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1
Criteria CaixaCorpResults Presentation
Interim ReportJanuary - September 2007
2
Q3 Highlights
Market Environment:Financial markets turmoil
Liquidity squeezeHighly leveraged sectors penalizedBad results in banking sectorAlthough Spanish economy prospects revisited, growth continues above peers
Criteria CaixaCorp:Pre-IPO reorganization completedSuccessful Roadshow and IPO New strategy announcedGreenshoe exercised and blackout finalized
3
Q3 Highlights – Markets Evolution
Points -70.72% Var. -15.3%
Points +734.6% Var. + 5.0%
Points -243.56% Var. - 5.4%
Value Evolution30jun-15nov
12.500
13.000
13.500
14.000
14.500
15.000
15.500
16.000
16.500
2-jul 16-jul 30-jul 13-ago 27-ago 10-sep 24-sep 8-oct 22-oct 5-nov
3.800
3.900
4.000
4.100
4.200
4.300
4.400
4.500
4.600
2-jul 16-jul 30-jul 13-ago 27-ago 10-sep 24-sep 8-oct 22-oct 5-nov
340
360
380
400
420
440
460
480
2-jul 16-jul 30-jul 13-ago 27-ago 10-sep 24-sep 8-oct 22-oct 5-nov
• Top historical levels in spite of credit crisis
• Index readjusted duringQ1&Q2 due to Real State re-valuations
• Far from top anual levels due to creditcrisis and US dollarexchange rate down.
• Banking, FinancialServices and Insuranceis dragging the indexdown
• General decrease dueto credit crisis. Minimunannual levels
• 19% market cap. decrease since dec’06
CommentsIBEX 35
Eurostoxx 50
DJ Eurostoxx Banks
4
Criteria CaixaCorp Portfolio
FinancialServices
Gas Natural 35.5%Repsol YPF 12.6%
Agbar 23.5%Telefónica 5.5%
Abertis 21.0%
BME 3.5%
% ownershipEnergy
Infrastructure
Services/ Other
BPI
Boursorama
Bank of East Asia
Port Aventura Group CaiFor (Insurance)
Specialized Financial Services
25.0%
20.5%
4.2%
100%
100%
97.1%
% ownership
% ownership % ownership
6,3003,866
2,926
9374,978
129
1,122
173
258
2,179
447
914
Real State Assets 100% 81
Value MM€ Value MM€
Value MM€ Value MM€
List
edN
on li
sted
(In process of disposal)
Value at Sep. 30th
TOTAL 20,131 4,179
17%83%GAV %
5
Listed GAV – Evolution
CriteriaSince 2004 +66.4%YTD 07 +20.5%
IBEX - 35Since 2004 +57.2%YTD 07 +11.8%
Eurostoxx 50Since 2004 +14.9%YTD 07 + 5.0%
10000
12000
14000
16000
18000
20000
22000
ene-04 jul-04 ene-05 jul-05 ene-06 jul-06 ene-07 jul-07
€ in
mill
ion
s
IBEX 35
EUROSTOXX 50
Criteria CaixaCorp
Listed Portfolio
Nov-07Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07
Criteria CaixaCorp listed portfolio performance vs. Reference indicesValue Evolution
15 nov
6
Portfolio – Listed - Price Evolution
€/Share 30/06/2007 15/11/2007 Performance vs Index (%)
Listed - Services (comparable to IBEX 35)
EnergyGas Natural 45.13 42.30 -12%Repsol YPF 29.25 25.66 -18%
InfraestructureAbertis 23.03 22.77 -7%
Services/OtherAgbar 27.19 27.51 -4%Telefónica 16.54 22.61 31%BME 43.45 49.49 8%
Listed - Financial (comparable to DJ Eurostoxx Banks)
BPI 6.58 5.46 -4%Boursorama 12.90 9.43 -14%Bank of East Asia 4.17 4.25 15%
7
In July 2007, Criteria Caixa Corp agreed to purchase the 50% stake in CaiForand the 20% stake in SegurCaixa owned by Fortis. This transaction that has been completed on November 12th.
