Abertis' impact contribution, reached € 197 million, growing by 3.7%.
Infrastructures | Sales per geographical areas | ||||
Euro Million | 6M19 | % weight | 6M20 | % weight | Var. |
Spain | 597 | 4.2% | 553 | 3.9% | -7.3% |
Rest of Europe | 785 | 5.5% | 776 | 5.5% | -1.1% |
North America | 8,263 | 58.0% | 8,911 | 63.4% | +7.8% |
South America | 170 | 1.2% | 134 | 1.0% | -21.4% |
Asia Pacific | 4,403 | 30.9% | 3,645 | 25.9% | -17.2% |
Africa | 17 | 0% | 30 | 0.2% | n.a. |
TOTAL | 14,235 | 100% | 14,049 | 100% | -1.3% |
- Backlog at the end of the period stood at € 63,299 million, equivalent to two years of production. Backlog remained almost stable in the US market, while in Asia Pacific backlog grew by 3.8% thanks to mining contract extension and the incorporation of new businesses due to the change in the perimeter in service's activities.
18
RESULTS REPORT H1 2020
Infrastructures | Backlog per geographical areas | ||||
Euro Million | Jun-19 | % weight | Jun-20 | % weight | Var. |
Spain | 2,592 | 4.1% | 2,520 | 4.0% | -2.8% |
Rest of Europe | 5,553 | 8.7% | 5,683 | 9.0% | +2.4% |
North America | 31,885 | 49.8% | 31,424 | 49.6% | -1.4% |
South America | 1,390 | 2.2% | 466 | 0.7% | -66.5% |
Asia Pacific | 21,523 | 33.6% | 22,332 | 35.3% | +3.8% |
Africa | 1,038 | 2% | 874 | 1.4% | -15.8% |
TOTAL | 63,981 | 100% | 63,299 | 100% | -1.1% |
3.1.1. Construction
Construction | |||||||||||
Euro Million | Dragados | HOCHTIEF (ACS contr.) | Adjustments | Total | |||||||
6M19 | 6M20 | Var. | 6M19 | 6M20 | Var. | 6M19 | 6M20 | 6M19 | 6M20 | Var. | |
Sales | 2,189 | 2,068 | -5.5% | 12,009 | 11,947 | -0.5% | 0 | 0 | 14,199 | 14,015 | -1.3% |
EBITDA | 193 | 183 | -5.1% | 909 | 802 | -11.8% | (52) | 18 | 1,049 | 1,002 | -4.5% |
Margin | 8.8% | 8.8% | 7.6% | 6.7% | 7.4% | 7.2% | |||||
EBIT | 138 | 142 | +3.3% | 547 | 461 | -15.6% | (75) | (5) | 610 | 599 | -1.8% |
Margin | 6.3% | 6.9% | 4.6% | 3.9% | 4.3% | 4.3% | |||||
Net Financial Results | (24) | (44) | (62) | (82) | 0 | 0 | (86) | (126) | |||
Equity Method | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||
Other Results & Fixed Assets | (7) | (2) | 5 | (6) | 0 | (0) | (3) | (8) | |||
EBT | 106 | 96 | -9.7% | 490 | 374 | -23.6% | (75) | (5) | 521 | 465 | -10.7% |
Taxes | (30) | (25) | (134) | (110) | 7 | 7 | (156) | (127) | |||
Minorities | (0) | (0) | (215) | (161) | 35 | 0 | (180) | (161) | |||
Net Profit | 76 | 71 | -6.1% | 141 | 103 | -26.6% | (33) | 3 | 184 | 177 | -3.7% |
Margin | 3.5% | 3.5% | 1.2% | 0.9% | 1.3% | 1.3% | |||||
Backlog | 14,556 | 13,097 | -10.0% | 49,425 | 50,202 | +1.6% | 63,981 | 63,299 | -1.1% | ||
Months | 36 | 32 | 23 | 22 | 25 | 24 |
Note: The column "Adjustments" includes the removal of Abertis' contribution through HOCHTIEF, PPA adjustments, PPA depreciation, and consequently the
impact on tax and minorities.
- Dragados decreased its sales by 5.5% mainly due to the reduction of the European activity. EBITDA margin remained stable while EBIT margin improved in 60 b.p. Thus, Dragados Net Profit reached € 71 million, in line with sales evolution.
-
HOCHTIEF sales remained almost stable. Growth in North America offset the pandemic impact in Asia Pacific region, particularly worsen by the Australian dollar exchange rate.
Operating margins increased in core areas except for Abertis' contribution which disrupted EBITDA's growth. Nonetheless, Turner's activity weight, with a lower risk profile, made business mix vary driving to a slight decrease in operating margins.
HOCHTIEF's net profit reached € 202 million, affected by Abertis' negative contribution during the period (€ 18 million). Not considering this impact net result was reduced only 2.9%.
