EUR 200.00 For Business Accounts Only

ACS: VIRTUAL CORPORATE ACCESS WITH THE COMPANY (ANÁLISIS BANCO SABADELL)

From our virtual roadshow yesterday with the Company, we highlight the following points related to the potential impact of the Covid-19 crisis on ACS: (i) they do not see liquidity problems ( € ~8 Bn in cash and € ~6 Bn of credit lines unutilized), (ii) they still have little visibility on the economic impact of the crisis, although they would expect an even greater negative impact on working capital than the impact on P&L and (iii) in principle, the payment of the complementary dividend is expected'19 ( and that of Abertis) this year, next year dividend will depend on how the macroeconomic scenario had evolved and the impact of the crisis on ACS. Lastly, it should be mentioned that today in the press it is published that the Company has included in its annual accounts a mention of the possible impact of Covid-19, where it states that no consequence has been produced, and those will depend on the evolution and extent of the pandemic in the coming months. These impacts, in any case, could be mitigated with the different contractual mechanisms available in each case. Furthermore, ACS comments that it has a financial situation to face these contingencies.
We positively value the messages released regarding liquidity and the payment of dividends, although we are not surprised either. As for the economic impact, the messages today are still very qualitative and provisional, and they also do not show anything that we could not be anticipating. However, we would highlight that the impact of the crisis on working capital may be one of the keys to this exercise since, although today the visibility is still very limited, we would expect a significant worsening of it. The Company accumulates –51% (-20% vs. IBEX) in the year, which, even in a negative scenario, would leave us a potential above 35%.