April 2015 A LEADING TECH COMPANY

Transcription

1 April 2015 A LEADING TECH COMPANY

2 This presentation has been produced by Indra for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or any advice or recommendation with respect to such securities. Its content is purely for information purposes and the statement it contains may reflect certain forward-looking statements, expectations and forecasts about the Company at the time of its elaboration. These expectations and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and other important factors beyond the control of the Company that could result in final results materially differing from those contained in these statements. The Company does not assume any obligation or liability in connection with the accuracy if the mentioned estimations and is not obliged to update or revise them. This document contains information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information. This disclaimer should be taken into consideration by all the individuals or entities to whom this document is targeted and by those who consider that they have to make decisions or issue opinions related to securities issued by Indra. A LEADING TECH COMPANY 2

3 INDEX Who we are FY14 Performance A LEADING TECH COMPANY 3

4 WHO WE ARE INDRA: GLOBAL FOOTPRINT A technology company providing real time, smart, efficient solutions and services to clients all around the world 2.9bn revenues in 2014 Solutions 64% Services 36% 39,000 employees Local presence in 46 countries 23 Software Labs Projects in 149 countries A LEADING TECH COMPANY 4

5 WHO WE ARE IN A BROAD RANGE OF VERTICALS Transport & Traffic Security & Defense Energy & Industry Public Administrations & Healthcare Financial Services Telecom & Media as % of Sales 21% 17% 16% 18% 17% 11% Air Traffic Air Defense Customer Management Taxes & Justice Core Banking Networks & Communications Key Solutions Railways, Mass Rapid Transit & Buses Border Control Network Management (Smart Grid) Voting Core insurance Social Media Intelligent Traffic Systems & Smart Mobility Simulation Plant Management & Energy Markets Healthcare epayments Digital Platforms Services Application Management BPO IT Outsourcing as % of Solutions A LEADING TECH COMPANY 5

6 WHO WE ARE AN INTERNATIONAL DIVERSIFIED COMPANY Spain 39% 27% Latam 21% 13% Asia, Middle East & Africa Europe & USA 40% of total revenues in emerging markets 45% of workforce in 46 international subsidiaries Figures as of 2014 A LEADING TECH COMPANY 6

7 WHO WE ARE CONSOLIDATING GLOBAL PRESENCE 68% 66% 64% Spanish revenues as % of total Indra 61% 57% 57% 61% 61% 32% 34% 36% 39% 43% 43% 39% 39% International Revenues as % of total Indra % CAGR since beginning of the crisis International Revenues A LEADING TECH COMPANY 7

8 WHO WE ARE SPAIN BREAKS EVEN AFTER FOUR YEARS OF DECLINING REVENUES 7% 3% -3% -3% 7% -10% -1% -1% -9% -26% -18% -23% -11% 6% 2% Public clients Spanish market growth rate Corporate clients vs % Public % % Corporates % % Public Spain as % of Indra s Total Revenues 40% 16% A LEADING TECH COMPANY 8

9 WHO WE ARE WITH STRONG GROWTH IN LATAM Latam revenues growth since 2007 % of total Latam Figures in M 804 Brazil 36% Mexico 22% x Others 11% Argentina 9% Chile 5% Peru 5% Colombia 12% 10% growth in Latam (local currency) in % of total employees (~14,400) located in Latam A LEADING TECH COMPANY 9

10 WHO WE ARE AS WELL AS IN AMEA AMEA revenues growth since 2007 % of total AMEA Figures in M Africa 17% 375 Asia 37% 4.3x 86 Middle East 46% Revenue growth of 23% CAGR since % of total employees (~1,500) located in AMEA A LEADING TECH COMPANY 10

11 WHO WE ARE BUILDING NEARSHORE AND OFFSHORE PRODUCTION AND DELIVERY CAPABILITIES Latam 14,388 professionals Spain 21,461 professionals A significant part dedicated to export business 55% 37% Local presence in 14 countries Personnel breakdown 4% 5% Asia, Middle East & Africa 1,493 professionals Europe & North America 1,788 professionals >39,000 professionals running the business with overall utilization capacity of 95% + c.3,500 subcontractors providing operational flexibility worldwide A LEADING TECH COMPANY 11

12 WHO WE ARE MARGIN PRESSURE REMAINS IN BOTH SERVICES AND SOLUTIONS, DRIVING RECURRENT EBIT MARGIN DOWN 7.4% 16.0% 14.3% 11.2% 6.9% Solutions Services Total Overheads 2014 Contribution Margin Indra EBIT Margin Recurrent A LEADING TECH COMPANY 12