19
RESULTS REPORT H1 2020
HOCHTIEF | ||||||||||||||
Euro Million | America | Asia Pacific | Europe | Holding | Total | |||||||||
6M19 | 6M20 | Var. | 6M19 | 6M20 | Var. | 6M19 | 6M20 | Var. | 6M19 | 6M20 | 6M19 | 6M20 | Var. | |
Sales | 7,017 | 7,607 | +8.4% | 4,352 | 3,688 | -15.2% | 574 | 595 | +3.6% | 66 | 57 | 12,009 | 11,947 | -0.5% |
EBITDA | 195 | 218 | +11.7% | 640 | 583 | -9.0% | 50 | 51 | +0.6% | 23 | (50) | 909 | 802 | -11.8% |
Margin | 2.8% | 2.9% | 14.7% | 15.8% | 8.8% | 8.5% | 0.0% | 0.0% | 7.6% | 6.7% | ||||
EBIT | 156 | 172 | +10.0% | 346 | 317 | -8.4% | 27 | 24 | -10.7% | 18 | (51) | 547 | 461 | -15.6% |
Margin | 2.2% | 2.3% | 7.9% | 8.6% | 4.6% | 4.0% | 0.0% | 0.0% | 4.6% | 3.9% | ||||
Net Financial Results | (4) | (9) | (57) | (80) | (9) | (7) | 8 | 14 | (62) | (82) | ||||
Equity Method | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Other Results & Fixed Assets | (0) | (0) | (3) | (7) | 8 | 1 | (0) | (0) | 5 | (6) | ||||
EBT | 153 | 163 | +7.1% | 286 | 230 | -19.7% | 25 | 18 | -27.8% | 26 | (37) | 489 | 374 | -23.6% |
Taxes | (41) | (35) | (85) | (69) | (6) | (0) | (2) | (5) | (134) | (110) | ||||
Minorities | (14) | (21) | (63) | (41) | 0 | 0 | 0 | 0 | (77) | (62) | ||||
Net Profit | 98 | 107 | +9.3% | 138 | 119 | -13.3% | 19 | 18 | -7.7% | 24 | (42) | 279 | 202 | -27.4% |
Margin | 1.4% | 1.4% | 3.2% | 3.2% | 3.4% | 3.0% | 2.3% | 1.7% |
Amongst HOCHTIEF's different areas of activity, it is worth highlighting:
- The 8.4% growth in Hochtief America sales was underpinned by Turner's outperformance. Operating margins remained almost stable and net profit increased by 9.3%.
- Sales in Asia Pacific (CIMIC) decreased by 15.2% due to the impact of COVID-19 and the Australian dollar depreciation.
- Europe showed a good sale's evolution with a conjunctural impact on operating margins related to COVID-19.
- Corporation Net Profit included Abertis' net contribution in the period from HOCHTIEF's stake, amounting to negative € (18) million, versus € 52 million in H1 2019.
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RESULTS REPORT H1 2020
3.1.2 Concessions
Concessions | Key figures | ||
Euro Million | 6M19 | 6M20 | Var. |
Sales | 37 | 35 | -5.8% |
Iridium | 37 | 35 | |
Abertis | - | - | |
EBITDA | 144 | (32) | -122.3% |
Iridium | 14 | 13 | |
Abertis | 130 | (45) | |
EBIT | 137 | (40) | -129.0% |
Iridium | 7 | 6 | |
Abertis | 130 | (45) | |
Net Profit | 110 | (16) | -115.0% |
Iridium | 6 | 20 | |
Abertis | 104 | (37) |
Iridium
- The sale of 74% of the capital of a holding that had all the stake in six shadow toll concession in Spain was agreed in 2019 last quarter. This transaction was completed in 2020 first half.
- Iridium, apart from holding 26% stake in the company owner of the concessions, continues managing and operating these assets.
Abertis
-
Abertis' contribution to the Group's Net profit amounted to negative € (36.6) million, from which €
(27.3) million corresponded to ACS direct stake, and the remaining € (9.4) million to the indirect stake through HOCHTIEF, once minority interests were deducted.
Abertis | Key figures | ||
Million euros | 6M19 | 6M20 | Var |
Sales | 2,592 | 1,789 | -31% |
EBITDA | 1,784 | 1,109 | -38% |
Net Profit (Pre PPA) | 514 | 134 | -74% |
- The significant reduction of Abertis' contribution was due to the impact of the pandemic on its activity. Revenues were down 31%. Abertis' net profit before PPA stood at € 134 million.
- On April 28th Abertis paid 50% of the total dividend amounting to € 875 million. ACS received a total amount of € 216 million. Abertis' General Shareholders Meeting agreed to pay the remaining dividend on 2020 last quarter, subjected to approval by the Board of Directors on COVID - 19 impact.
- In June, Abertis completed the acquisition of Red de Carreteras de Occidente (RCO) in Mexico, one of the largest highway operators in the country. The 50.1% investment rose up to € 1,477 million.
21
RESULTS REPORT H1 2020
3.2 Industrial Services
Industrial Services | Key Figures | ||||
Euro Million | 6M19 | 6M20 | Var. | ||
Turnover | 3,804 | ||||
3,540 | -6.9% | ||||
EBITDA | 413 | 385 | -6.6% | ||
Margin | 10.8% | 10.9% | |||
EBIT | 356 | 332 | -6.7% | ||
Margin | 9.4% | 9.4% | |||
Net Profit | 221 | 206 | -7.0% | ||
Margin | 5.8% | 5.8% | |||
Backlog | 9,794 | 9,850 | +0.6% | ||
Months | 18 | 19 | |||
- Sales in Industrial Services accounted for € 3,540 million, decreasing by 6.9%, due to COVID-19 impact and therefore less number of renewable energy projects launched.
- The activity in South America increased by 20.5% boosted by the development of energy infrastructures, mainly in Brazil. However, North America region was affected by Mexico, which was particularly affected by both the currency devaluation and the exacerbation of the pandemic during Q2 2020.
- Operating results stood in line with sales, resulting in stable margins based on business diversification, considering both geography and area of activity.
- Net profit accounted for € 206 million, in line with sales evolution.
