IMPEL GROUP. Financial results for Q Management s Presentation. 13 November 2014

Transcription

1 IMPEL GROUP Financial results for Q Management s Presentation 13 November 2014

2 1.Results for Q Impel Group 3.Questions and answers 2

3 COMMENT ON THE RESULTS FOR Q Major tendencies and events related to the results for Q : High growth rate of revenue from sales, despite the operation of negative factors on the security services market. Two-digit increase in EBIT (10.1%); improved result based on non-recurrent events for the total of PLN 5.4 million. Facility Management EBIT margin of the segment at the level of 6%. Security further activities aimed at improvements in the segment efficiency. Favourable changes in the legal environment amendment to the Act Public Procurement Law. PLN million Q Q Change Revenue from sales 1 148, ,8 8,2% Operating expenses 1 138, ,9 8,1% Subsidies* 32,2 26,4-18,0% EBIT 39,8 43,8 10,1% EBITDA 71,0 75,9 6,9% Net profit 20,2 23,7 17,3% EBIT margin 3,5% 3,5% 0,0 pp EBITDA margin 6,2% 6,1% 0,1 pp *Changes in the legal regulations consisted in a decrease in the rates of subsidies from PFRON (State Fund for the Rehabilitation of the Disabled) of 25% for disability groups II andiiiandof 33%for disability groupi,effectivefrom 1April

4 FACTORS INFLUENCING THE RESULTS FOR Q PLN million Q Q Change Revenue from sales 1 148, ,8 8,2% Subsidies 32,2 26,4-18,0% EBITDA 71,0 75,9 6,9% EBITDA margin 6,2% 6,1% EBIT 39,8 43,8 10,1% EBIT margin 3,5% 3,5% 1,7% Amortisation/Depreciation (31,2) (32,2) 3,2% Net profit 20,2 23,7 17,3% Consequences of changes in legislation reduction in subsidies by 18% y/y. EBIT Q includes: profit on sale of real property +PLN 3.5 million, sale of shares in the companies operating in the Arabian Peninsula + PLN 1.9 million Comparable EBIT after excluding non-recurrent events: Q Q Assets 788,7 845,0 7,1% Equity and reserves 269,1 286,4 6,4% Net debt 185,4 199,6 7,7% Settlement of the acquisition of Impel Cash Solutions (former Brinks) profit on the bargain acquisition of the company (badwill) reduced by the provision for restructuring costs, IFRS 3 +PLN 1.7 million. 4

5 RESULTS FOR Q : OPERATING AND FINANCIAL EXPENSES PLN million Q Q Change Operating expenses, including: 1 138, ,9 8,1% Amortisation/Depreciation 31,2 32,2 3,2% Consumption of materials and energy 122,9 134,6 9,5% Third-party services 461,4 508,9 10,3% Salaries, social security contributions and other staff related expenses 466,7 478,7 2,6% Financial expenses, including: 12,7 12,7 0,0% Interest 9,7 8,8-9,3% Increase in operating expenses: In Q they totalled 8.1% and were lower by 0.01% than the revenue growth rate. Increase in expenses incurred on thirdparty services: The increase in expenses incurred on third-party services results from the adoption of the policy of using thirdparty subcontractors to a greater extent. Decrease in interest expenses: Despite a decrease in interest expenses, financial expenses remained at the level similar to that recorded in the previous year. It resulted from foreign exchange losses on account of borrowings in Impel Griffin Group Sp z o.o., caused by a fall in the exchange rate of UAH. 5

6 COMPARISON OF QUARTERLY OPERATING RESULTS Increase in EBIT- typical Q3 for the specific nature of the Impel Group s business PLN million Q1 Q2 Q3 Q4 Y Q1 Q2 Q3 Q4 Y Q1 Q2 Q3 Revenue from sales 333,3 355,7 358,2 369, ,7 350,6 391,8 405,7 411, ,8 394,7 416,5 431,6 Subsidies 7,6 8,5 8,8 10,3 35,0 11,1 11,9 9,2 8,7 40,8 9,4 8,2 8,9 EBITDA 16,8 23,0 28,5 8,4 76,8 21,0 21,5 28,4 13,0 84,0 18,5 25,1 32,3 EBITDA margin 5,0% 6,5% 7,9% 2,3% 5,4% 5,9% 5,5% 7,0% 3,1% 5,4% 4,7% 6,0% 7,5% EBIT 8,2 14,0 19,6-1,4 40,5 11,3 10,7 17,7 1,9 41,7 7,7 14,3 21,8 EBIT margin 2,5% 3,9% 5,5% -0,4% 2,9% 3,2% 2,7% 4,2% 0,5% 2,7% 2,0% 3,4% 5,0% 6

7 GROUP S CONSOLIDATED FINANCIAL RESULTS SEGMENTS PLN million Q Total Q change Facility Management* Q Q change Q Security Q change 94,8 98,6-4,0 Revenue from sales 1 148, ,0 789,4 888,0 359,0 355,0 8,3% 12,5% -1,1% Business segment s results 43,0 48,3 39,6 53,0 3,4-4,7 Segment s EBIT margin 3,7% 3,9% 5,0% 6,0% 0,9% -1,3% Facility Management: Improvement in EBIT margin earned in the Facility Management segment. Increase in revenue from sales, including the following product lines: Business Partner (temporary work), Facility Management (technical maintenance of facilities) and Investments and Development (implementation of the contract concluded by Climbex S.A. on the cleaning of industrial installations of PERN Przyjaźń ). Security: Drop in revenue generated by the segment, resulting from the fierce competition devastating the market, the withdrawal from a part of low-margin contracts and the selective approach to new contracts. Electronic Surveillance System the stage of implementing the system was concluded (30 Sept 2014), about 4.4 thousand convicts were migrated (the target system capacity is 15 thousand prisoners), the stage was refunded by the Ministry of Justice (except for the expenditure incurred on the purchase of hardware to monitor convicts and elements of equipment for the teams used, for example, to evaluate the conditions of the convict s whereabouts; PLN 6 million), at present, expenses incurred by Impel Security Polska Sp. z o.o. total PLN 1.61 million; impact on EBIT +PLN 0.7 million. * Revenue from sales in the segment together with revenue generated by other companies; revenue from sales in the Facility Management segment PLN million, revenue from salesin othercompanies PLN26.8million 7

