At the close of 2016, operating income from Saba’s assets under management stands at 236 million euros, while EBITDA totalled 124 million euros. Without taking into account the contribution of logistics parks and the impact of divestments—in other words, in terms of the car park business—ordinary income would be 205 million euros and EBITDA would be 94 million euros, with a 46% margin, which has grown in recent years and is the highest in the sector among large companies worldwide. Saba’s salient figures reflect, on the one hand, this good business performance and, on the other hand, the efforts made by the organisation as a whole to increase the operational efficiency of the business, to implement initiatives that allow the company to become a leader in the sector—putting special emphasis on new support systems, new technologies and energy efficiency, as well as new formulas and commercial initiatives—and to actively manage contracts, focusing on growth. Saba invested €36 million in 2016, of which 18% was for expansion.
(*) With capital gains from divestment and contribution from logistics assets.
(**) EBITDA proforma: operating profit + depreciation allowance +/− variation due to impairment of assets.
In October 2016 Saba signed a final agreement with Merlin Properties for the sale of Saba Parques Logísticos, a company that held the titles or shares of five logistics parks, for a total of €115 million. The transaction included the assets of Cim Vallès (Barcelona) and Lisboa Norte in Portugal, as well as shares in Parc Logístic de la Zona Franca (Barcelona), Sevisur (ZAL Puerto de Sevilla) and Arasur (Álava).
The sale of Saba Parques Logísticos forms part of the company’s strategic plan to restructure its assets and reinforces the growth and internationalization strategy pursued by Saba in recent years. With this transaction, Saba brought to a close a period in which it has carried out four successive divestment operations, which total €300 million in shareholders’ equity, thus maximising the value of the line of business and facilitating important operations such as those of Adif, Bamsa and (in Portugal) CPE, thus also strengthening Saba’s capacity for growth in the car park business.
After several years successfully implementing efficiency measures focused on optimising and managing expenditure, the Group has set itself the new challenge of strengthening its traditional sources of income through a better knowledge of the customer, adapting products and service offerings to their needs and using technology as an instrument for doing so. The traditional policies of selective growth, based on profitability criteria and economic and legal certainty, as well as actions aimed at efficiently managing operations and technological innovation are the hallmarks of Saba, more so than ever before.
The financial structure of the Group seeks to limit the risks arising from uncertainty in financial markets, trying to minimise potential adverse effects on financial profitability. Throughout 2016, the company has continued to work in order to have the tools and flexibility needed to continue with its objective of growth and diversification. In this regard, the Group constantly assesses its financial structure and, in the same way, must be in a position to improve it at all times, depending on the market situation and its evolution. Saba’s total assets as of 31 December 2016 came to €1.428 billion. The company’s consolidated equity as of 31 December 2016 amounted to €562 million, while gross debt (countable financial debt without derivative liability) stood at €553 million with its net financial debt at €357 million.
(*) Countable financial debt, without derivative liability.
With regard to the distribution of debt, long-term debt represented more than 90% at year end 2016, while it would mature in 2021 on average. In order to minimise exposure to interest rate risks, Saba maintains a high percentage of debt at a fixed rate or at a rate fixed by hedging, approximately 56%. Therefore, it is estimated that any possible changes in interest rates would not have a significant impact on the company’s accounts. The Group’s weighted average interest rate at year-end 2016 was slightly above 4%.
Non-recourse debt
Fixed rate
As for risk management, the Group’s financial board has a policy in place to cover all significant exposure to risks (exchange rate, interest rate, credit and liquidity) as long as there are appropriate instruments and the cost of such protection is reasonable for the risks covered.
Regarding the exchange rate, Saba operates internationally and only owns assets in foreign currency in Chile. Therefore it is exposed to an exchange rate risk for operations in foreign currencies, especially the Chilean peso, as well as for investments made there. In this sense, a 10% variation in the euro/Chilean peso exchange rate as of close of business on 31 December 2016 would produce a minimal impact on the profit. The impact on equity due to differences in conversion resulting from the consolidation process was not significant.
Saba Infraestructuras has established a Risk Management Policy based on a methodology of identifying, analysing and evaluating the various business risks. Risk is understood as an event that could negatively impact on the fulfillment of the Group’s strategic objectives. The methodology followed distinguishes between inherent risks and residual risks based on the impact and possibility of their occurrence. The combination of all risks is categorised according to different previously defined types, establishing in turn a degree of prioritisation, management mechanisms and action plans aimed at reducing the various risks to an acceptable level.
Among the risks it has detected as inherent and a priority are:
As of 31 December 2016, Saba Infraestructuras maintains a capital of 739,037,783 ordinary shares of a single class and series, registered in book entries, of €0.10 par value each, which are fully subscribed and paid up. The Board of Directors is authorised to acquire derivatives on the company’s own shares, as well as the right of first refusal. However, as of year end, the company has none of its own shares in treasury stock.
Currently Saba has around 3,500 shareholders, which represent 1.2% of the shareholding structure. The Shareholder Office is at the service of the shareholders to assist them in all matters that may be of interest to them.
During 2016, all the shareholders’ questions were answered, with responses given within a maximum period of 48 hours. The suggestions received were forwarded to the Financial Board.
The Shareholder Office responded to nearly 237 queries in 2016, managed with a clear focus on service quality. Half of these queries were regarding the purchase and sale of shares and 25% were requests for information during the various general meetings of shareholders.
Queries responded to by the
Office
www.saba.eu
accionistas@saba.eu
+34 93 557 55 28