Main figures(Spanish
Insurance GAAP)
Portfolio – Non listed Financial
100% 100%80%20%
0.5% 0.5%
100%
VidaCaixa: Leader in the Spanish life insurance market in both individual and collective segments
SegurCaixa Non-life bancassurance products in Spain, mainly focused on home insurance. In April 2007, it launched car insurance products
AgenCaixa: company that integrates the more of 300 commercial advisors of CaiFor Group
Shareholding structure after the transaction
30.09.06 30.09.07 % changeRisk Premiums (€MM) 353 437 24%Savings Premiums (€MM) 729 766 5%Net Profit (€MM) 97,7 115,9 19%
31.12.06 30.09.07 % changeClients (milions) 2,91 3,03 4%AuM (€MM) 25.875 26.797 4%Technical Provisions (€MM) 16.173 15.977 -1%Pension Funds (€MM) 9.702 10.820 12%
DividendsDistributed to Criteria
€ MM40
2004 2005 2006 07 Q345 65 44
€ MM 2004 2005 2006 07 Q3
8
4%3,4093,274Number of visits (m)
22.6
47.0
150
Sept 30th, 2007
2%
6%
7%
% Change€ MM Sept 30th, 2006
Net Revenues 140.4
EBITDA 44.4
Net income 22.1
Mainfigures
Portfolio – Non listed Non Financial
Business description
PortAventura is the largest leisure centre in southern Europe with approximately four million visits in 2006Located in Catalonia, the company currently operates– One theme park with 32 attractions– One water park– Three four-star thematic hotels
Real estate projects
PortAventura is in the process of constructing:
– Three golf courses, to be positioned as an international golf destination
– A convention center with capacity for 4,000 people
Portfolio of land to 311.7 hectares capable of urbanisation
9
3Q Investments
(€ M)
Services stakes 120Abertis 60Repsol YPF 33Telefónica 27
Financial stakes 1,238Caifor acquisition 950The Bank of East Asia 269Others 19
Total 3Q Investments (committed and executed) 1,358
Investment policy in line with the strategy set by management, with higher weight of financial stakes and seeking a higher degree of influence
10
3Q Divestments
Caprabo (distribution):In September, the divestment transaction (total of €179M) was completed, obtaining consolidated gross capital gains of €90M (€81M after taxes)IRR since 2003 (gross): 8%
Occidental Hoteles Management (leasure):At the end of July, the divestment of this stake (total of €275M) was carried out, generating consolidated gross capital gains of €50M (€45M after taxes).IRR since 1998 (gross): 1.46%
Total 3Q Divestments €454M
Divestment policy in line with the strategy set by management, with higher asset rotation and moving towards financial stakes
11
NAV evolution since June
25,473
30.10.07
(5,008)
€20,465 MM
GAV
Net Debt
27,363
(1,848)
30.09.07 10.10.07
25,553
(1,547)
IPO Proceeds
3,452
€24,006 MM €25,515 MM
15.11.07
26,915
(1,378)
€25,537 MM€7.78/share €7.30/share €7.59/share€7.76/share
NAV
Green shoe Proceeds396
(4,708)
€21,396 MM
26,104
30.06.07
€8.14/share3,363 million shares3,287 million shares2,630 million shares
12
5,0
5,1
5,2
5,3
5,4
5,5
5,6
5,7
10/10/2007 17/10/2007 24/10/2007 31/10/2007 7/11/2007 14/11/2007
28%
29%
30%
31%
32%
33%
34%
35%
Share evolution
-3.81%
+4.06%
NAV per share
Price (€)
-33.5%
Discount (%)
3,363 million shares3,287 million shares
13
5,00
5,10
5,20
5,30
5,40
5,50
5,60
5,70
5,80
10-oct 16-oct 22-oct 26-oct 1-nov 7-nov 13-nov
Pric
e (€
)Share vs. IBEX since listing
-3.81%
+6.09%Ibex
Criteria (€)
+6.54%
Criteria Listed Portfolio
14
Financials
Interim ReportJanuary - September 2007
15
P&L Criteria non-consolidated
Notes: Information prepared in accordance with the Spanish GAAP. Information not audited
Main items for Criteria CaixaCorp’s non-consolidated income statement January-September
€ in millions 2007 2006 % Change
Income from capital shares 403 367 10%
Recurring expenses -8 -7 14%
Operating Recurring Profit 395 360 10%
Non-recurring profit 1.493 621 140%
Pre-tax profit 1,937 1,095 77%
Net profit 2,030 877 132%
16
P&L Criteria Group
Main items for Criteria CaixaCorp’s consolidated income statement January-September € in millions 2007 2006 %
Change Income from equity investments 192 195 - 2% Profit of companies accounted for using equity method 489 348 41%
Profits/losses (net) of companies using the full or proportionate consolidation method 155 114 36%
Recurring net profit 836 657 27%
Non-recurring profit 382 775 - 51%
Net profit attributed to the group 1,218 1,432 - 15%
17
Leverage
After its IPO, Criteria will leverage its GAV to finance investment opportunities, with net debt between 10% - 20% of GAV
Leverage policy
Net debt proforma
The IPO proceeds, that amount to € 3,848 MM (including greenshoe), will be used to pay down existing debt, reducing the ratio Debt/GAV to 4,3%The company currently holds credit lines up to €5,400M at a cost of Euribor + 30 bps
June 30th, 2007 Sept 30th, 2007
GAV 26,104 25,473
Net debt position (4,708) (5,008)
Debt/ GAV 18.0% 19.7%
18
Dividend Income
During the last quarter of 2007, several of Criteria’s underlying announced changes in their dividend policy, effective as of 2008:
Telefonica: Oct 11th announces 1€/share based on result 2008Repsol YPF: Nov 1st announces a dividend increase of 40% Gas Natural: on Strategic Plan announce at least a 10% increment of dividends.