Industrial Services | Turnover breakdown by activity | ||
Euro Million | 6M19 | 6M20 | Var. |
Support Services | 2,105 | 2,295 | +9.0% |
Networks | 373 | 340 | -8.8% |
Specialized Products | 1,241 | 1,553 | +25.1% |
Control Systems | 490 | 401 | -18.1% |
EPC Projects | 1,734 | 1,240 | -28.5% |
Renewable Energy: Generation | 22 | 19 | -15.2% |
Consolidation Adjustments | (56) | (14) | |
TOTAL | 3,804 | 3,540 | -6.9% |
International | 2,127 | 2,375 | +11.7% |
% over total sales | 55.9% | 67.1% |
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RESULTS REPORT H1 2020
Industrial Services | Sales per geographical areas | ||
Euro Million | 6M19 | 6M20 | Var. |
Spain | 1,677 | 1,165 | -30.6% |
Rest of Europe | 210 | 220 | +4.8% |
North America | 556 | 458 | -17.8% |
South America | 1,040 | 1,253 | +20.5% |
Asia Pacific | 197 | 222 | +12.7% |
Africa | 123 | 223 | +80.6% |
TOTAL | 3,804 | 3,540 | -6.9% |
- Backlog amounted to € 9,850 million, equivalent to 19 months. International Backlog represented 64.1% of total.
Industrial Services | Backlog per activity | ||
Euro Million | Jun-19 | Jun-20 | Var. |
Support Services | 5,347 | 4,982 | -6.8% |
Networks | 542 | 646 | +19.3% |
Specialized Products | 3,387 | 2,983 | -11.9% |
Control Systems | 1,418 | 1,353 | -4.6% |
EPC Projects | 4,406 | 4,820 | +9.4% |
Renewable Energy: Generation | 41 | 49 | - |
TOTAL BACKLOG | 9,794 | 9,850 | +0.6% |
International | 7,476 | 6,309 | -15.6% |
% over total backlog | 76.3% | 64.1% | |
Industrial Services | Backlog per geographical areas | ||
Euro Million | Jun-19 | Jun-20 | Var. |
Spain | 2,318 | 3,541 | +52.8% |
Rest of Europe | 719 | 675 | -6.2% |
North America | 1,561 | 1,167 | -25.3% |
South America | 3,760 | 3,116 | -17.1% |
Asia Pacific | 912 | 681 | -25.3% |
Africa | 524 | 670 | +28.1% |
TOTAL | 9,794 | 9,850 | +0.6% |
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RESULTS REPORT H1 2020
3.3 | Services | |||
Services | Key figures | |||
Euro Million | 6M19 | 6M20 | Var. | |
Turnover | 786 | 759 | -3.4% | |
EBITDA | 47 | 21 | -54.7% | |
Margin | 5.9% | 2.8% | ||
EBIT | 28 | 0 | -99.6% | |
Margin | 3.6% | 0.0% | ||
Net Profit | 19 | 1 | -96.8% | |
Margin | 2.4% | 0.1% | ||
Backlog | 2,727 | 2,663 | -2.3% | |
Months | 21 | 21 |
- The impact of the COVID outbreak on Services' activity has been uneven. On the one hand, there has been reinforcement of some cleaning and disinfection of critical facilities such as hospitals or public dependencies. On the other hand, there has been a drastic reduction of cleaning services of social infrastructure that have ceased their activity such as schools, leisure centres, non-essential facilities and air transport. The impact on margins was due to a highly labour intensive cost structure and a cost overrun of specific materials for workers' health safety.
Services | Sales per geographical areas | ||
Euro Million | 6M19 | 6M20 | Var. |
Spain | 732 | 704 | -3.8% |
United Kingdom | 42 | 45 | +7.6% |
Portugal | 12 | 10 | -12.0% |
TOTAL | 786 | 759 | -3.4% |
- Services Backlog reached € 2,663 million, equivalent to over 21 months of production.
Services | Backlog per geographical areas | ||
Euro Million | 6M19 | 6M20 | Var. |
Spain | 2,491 | 2,428 | -2.5% |
United Kingdom | 155 | 158 | +1.8% |
Portugal | 81 | 78 | -3.5% |
TOTAL | 2,727 | 2,663 | -2.3% |
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RESULTS REPORT H1 2020
- Post results events
- At the beginning of July 2020, part of Hochtief's commercial paper program amounting to € 750 million approved in May 2020, was successfully placed on the market. As of July 21th, 2020, there were bonds for a total amount of € 409 million with an average maturity of three months and an average cost of -0.13% under this program. The amounts received have been partially used to repay in advance the amounts drawn down from the credit facilities.
- On July 29th, 2020, Cimic announced that is having advanced negotiations and that it has signed an exclusivity agreement, with funds advised by Elliott Advisors (UK) Limited, Elliott, in relation to the possible investment of 50% in the capital of Thiess, the world's largest mining services company, which would allow joint control of the same by Cimic and Elliott.
The entry of a financial partner into Thiess will enable it to take advantage of growth opportunities in the mining sector, while maintaining the strength of Cimic's balance sheet.
Cimic expects that the negotiations, which are in an advanced stage, will conclude in the coming weeks with the signing of a sale agreement that would be subject to the usual conditions in this type of transaction, including regulatory approvals.
- Description of main risks and uncertainties
- ACS Group develops its activities in different sectors, countries and socioeconomic and legal environments involving risk exposure, inherent to the businesses it operates in.
- ACS Group monitors and controls these risks in order to avoid a decline in the profitability of its shareholders, a danger to its employees or its corporate reputation, a problem for its customers or a negative impact on the Group as a whole. For risk-control, ACS Group has instruments to identify and manage them properly with sufficient time, either by preventing its materialization or by minimizing impacts.
- In addition to those inherent risks to the different businesses in which it operates, ACS Group is exposed to various financial risks, either by changes in interest or exchange rates, liquidity risks or credit risks.
- Risks arising from changes in the cash flow interest rates are mitigated by ensuring rates through financial instruments which may cushion its fluctuation.