8 1.Results for Q Impel Group 3.Questions and answers 8

9 LEGAL ENVIRONMENT AMENDMENT TO THE ACT - PUBLIC PROCUREMENT LAW creates a limited possibility of valorisation of contracts in the public procurement sector, to take account of unexpected changes in the law (VAT rates, minimum wages determined on the basis of separate regulations as well as rules governing the applicability of social insurance or health insurance or amounts of social or health insurance contributions); requirement of hiring people on the basis of a contract of employment, if such contracts are appropriate for the nature of the job, by the contractors implementing public procurement contracts; restricted application of the lowest-bid criterion The amendment of the Act became effective on 17 October implementing the economically most advantageous bid criterion. AMENDMENT TO THE ACT ON THE SOCIAL INSURANCE SYSTEM payment of contributions (pension and disability pension contributions) on account of commission contracts, payable for at least the amount equal to the minimum wages the contribution is collected on account of one contract (whose value is equal to or higher than the minimum wages) or several contracts (whose aggregate value is equal to or higher than the minimum wages); possibility of terminating long-term public procurement contracts if no agreement is reached between the parties with regard to an increase in remuneration on account of higher expenses incurred on social insurance. The amendment will come into effect in January

10 IMPEL GROUP MISSION, VISION, STRATEGY MISSION: We take care of our clients. Our common success depends on that. VISION: Our objective is to develop our company in a responsible manner. Our operations are characterised by partnership, mutual honesty, respect for business environment and support for creativity. STRATEGIC PRIORITIES FOR THE YEARS : Development of profitable sales. Expansion to the foreign markets, also by granting the franchise for services provided the Impel Group companies. Strengthening of the Impel Group s competitive advantage by implementing innovative solutions for our clients. Synergies between the Business Units of the Impel Group. misja, wizja, strategia 10

11 IMPEL GROUP COMPETITIVE ADVANTAGES, THREATS, OPPORTUNITIES COMPETITIVE ADVANTAGES: Strong position on the Polish outsourcing market achieved during the 24 years of operation. Flexibility with regard to the changing legislative conditions. Effective cross-selling. OPPORTUNITIES: Further development of the Facility Management segment by searching for new clients for its services. Participation in the market consolidation, particularly in the Security segment. Development of the Security segment towards the use and implementation of advanced technologies. Selective acquisitions of competitive entities. Development of innovative IT services. Amendment to the Act Public Procurement Law- including, among others, the possibility of renegotiating contract prices in the case of unexpected changes in some macroeconomic factors (social insurance, etc.), the elimination of the lowest-bid criterion. THREATS: Further changes in legislation concerning the subsidised employment of the disabled. Continued price competition in the Security segment. 11

12 SEGMENTS POSITION ON THE MARKET FOR SERVICES* UPC TON CAT Impel 18,5% 17% SPIE 2,6% Sodexo 9,0% ISS Facility 3,4% Dalkia 2,4% Grupa Ever Clar System Dozorbud 2,1% 1,5% 1,2% Impel Cofey 1,3% 2,3% 2,0% Eurest Impel 2,0% 2,0% 3,0% LOG REN + PR BEZP Lyreco 7,0% Berendsen Brendesel 8,0% Konsalnet ** 10,8% Merida 4,0% CWS Boco 7,0% Solid 10,7% Henry Kruse 3,0% Impel 3,0% 3,0% Impel Securitas 3,5% 6,9% 6,5% Impel 1,0% 1,0% Bardush 1,0% Juwentus 2,9% UPC cleaning services; TON technical maintenance of facilities; CAT catering food preparation and delivery; Position of the service in 2013 LOG - delivery logistics, purchases and customer service; REN+PR rental services (rental and service) of clothes and linen and laundry services; BEZP manned guarding and electronic security systems; * According to the data from MarketCo Sp. z o.o. ** Revenue of Konsalnet after consolidation with G4S 12

13 IMPEL GROUP COMPANY S STRUCTURE, MANAGEMENT BOARD, SHAREHOLDERS Company s structure: Impel Facility Management Bezpieczeństwo Security Other Spółki pozostałe companies companies spółki (66% przychodów) of revenue) companies spółek (30% przychodów) of revenue) companies spółek (1% (1% przychodów) of revenue) Composition of the Management Board of Impel S.A.: GRZEGORZ DZIK President of the Management Board WOJCIECH REMBIKOWSKI Vice President responsible for Finance DANUTA CZAJKA Vice President responsible for Development finance 4,1% 14,2% 2,2% 11,7% 38,8% Shareholders: 29,0% Biegaj, Józef Dzik, Grzegorz OFE PZU "Złota Jesień" Pozostałe Other OFE OFE Fundusze Investment inwestycyjne funds Free float (indirectly) (directly and indirectly) 13

14 1.Results for Q Impel Group 3.Questions and answers 14

15 THANK YOU FOR YOUR ATTENTION 15