Portfolio’s 2008
dividend increase
Criteria dividends
policy
High and recurrent dividend income from the main investments of the current portfolio allows Criteria CaixaCorp to offer attractive and stable dividend income to its shareholders Most of the dividends received in our portfolio will be passed through to shareholders. Pay-Out around 90% of the net recurring non-consolidated income
3Q dividend increase
January-September € in millions 2007 2006 %
DIVIDEND INCOME 403 367 10%
19
Investor Relations
Interim ReportJanuary - September 2007
20
Investor Relations
Nov 17th, end of black-out and beginning of the “public period”
Investor Relations department
Grounds and principles for the IR function:More-disclosure communication policy (NAV, unlisted assets, etc.)Information on a regular basis (Quarterly results, AGM, roadshows, etc.)Information upon certain events (press releases & calls for corporate operations, agreements, dividends, and other material facts)Development of specific communication channels for the vast retail shareholder base (+360,000)Service and availability (hot-line, e-mail and meetings)
Phone: +34 93 411 75 75e-mail: [email protected]: Avda. Diagonal, 621-629, Torre II, Planta 3ª.
08028 Barcelona, Spain
Our aims: Transparency and serviceBest in Class in Investor Relations.
21
Next Events
Webcast. Follow-up calls with investors and analysts
Meetings in London & NY
One-on-one calls and meetings
Enhance and complete website contents
Roadshows twice a year
Quarterly and annual results (webcasting)
Investor day
Conferences & Exhibitions
November
December
On request
March
Q1 & Q3
Jan/Mar/Jul/Oct
Q3
All year round
2007
2008
22
2008 Outlook
Interim ReportJanuary - September 2007
23
New strategy by business line
Serv
ices
Listed
International retail banking
Leverage off existing know-howInfluence corporate transactions and expansion processes
Markets with growth prospectsBenefiting from “la Caixa”’sknow-how in retail banking
Strategy Market
Weight in GAV
Europe (primarily Spain)
Europe (Central and Eastern Europe and neighbouring countries)USAsia
Spain and Europe
Growth and consolidation in Spain leveraging off “la Caixa”’sstrong commercial networkComplementing retail international expansion
Insurance and specialised financial services
TodayMedium / Long term objective
82%
7%
11%
60-40%
40-60%
Crit
eria
Cai
xaC
orp
Fina
ncia
l
Increasing exposure to financial businesses
24
Relevant events in our portfolio
BPI: Currently under negotiations for a merger with BCP. No calendar has been established.
Gas Natural: New Strategic Plan sets a good basis for continued value creation, reduces company’s risk profile and provides attractive potential returns.
Agbar Takeover: Clearance from European Commission and expected authorization from CNMV soon.
BEA: “la Caixa” has signed a strategic agreement with The Bank of East Asia which adds more value to our recent investment.
IBEX 35: High expectations to be included very soon.
25
2008 Main Objectives
To create long term value for our shareholders through:
Shareholder remuneration attractive proposal
Active Management
Highly competitive operating costs (below benchmarks)
Excellence in Corporate Governance
Best in class in Investor Relations
Management remuneration aligned with value creation
26
Criteria CaixaCorp
Q&A
27
Additional information
Interim ReportJanuary - September 2007
28
Listed GAV details
Company Num. of shares
Price per share
Market value (€ MM)
%/ GAV
Gas Natural 159,078,266 39.60 6,299 25.8
Repsol YPF 154,344,000 25.05 3,866 15.8
Abertis A 125,603,264 21.93 2,754 11.3
Abertis B 8,259,753 20.79 172 0.7
SGAB 35,177,029 26.65 937 3.8
Telefónica 216,644,332 19.63 4,253 17.4
Telefónica Equity Swap 45,000,000 16.14 726 3.0
BME 2,953,259 43.54 129 0.5
Banco BPI 190,185,268 5.90 1,122 4.6
Boursorama 17,758,648 9.72 173 0.7
Bank of East Asia 65,046,171 3.96 258 1.1
29
Consolidation Rules
Main differences between non-consolidated and consolidated income statement
Dividends received from the companies held directly by Criteria
Non- Consolidated income statement (Spanish GAAP) Consolidated income statement (IFRS)
Only dividends from the Available-for-sale holdings
Income from equity investments
Profits and losses of companies full or proportionate consolidated
Profit from divestments materialized by Criteria (profits obtained from divestments made by holding subsidiaries are not included)
Profit from divestments materialized by Criteria Group, considering consolidated costs
Key information to consider:Non- Consolidated Financial
Statements Consolidated Financial Statements
Leverage (except treasury maintained in subsidiary holding companies)
Recurrent income key for the calculation of the dividends to distribute to shareholders
Profit from divestments
Profit attributed to the group