13 ,0% 9,0% 8,0% 7,0% 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% 0,0% WHO WE ARE FOCUSED INVESTMENTS TO TAKE ADVANTAGE OF THE DEMAND FOR SOLUTIONS Net Intangible (R&D) CAPEX evolution (1) Main areas of investment 69 Smart Grid & Customer Management Solutions for Utilities Surveillance and Sensoring Healthcare 1,6% 2,0% 2,1% 2,6% 1,7% 1,6% 1,4% Core Banking & Insurance Systems Net Intangible Capex ( M) Net Intangible Capex / Sales Remotely Piloted Aircraft (1) Intangible Capex net of subsidies ( M) A LEADING TECH COMPANY 13

14 WHO WE ARE DEBT STRUCTURE ( M) December 2014 December 2013 Total % of total Total % of total L/T Debt % % S/T Debt % % Gross Debt % % Cash & Others 294 n.m. 363 n.m. Net Debt 663 n.m. 622 n.m. Cost of Net Debt 4.5% 4.8% Gross Debt Maturity Profile (dec-14) Available Facilities Maturities (dec-14) ( M) 777 ( M) 1,320 Available Facilities Net Debt 49 Cash Credit Facilities A LEADING TECH COMPANY 14

15 WHO WE ARE SHAREHOLDERS (April 2015) Others 20.1% Sociedad % as of Estatal de Share Participaciones Capital Industriales S.E.P.I (*) 51.5% 11.3% Corporación Financiera Alba (*) 10.7% 3.2% 3.2% Fidelity Group Telefónica, S.A. Taube Hodson Stonex Partners (THS) (*) Board of Directors representation CNMV data. Identified shareholders with a position in excess of 3% A LEADING TECH COMPANY 15

16 WHO WE ARE DIVIDEND TRACK RECORD 1,2 1 55% 55% 55% 55% 59% 5.3% 62% 6.9% 42% 48% 60% 50% 0,8 0, % 2.7% 3.7% 4.0% 3.4% 2.8% 40% 30% 0,4 Dividends 0,2 paid on % 10% % Ordinary Dividend Extraordinary Dividend Pay-Out Dividend Yield Dividend accommodated to free cash flow generation, setting a floor in 2013 Dividend yield calculated on Dec 31 st of previous year; Pay-out calculated on previous FY results A LEADING TECH COMPANY 16

17 INDEX Who we are FY14 Performance A LEADING TECH COMPANY 17

18 FY14 PERFORMANCE KEY MESSAGES FOR 2014 Revenues grew +5% in local currency, increasing in all verticals Spanish revenues flat, after four years declining Backlog totaled 3,473m, with double digit growth rates in order intake in AMEA and Latam Recurrent operating margin reaches 6.9%, despite ongoing pressures Free cash flow generation of 47m Net profit of - 92m, as a result of provisions, impairments and non recurring items from changes in estimates for a gross amount of 313m in projects, intangibles, goodwill and tax credits. Recurrent Net Income at 104m At the end of June, the company will organize an Investor s Day to outline its strategic lines, operating plans and medium term financial indications A LEADING TECH COMPANY 18

19 FY14 PERFORMANCE MAIN HEADLINES FY14 Variation Local currency / reported FY13 Order Intake ( M) 3,013 +4% / -1% 3,029 Revenues ( M) 2,938 +5% / +1% 2,914 EBIT margin Recurrent (1) 6.9% -0.9 pp 7.8% Net profit Recurrent ( M) % 138 Net profit Reported ( M) % 116 NWC (DoS) 106 / 81 (2) Free Cash Flow (3) Net Debt ( M) % 622 (1) Before non recurrent items of 246m (2) After non recurrent items (3) 52m once accounted for the divestment of services business A LEADING TECH COMPANY 19

20 FY14 PERFORMANCE BOTH SERVICES AND SOLUTIONS GREW MID SINGLE DIGIT IN LOCAL CURRENCY Revenues by Segment ( M) Book-to-Bill Local Currency / Reported 2,938 2,914 +5% / +1% 35% 36% 1,026 +7% / +2% 1, x 1.01x 1.08x 65% +4% / -0% 64% 0.94x 1,888 1, Solutions Services 33 A LEADING TECH COMPANY 20