- Risk management related to exchange rates is carried out by taking debt in the same functional currency as that of the assets that the Group finances overseas. To cover net positions in currencies other than the euro, the Group arranges various financial instruments in order to reduce such exposure to exchange rate risks.
- The most important aspects impacting the financial risks of ACS during 2020 first half are:
-
ACS, Actividades de Construcción y Servicios, SA, has renewed the Euro Commercial
Paper (ECP) program for a maximum amount of € 750 million, the Negotiable
European Commercial Paper program (NEU CP), extending the maximum amount from € 300 to € 500 million, and the debt issuance program called Euro Medium Term Note Program (EMTN Program). From this last one, a total amount of € 750 million has been issued in 2020 first half with a request that has doubled the issuing amount.
- The AGM held on May 8th 2020 agreed to delegate to the Board of Directors the power to increase, once or several times, the company's share capital by a
25
RESULTS REPORT H1 2020
maximum amount of up to 50% of the capital, within a maximum term of five years from the date of the aforementioned AGM.
- The rating agency Standard and Poor's (S&P) maintained in May 2020 the long-term BBB and A-2short-term corporate credit rating ("investment grade"), with stable outlook, to ACS, Actividades de Construcción y Servicios, S.A. Likewise, HOCHTIEF and CIMIC maintained the same credit rating.
- The Integrated Annual Report, which includes Non-Financial Information, Corporate Governance Reports, and ACS Group Consolidated Financial Statements (www.grupoacs.com), discusses more in detail the risks and the tools for its control. Likewise, HOCHTIEF's Annual Report (www.hochtief.com) details the risks inherent to the German company and its control mechanisms.
- For the next six months, from the closing date of the accounts referred to in this document, ACS Group, based on information currently available, does not expect to deal with situations of risk and uncertainty significantly different to those of the last year, particularly those derived from the internationalization of the Group's activities, but particularly the ones derived from the uncertainty about the duration and degree of incidence on COVID 19 pandemic. Therefore, depending on, among others, the possible restrictions on the free movement of people (quarantine or lockdown), temporary closure of industries and/ or customs, etc. that different authorities could impose in countries where the Group operates, the impact of which, to the present date, cannot be foreseen neither in the economies of those countries nor on the operations of ACS Group in particular.
6 Corporate Social Responsibility
- ACS Group is a worldwide reference in the infrastructure development industry, and it is deeply committed to economic and social progress in the countries where it is present.
- ACS Group Corporate Social Responsibility Policy, reviewed and approved by the Board of Directors on their meeting on February 25th 2016, established the basic and specific principles of action in this area, as well as in the Group's relationship with its environment.
- Basic principles of action
- ACS Group and its affiliate companies are fully committed to promoting, strengthening and controlling issues related to ethics and integrity, through measures to prevent, detect and eradicate bad practices.
- The Group has developed and implemented its General Code of Conduct which is applicable to its employees, suppliers and subcontractors. In addition, training initiatives are carried out in order to inform all three groups of the Code, as well as the implementation of ACS Group Ethics Channel which enables any person to communicate inappropriate conduct or breaches of the Code of Conduct if there were to occur.
- ACS Group upholds full commitment of rigorousness in the disclosure of information with due respect to the interests of clients and remaining social interlocutors of the company.
- Specific principles of action
- To coordinate ACS Group's Corporate Social Responsibility policy, taking into consideration its operational decentralization and geographic breadth, the Group has developed project "one", which aims at promoting good management practices and the extension of corporate culture through specific homogenous principles across the Group in relation to its stakeholders, customers, employees, suppliers, shareholders and the society in general.
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RESULTS REPORT H1 2020
- The areas of non-financial management in which these principles of action are focused on are:
- the quality of products and services
- occupational safety
- recruitment and retention of talent
- protection of the environment
- innovation and development
- social action
- ACS Group detail policies' results on Corporate Social Responsibility is collected and published frequently on the Group's web page (www.grupoacs.com) and on the Integrated Annual Report, also available in the same web page. Likewise, HOCHTIEF's Annual Report (www.hochtief.com) details the most relevant aspects regarding the Corporate Social Responsibility of this company and its subsidiaries.
7 Information on related parties
- Information regarding transactions with related parties is carried out in the relevant section of the annual financial report regularly submitted to the CNMV.
- All these commercial relationships with related parties have been made in the ordinary course of business, market conditions and correspond to normal operations of the Group's Companies, and have not materially affected the financial position nor results of operations during this period.