21 FY14 PERFORMANCE SOLID ORDER INTAKE (+4%); REVENUES UP IN ALL GEOGRAPHIES Order intake ( M) Local Currency / Reported Revenues ( M) Local Currency / Reported Book-to-Bill Book-to-Bill +4% / -1% 1.0x 3,029 3, x 2,914 +5% / +1% 2,938 Spain 0.9x +0% / +0% 1,036 1, x 39% +2% / +2% 1,125 1,147 39% Latam 1.2x % / -2% x 29% +10% / -3% % EU/USA 1.0x -6% / -6% x 20% +7% / +6% % AMEA 1.2x +10% / +8% x 13% % / -2% % A LEADING TECH COMPANY 21

22 FY14 PERFORMANCE FOUR VERTICALS NOW UP IN SPAIN; ALL UP INTERNATIONALLY (IN LOCAL CURRENCY) Revenues by Vertical ( M) Local Currency / Reported 2,914 2,938 Spain Int. (LC) +5% / +1% Energy & Industry 17% % / -1% % Financial Services 16% % / +3% % Telecom & Media 12% % / -9% % PPAA & Healthcare 17% % / +5% % Transport & Traffic 21% % / +1% % Security & Defence 17% % / +3% % A LEADING TECH COMPANY 22

23 FY14 PERFORMANCE NON RECURRING ITEMS Concept ( M) Provisions, impairments and over-runs -231 Impairment of Goodwill -21 Impairment of Tax credit -19 Impairment of Intangible assets -19 Efficiency improvement costs -17 Other -6 Total before provisions reversal -313 Provisions reversal 48 Total after provisions reversal -265 A LEADING TECH COMPANY 23

24 FY14 PERFORMANCE NET WORKING CAPITAL Equivalent Days of Sales (DoS) Pre non recurring items Post non recurring items Accounts Receivable Accounts Payable Inventory A LEADING TECH COMPANY 24

25 FY14 PERFORMANCE RECEIVABLES (1) DoS REDUCED IN SPAIN, MAINLY ON PUBLIC CLIENTS Spain (2) STATE PPAA SPAIN REGIONAL PPAA LATAM PRIVATE EU/USA Latam (2) AMEA BRAZIL MEXICO REST OF LATAM (1) Clients + Unearned revenues Prepayments (2) DoS calculated according to the revenues of each category A LEADING TECH COMPANY 25

26 FY14 PERFORMANCE FREE CASH FLOW BRIDGE OPERATING CASH FLOW Net Working Capital Other Operating Changes Capex Taxes FREE CASH FLOW 26 A LEADING TECH COMPANY 26

27 FY14 PERFORMANCE NET DEBT BRIDGE Net Debt 2013 Free Cash Flow Financial Investments + Treasury Stocks Dividend Non-CF items Net Debt 2014 A LEADING TECH COMPANY 27

28 FY14 PERFORMANCE FCF GUIDANCE NOT ACHIEVED MAINLY DUE TO NWC AND PROFITABILITY FCF Guidance Net Working Capital EBIT Taxes Capex FCF 2014 A LEADING TECH COMPANY 28

29 FY14 PERFORMANCE P&L Variation 4Q14 4Q13 Variation M M M % M M M % Revenues 2, , Other income Materials consumed and other operating expenses (1,353.5) (1,333.0) (20.4) 2 (466.2) (425.4) (40.8) 10 Personnel expenses (1,405.5) (1,453.5) 48.0 (3) (349.3) (395.0) 45.7 (12) Other results (4.1) 75.5 (79.6) NA (2.3) 76.0 (78.3) NA Gross Operating Profit (recurrent EBITDA) (9.9) (4) (10.5) (14) Depreciations (64.2) (51.9) (12.3) 24 (15.5) (14.8) (0.6) 4 Recurrent Operating Profit (EBIT before non recurrent items) Recurrent EBIT margin (before non recurrent items) (22.3) (10) (11.1) (19) 6.9% 7.8% (0.9) % 7.5% (1.8) -- Non Recurrent Items (246.4) (27.9) (218.5) -- (230.5) (0.7) (229.8) -- Net Operating Profit (EBIT) (42.5) (240.8) (121) (182.3) 58.6 (240.9) (411) EBIT Margin -1.4% 6.8% (8.3) % 7.4% (28.8) -- Financial results (54.3) (64.0) 9.7 (15) (12.5) (14.7) 2.3 (15) Share of profits (losses) of associates and other (0.2) 12.4 (12.6) NA (4.4) 14.7 (19.1) NA investees Earnings Before Taxes (97.0) (243.7) (166) (199.2) 58.5 (257.7) (440) Income tax expenses 6.6 (30.0) 36.6 (122) 29.4 (9.3) 38.6 (418) Profit for the period (90.4) (207.1) (177) (169.8) 49.3 (219.1) (445) Attributable to minority interests (1.5) (0.9) (0.6) NA (0.6) (0.1) (0.5) NA Net Profit (91.9) (207.7) (179) (170.4) 49.2 (219.6) (446) Net Profit recurrent (33.8) (24) (37.2) (73) A LEADING TECH COMPANY 29