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RESULTS REPORT H1 2020
8 Annex
8.1 Main figures per area of activity
TURNOVER | |||||
Euro Million | 6M19 | 6M20 | Var. | ||
Infrastructures | 14,235 | 76 % | 14,049 | 77 % | -1.3% |
Industrial Services | 3,804 | 20 % | 3,540 | 19 % | -6.9% |
Services | 786 | 4 % | 759 | 4 % | -3.4% |
Corporation / Adjustments | (9) | (12) | |||
TOTAL | 18,817 | 18,337 | -2.6% | ||
EBITDA | |||||
Euro Million | 6M19 | 6M20 | Var. | ||
Infrastructures | 1,193 | 72 % | 970 | 70 % | -18.7% |
Industrial Services | 413 | 25 % | 385 | 28 % | -6.6% |
Services | 47 | 3 % | 21 | 2 % | -54.7% |
Corporation / Adjustments | (31) | (31) | |||
TOTAL | 1,621 | 1,345 | -17.0% | ||
EBIT | |||||
Euro Million | 6M19 | 6M20 | Var. | ||
Infrastructures | 746 | 66 % | 559 | 63 % | -25.1% |
Industrial Services | 356 | 31 % | 332 | 37 % | -6.7% |
Services | 28 | 3 % | 0 | 0 % | -99.6% |
Corporation / Adjustments | (33) | (33) | |||
TOTAL | 1,098 | 859 | -21.8% | ||
NET PROFIT | |||||
Euro Million | 6M19 | 6M20 | Var. | ||
Infrastructures | 294 | 55 % | 161 | 44 % | -45.4% |
Industrial Services | 221 | 41 % | 206 | 56 % | -7.0% |
Services | 19 | 4 % | 1 | 0 % | -96.8% |
Corporation / Adjustments | (12) | (6) | |||
TOTAL | 523 | 361 | -30.9% | ||
AWARDS | |||||
Euro Million | 6M19 | 6M20 | Var. | ||
Infrastructures | 19,091 | 12,155 | -36.3% | ||
Industrial Services | 3,528 | 3,906 | +10.7% | ||
Services | 485 | 560 | +15.5% | ||
Corporation / Adjustments | 0 | 0 | |||
TOTAL | 23,104 | 16,621 | -28.1% | ||
BACKLOG | |||||
Euro Million | Jun-19 | months | Jun-20 | months | Var. |
Infrastructures | 63,981 | 25 | 63,299 | 24 | -1.1% |
Industrial Services | 9,794 | 18 | 9,850 | 19 | +0.6% |
Services | 2,727 | 21 | 2,663 | 21 | -2.3% |
TOTAL | 76,502 | 24 | 75,812 | 23 | -0.9% |
NET DEBT | |||||
Euro Million | Jun-19 | Jun-20 | Var. | ||
Infrastructures | 1,630 | (65) | -104.0% | ||
Industrial Services | 614 | 572 | -6.8% | ||
Services | (63) | (174) | +174.5% | ||
Corporation / Adjustments | (2,905) | (3,032) | +4.4% | ||
TOTAL | (725) | (2,699) | n.a. |
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RESULTS REPORT H1 2020
8.2 Share data
ACS Shares Data (YTD) | 6M19 | 6M20 |
Closing price | 35.11 € | 22.44 € |
Performance | 1.36% | -36.09% |
Period High | 40.97 € | 35.89 € |
High date | 30-Apr | 2-Jan |
Period Low | 32.62 € | 11.20 € |
Low date | 2-Jan | 19-Mar |
Average in the period | 37.65 € | 22.78 € |
Total volume (´000) | 81,116 | 211,741 |
Daily average volume (´000) | 649 | 1,680 |
Total traded effective (€ mn) | 3,054 | 4,823 |
Daily average effective (€ mn) | 24.43 | 38.28 |
Number of shares (mn) | 314.66 | 314.66 |
Market cap (€ mn) | 11,048 | 7,061 |
40 € | 6,000 | |||
35 | € | |||
5,000 | ||||
30 | € | |||
4,000 | ||||
25 | € | |||
Price | 20 | € | 3,000 | ('000) |
Closing | Volume | |||
15 | € | |||
2,000 | ||||
10 | € | |||
1,000 | ||||
5 | € | |||
0 | € | 000 |
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RESULTS REPORT H1 2020
8.3 Exchange Rate Effect
EXCHANGE RATE EFFECT
EXCHANGE RATE EFFECT | Average Exchange Rate | |||
(€ vs. currency) | Jun-19 | Jun-20 | difference | % |
1 US Dollar | 1.1315 | 1.1033 | (0.0282) | -2.5% |
1 Australian Dollar | 1.5981 | 1.6827 | 0.0845 | +5.3% |
1 Mexican Peso | 21.7575 | 24.2636 | 2.5061 | +11.5% |
1 Brazilian Real | 4.3324 | 5.5821 | 1.2497 | +28.8% |
EXCHANGE RATE EFFECT | Closing Exchange Rate | |||
(€ vs. currency) | Jun-19 | Jun-20 | difference | % |
1 US Dollar | 1.1380 | 1.1198 | (0.0182) | -1.6% |
1 Australian Dollar | 1.6244 | 1.6344 | 0.0100 | +0.6% |
1 Mexican Peso | 21.8400 | 25.9241 | 4.0841 | +18.7% |
1 Brazilian Real | 4.3760 | 6.1390 | 1.7630 | +40.3% |
EXCHANGE RATE EFFECT | Grupo ACS | |||
Euro million | USD | AUD | Others | Total |
Backlog | 462 | (144) | (1,147) | (829) |
Sales | 217 | (198) | (313) | (294) |
Ebitda | 5 | (29) | (27) | (52) |
Ebit | 3 | (15) | (25) | (37) |
Net Profit | (0) | (2) | (13) | (15) |
EXCHANGE RATE EFFECT | Infrastructures | |||
Euro Million | USD | AUD | Others | Total |
Backlog | 455 | (143) | (236) | 75 |
Sales | 211 | (197) | (22) | (8) |
Ebitda | 5 | (29) | (0) | (24) |
Ebit | 3 | (15) | 0 | (11) |
Net Profit | 0 | (2) | 1 | (0) |
EXCHANGE RATE EFFECT | Industrial Services | |||
Euro Million | USD | AUD | Others | Total |
Backlog | 7 | (1) | (909) | (902) |
Sales | 6 | (1) | (291) | (286) |
Ebitda | (0) | (0) | (27) | (27) |
Ebit | (0) | (0) | (25) | (26) |
Net Profit | (0) | (0) | (15) | (15) |
EXCHANGE RATE EFFECT | Services | |||
Euro Million | USD | AUD | Others | Total |
Backlog | 0 | 0 | (2) | (2) |
Sales | 0 | 0 | (0) | (0) |
Ebitda | 0 | 0 | (0) | (0) |
Ebit | 0 | 0 | (0) | (0) |
Net Profit | 0 | 0 | 0 | 0 |
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RESULTS REPORT H1 2020
8.4 Main Awards
8.4.1 Infrastructures
In blue the ones related to this period
Project | Type of Project | Region | € mn |
Five-year contract extension by Jellinbah Group to continue to provide mining | Mining | Asia Pacific | 1,538.7 |
services at its Lake Vermont Coal Mine in Queensland (Australia) | |||
Construction of a New Bed Tower and Clinical Services Podium adjacent to the | |||
existing Wexner Medical Center Hospital.The work will also include the | Building | United States | 400.0 |
demolition of existing facilities and parking garages and include the construction | |||
of two new parking garages (Columbus, Ohio, United States) | |||
Construction of a new facility to house all current USDOT and Volpe Center | |||
functions in a single building on the existing Cambridge campus. The new | Building | United States | 376.0 |
building is 13 stories tall and 400,000 sf ( (Cambridge, Massachusetts, United | |||
States) | |||
Contract to widen and rehabilitate 53.6 lane miles of U.S. Highway 50 between | Civil Works | United States | 351.0 |
Watt Avenue and Interstate 5 in Sacramento, California (United States) | |||
Contracts to provide maintenance for UGL´s clients in the oil and gas sector in | Services | Asia Pacific | 276.8 |
Western Australia and Victoria (Australia) | |||
Design and construction of the project for a new section of the A15 motorway and | |||
additional lanes in sections of the A12 / A15 motorway in the vicinity of the city of | Civil Works | Europe | 194.8 |
Arnhem (Netherlands) | |||
Contract to build the replacement of the A40 Rhine Bridge in Duisburg- | Civil Works | Europe | 185.2 |
Neuenkamp (Germany) | |||
Design and construction of 19.46 km of the S-61 highway between Prodborze and | Civil Works | Europe | 176.2 |
Sniadowo (Poland) | |||
Design and construction to retrofit Stony Brook University into an Alternate Care | Building | United States | 142.0 |
Facilitiy to serve COVID patients ( New York, United States) | |||
Contract to deliver the Joy Baluch AM Bridge Duplication in Port Augusta; the Port | |||
Wakefield Overpass and Highway Duplication; and the Augusta Highway Planning | Civil Works | Asia Pacific | 139.3 |
Project located between Port Augusta and Port Wakefield (Australia) | |||
Construction of 12.49 km of the A2 motorway between Warsaw and Kukuryki, on | Civil Works | Europe | 123.0 |
the section between Gręzów and Swoboda (Poland) | |||
Contract for the rehabilitation and lane replacements of a portion Route 210 | Civil Works | United States | 123.0 |
located in Los Angeles, California (United States) | |||
Contract for the reconstruction of Taxiway C at Love Field Airport located in | Civil Works | United States | 113.0 |
Dallas, Texas (United States) | |||
Several mining sector contracts with multiple clients in Western Australia and | Mining | Asia Pacific | 111.2 |
Queensland (Australia) | |||
UGL´s contracts in railways sector: contract to deliver operations and | |||
maintenance of Adelaide's North - South tram and bus network and a contract to | Services | Asia Pacific | 103.5 |
manufacture new locomotives for Qube Logistics (Australia) | |||
Contract to deliver upgrades to two major regional highway projects: South | |||
Gippsland Highway Upgrade between Koonwarra and Meeniyan in Victoria and | Civil Works | Asia Pacific | 100.7 |
Mackay Northern Access Upgrade at Mackay Queensland (Australia) | |||
Building of the new Amazon warehouse in Murcia (Spain) | Building | Spain | 97.4 |
Design and construction of 6,67 km of the S-7 highway between Plotnisko and | Civil Works | Europe | 87.4 |
Lesznowola (Poland) | |||
Building of two residential towers of two heights, with 24 and 14 floors above | Building | Spain | 78.4 |
ground, in Madrid (Spain) | |||
Building of industrial plant for the production of euro banknotes and the | Building | Spain | 78.1 |
administrative building of Imbisa (Madrid, Spain ) | |||
Project for the duplication of the roadway of the N-220 highway in the section | |||
between the airport link and the link with the V-30 motorway, as well as other | Civil Works | Spain | 69.8 |
accessory works (Valencia, Spain) | |||
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RESULTS REPORT H1 2020
Project | Type of Project | Region | € mn | |||
Project for the comprehensive rehabilitation of the current Montemadrid | ||||||
Foundation building to convert it into a 5-star hotel with 200 rooms (Madrid, | Building | Spain | 45.1 | |||
Spain) | ||||||
Building of 195 residential homes in Las Rozas (Madrid, Spain) | Building | Spain | 32.1 | |||
Construction of two industrial warehouses in the Nissan supplier park (Avila, | Building | Spain | 27.8 | |||
Spain) | ||||||
8.4.2 | Industrial Services | |||||
Project | Type of Project | Region | € mn | |||
Contract with Naturgy for the comprehensive service of construction and | Networks | Spain | 41.6 | |||
maintenance of distribution networks, meter reading and service orders (Spain) | ||||||
Contract for the development of installation work for the Puelche Wind Farm | Specialized | Latin america | 32.1 | |||
with 156 MW of installed capacity (Chile) | Products | |||||
Contract with Telxius Towers for the planning and building of telecommunication | Specialized | Europe | 27.0 | |||
base transceiver station (BTS) in Germany | Products | |||||
Operation and maintenance system for electric buses at King Saud Bin Abdulaziz | Control Systems | Asia and the | 22.8 | |||
University in Riyahd (Saudi Arabia) | Middle east | |||||
Contract with Vodafone to deploy the 5G internet network in Spain | Specialized | Spain | 19.9 | |||
Products | ||||||
Contract for the installation of lines and internet with Telefónica Colombia | Specialized | Latin america | 15.2 | |||
Products | ||||||
Installation of systems in the high performing educational center for second | Specialized | Latin america | 14.8 | |||
grade students in Tacna (Peru) | Products | |||||
Contract with Telefónica for the installation of systems (central and southern | Specialized | Spain | 10.5 | |||
zone) (Spain) | Products | |||||
Work for the execution of installations in the new power plant in Barajas (Madrid, | Specialized | Spain | 10.1 | |||
Spain) | Products | |||||
8.4.3 | Servicios | |||||
Project | Type of Project | Region | € mn | |||
Renewal of the home help services contract for the Madrid City Council (Spain) | Services for | Spain | 244.8 | |||
buildings | ||||||
Renewal of the cleaning service contract in the primary care centers and | Services for | Spain | 31.6 | |||
corporate center of the Institut Català de la Salut (Spain) | buildings | |||||
Extension of the cleaning service contract in the facilities of the Virgen de las | Services for | Spain | 18.0 | |||
Nieves and San Cecilio hospitals (Granada, Spain) | buildings | |||||
Extension of the cleaning service contract for facilities of the Generalitat | Services for | Spain | 17.3 | |||
Valenciana (Spain) | buildings | |||||
Extension of the cleaning service contract in facilities of the Ministry of Defense | Services for | Spain | 14.3 | |||