30 FY14 PERFORMANCE BALANCE SHEET Variation M M M Property, plant and equipment (16.8) Intangible assets Investments in associates and other investments Goodwill (22.7) Deferred tax assets Non-current assets 1, , Non-current net assets held for sale Operating current assets 1, ,059.8 (218.7) Other current assets (11.3) Cash and cash equivalents (69.2) Current assets 2, ,574.4 (299.1) TOTAL ASSETS 3, ,776.9 (295.7) Share Capital and Reserves ,125.2 (182.7) Treasury stock (1.6) (1.3) (0.4) Equity attributable to parent company ,124.0 (183.1) Minority interests TOTAL EQUITY ,134.7 (181.1) Provisions for liabilities and charges (58.9) Long term borrowings Other financial liabilities Deferred tax liabilities (14.3) Other non-current liabilities (5.0) Non-current liabilities (37.4) Current borrowings (64.8) Operating current liabilities 1, , Other current liabilities (13.8) Current liabilities 1, ,692.9 (77.1) TOTAL EQUITY AND LIABILITIES 3, ,776.9 (295.6) Net debt A LEADING TECH COMPANY 30

31 FY14 PERFORMANCE CASH FLOW STATEMENT Variation 4Q14 4Q13 Variation M M M M M M Profit before taxes (97.0) (243.7) (199.2) 58.5 (257.7) Adjusted for: - Depreciations Provisions, capital grants and others (9.6) (20.9) Share of profit / (losses) of associates and other investees 3.3 (0.7) (0.2) Net financial result (10.8) Dividends received (0.7) (1.0) Operating cash-flow prior to changes in working capital (29.7) (11.8) Receivables, net (45.0) 35.0 (80.0) (71.5) (43.6) (27.9) Inventories, net Payables, net 14.9 (70.4) Change in working capital 16.7 (34.6) (1.9) 51.7 Other operating changes (44.3) (28.0) (16.3) (6.8) 23.4 (30.2) Income taxes paid (52.6) (34.9) (17.7) (15.9) (2.8) (13.1) Cash-flow from operating activities (12.4) (3.4) Tangible, net (14.9) (9.9) (5.0) (2.8) (4.0) 1.3 Intangible, net (41.8) (46.3) 4.5 (12.4) (16.3) 3.9 Investments, net (12.9) (14.1) (9.1) Interest received Net cash-flow provided/(used) by investing activities (64.7) (65.9) 1.2 (10.7) (7.1) (3.6) Changes in treasury stock (6.9) (2.5) (4.4) Dividends of subsidiaries paid to minority interests (0.2) (0.2) (0.0) (0.2) (0.2) (0.0) Dividends of the parent company (55.6) (55.8) Short term financial investment variation 2.2 (1.5) (1.8) 3.2 Increases (repayment) in capital grants Increase (decrease) in borrowings (44.3) (363.5) (48.8) (200.5) Interest paid (46.2) (51.6) 5.4 (16.3) (12.6) (3.7) Cash-flow provided/(used) by financing activities (145.7) (356.7) (59.2) (197.9) NET CHANGE IN CASH AND CASH EQUIVALENTS (70.6) (367.8) (204.9) Cash & cash equivalents at the beginning of the period Foreign exchange differences 1.4 (4.0) (0.8) 1.2 Net change in cash and cash equivalents (70.6) (367.8) (204.9) Cash & cash equivalents at the end of the period (69.2) (69.2) Long term and current borrowings (956.6) (985.5) 28.9 (956.6) (985.5) 28.9 Net debt/ (cash) position Free Cash Flow (1) ) Free cash flow is defined as cash generated before dividend payment, net financial investments and similar payments, and investment in treasury stock A LEADING TECH COMPANY 31

32 Investor Relations Avda. de Bruselas Alcobendas, Madrid Spain T F