(Spain) | buildings | |||||
Extension of the cleaning service contract for hospitals in the Community of | Services for | Spain | 12.8 | |||
Madrid (Spain) | buildings | |||||
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RESULTS REPORT H1 2020
9 ACS Group organizational structure
ACS Group is a worldwide leader in the infrastructure industry. This sector contributes to a great extent to the economic and social development of the world's different regions in an increasingly competitive, demanding and global market.
Main Group areas:
a) Infrastructure
This area includes Construction and Concession activities performed by Dragados, Hochtief (including CIMIC), and Iridium and the stake in Abertis. It is oriented towards the development of different projects such as Civil Works, Building and activities related to the mining sector (carried out by CIMIC, mainly in Asia Pacific) and the development and concession of transport concessions. The geographic regions with the highest exposure to this area are North America, Asia Pacific and Europe. The Group mainly operates in developed environments, and in geopolitical, macroeconomic and legally safe markets.
b) Industrial Services
This area is devoted to applied industrial engineering, construction developing activities, operation and maintenance of energy services, industrial and mobility infrastructures through an extensive group of companies headed by Grupo Cobra and Dragados Industrial. This area is present in more than 50 countries, with a predominant exposure to the Mexican and Spanish market despite the rapid growth in new Asian countries and Latin American countries.
c) Services
This area is only represented by Clece's facility management activity, which comprises building maintenance, public places and organizations, as well as care assistance. This area is mainly based in Spain, but it is slowly making headway in the European market.
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RESULTS REPORT H1 2020
10 Glossary
ACS Group presents its results in accordance to the International Financial Reporting Standards (IFRS). However, the Group makes use of some alternative measures of performance (AMP) to provide additional information that promote comparability and understanding of its financial information, and facilitates decision making and evaluation of the performance of the group. Below are the most outstanding APMs.
CONCEPT | DEFINITION and COHERENCE | Jun-20 | Jun-19 |
Market capitalisation | Num of shares at period close x price at period close | 7,061 | 11,048 |
Earnings per share | Net Profit of the period / Average num of shares of the period | 1.21 | 1.70 |
Net Attributable profit | Total Income - Total Expenses of the period - Minority interests result | 361 | 523 |
Average num. of shares of the period | Daily average outstanding shares in the period adjusted by treasury stock | 298.2 | 307.2 |
Backlog | Value of the contracts awarded and pending to be executed. In section 1.1, a | 75,812 | 76,502 |
breakdown is made between a direct and proportional portfolio (referring to proportional participation in joint | |||
operating companies and projects not consolidated globally in the Group) | |||
Operating Profit excluding (1) D&A y (2) non recurrent operating results | |||
Gross Operating Profit (EBITDA) | and/or which dont imply a cash flow + Results from Equity Method | 1,345 | 1,621 |
(Associates and Joint Ventures) | |||
(+) Operating Profit | Operating income - Operating expenses | 837 | 893 |
(-) 1.D&A | Operating provisions and fix asset depreciation | (486) | (523) |
(-) 2. Non recurrent operating results and/or which dont | Impairment & gains on fixed assets + other operating results | (15) | (32) |
imply a cash flow | |||
- Results from Equity Method Investments (Associates and Joint Ventures)
Profit before Taxes from foreign joint ventures consolidated by Equity method. It is similar to the
UTEs regime in Spain, thus it is included in the EBITDA in order to standardize the accounting criteria 7 174 with the Group's foreign companies
Net Financial Debt / EBITDA | Net Financial Debt / Annualized EBITDA | 1.0x | 0.2x |
Net Financial Debt (1)-(2) | Gross external financial debt +Net debt with group companies - Cash & Equivalents | 2,699 | 725 |
(1) Deuda Financiera Bruta | Bank debt + Obligations and other negotiable securities + Project finance and non recourse debt | 12,918 | 8,287 |
+ Financial lease + Other l/t non bank debt + Debt with group companies | |||
(2) Cash & Equivalents | Temporary Financial investments + L/T deposits + Cash & Equivalents | 10,219 | 7,562 |
Annualized EBITDA | EBITDA of the period / num of month within the period x 12 months | 2,690 | 3,243 |
Net Cash Flow | (1) Cash Flow from operating activities + (2) Cash Flow from investing | (2,478) | (979) |
activities + (3) Other Cash flows | |||
1. Cash Flow from operating activities | Adjusted Net Profit attributable + Operating working capital variation | (191) | 422 |
ex discontinued operations | |||
Adjusted Net Profit attributable | Net profit attributable (+/-) adjustments of concepts which dont imply an operating cash flow | 1,409 | 1,611 |
Operating working capital variation | Working capital variation of the period (+/-) ajustments of non operating concepts (Ej: dividends, | (1,600) | (1,189) |
interests, taxes, etc) | |||
2. Cash Flow from investing activities | Net investments (paid/collected) | (673) | (923) |
ex discontinued operations | |||
(-) Payments from investments | Payments for operating, project and financial investments. This figure may differ from that shown | (958) | (1,128) |
in section 2.3.2 for reasons of deferral (accruals) ex discontinued operations | |||
(+) Collections from divestments | Collections from operating, project and financial divestments. This figure may differ from that | 285 | 204 |
shown in section 2.3.2 for reasons of deferral (accruals) ex discontinued operations | |||
3. Other Cash Flows | Treasury stock sale/acquisition + Dividend payments + Other financial sources + | (1,614) | (477) |
Op.Lease payments+ Cash generated from discontinued operations | |||
Ordinary Financial Result | Financial Income - Financial expenses | (137) | (138) |
Net Financial Result | Ordinary financial result + Foreing exchange results + Impairment non current | (130) | (95) |
assets results + Results on non current assets disposals | |||
Working Capital | Stock + Total accounts receivables - Total accounts payables - other current | (5,241) | (5,560) |
liabilities | |||
NOTE: All financial indicators and AMPs are calculated under the principles of coherence and homogeneity allowing comparability between periods and in compliance with the applicable accounting rules and standards
Data in million of euros
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RESULTS REPORT H1 2020
CONCEPT | USE |
Market capitalisation | Value of the company in the stock exchange market |
Earnings per share | Indicates the part of the net profit that corresponds to each share |
Backlog | An indicator of the Group's commercial activity. The value divided by the average duration |
of the projects is an approximation to the revenues to be received in the following periods | |
Measure of comparable performance to evaluate the evolution of the Group's operating | |
Gross Operating Profit (EBITDA) | activities excluding depreciation and provisions (more variable items according to the |
accounting criteria used). This AMP is widely used to evaluate the operational performance | |
of companies as well as part of ratios and valuation multiples and measurement of risks | |
Net Financial Debt / EBITDA | Comparable ratio of the Group's indebtedness level. It measures the repayment capacity |
of the financing in number of years. | |
Net Financial Debt (1)-(2) | Total net debt level at the end of the period. In section 1, it is included a breakdown of the net debt of the |
projects (Project Finance) and the net debt of the business | |
(1) Deuda Financiera Bruta | Level of gross financial debt at period end |
(2) Cash & Equivalents | Current liquid assets available to cover the repayment needs of financial liabilities |
Annualized EBITDA | |
Net Cash Flow | Cash generated / consumed of the period |
1. Cash Flow from operating activities | Cash generated by operating activities. Its value is comparable to the Group's EBITDA by |
measuring the conversion of operating income into cash generation | |
2. Cash Flow from investing activities | Funds consumed / generated by investment needs or divestments collections in the period |
3. Other Cash Flows | |
Medida de evaluación del resultado procedente del uso de activos y pasivos financieros. | |
Ordinary Financial Result | Este concepto incluye tanto ingresos y gastos directamente relacionados con deuda |
financiera neta como otros ingresos y gastos financieros no relacionados con la misma | |
Net Financial Result | |
Working Capital | |
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RESULTS REPORT H1 2020
DISCLAIMER
This document contains forward‐looking statements on the intentions, expectations or forecasts of ACS Group or its management at the time the document was drawn up and in reference to various matters including, among others, its customer base, its performance, the foreseeable growth of its business lines and its overall turnover, its market share, the results of ACS Group and other matters relating to the Group's activities and current position. These forward‐looking statements or forecasts can in some cases be identified by terms such as "expectation", "anticipation", "proposal", "belief" or similar, or their corresponding negatives, or by the very nature of predictions regarding strategies, plans or intentions. Such forward‐looking statements or forecasts in no way constitute, by their very nature, guarantees of future performance but are conditional on the risks, uncertainties and other pertinent factors that may result in the eventual consequences differing materially from those contained in said intentions, expectations or forecasts.
ACS, Actividades de Construcción y Servicios, S.A. does not undertake to publicly report on the outcome of any revision it makes of these statements to adapt them to circumstances or facts occurring subsequent to this presentation including, among others, changes in the business of the company, in its strategy for developing this business or any other possible unforeseen occurrence. The points contained in this disclaimer must be taken fully into account by all persons or entities obliged to take decisions or to draw up or to publish opinions on securities issued by ACS Group and, in particular, by the analysts and investors reading this document. All the aforesaid persons are invited to consult the public documentation and information that ACS Group reports to or files with the bodies responsible for supervising the main securities markets and, in particular, with the National Securities Market Commission (CNMV in its Spanish initials).
This document contains financial information drawn up in accordance with International Financial Reporting Standards (IFRS). The information has not been audited, with the consequence that it is not definitive information and is thus subject to possible changes in the future Translation of this report originally issued in Spanish. In event of discrepancy, the Spanish language version prevails.
Investor Relations Department
ACS, Actividades de Construcción y Servicios S.A.
Av. Pío XII, 102
28036 Madrid
- 34 91 343 90 00irgrupoacs@grupoacs.comwww.grupoacs.com
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ACS - Actividades de Construcción y Servicios SA published this content on 14 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 August 2020 17:27:06 UTC