Results Amsterdam, 21 February 2018

Transcription

1 Results 2017 Amsterdam, 21 February 2018

2 BAM reports full year adjusted result before tax of 63.3 million Full year adjusted result margin at 1%; excluding previously announced loss at sea lock IJmuiden at 2% Construction and Property: improved margins due to prior restructuring in the Netherlands and Germany Civil engineering: loss mainly due to the Netherlands; partly offset by UK, Ireland and Germany PPP: strong performance from existing portfolio; 50% tender hit rate Increased order book; 84% of revenue in hand for 2018 Impairment of deferred tax assets triggered by underperformance in the Dutch fiscal entity Dividend per share proposal of 0.10 (2016: 0.09) with scrip alternative and buy-back to offset dilution 1

3 V&A Museum of Design Dundee BAM Construct UK 2

4 Residential tower B mine@overhoeks, Amsterdam (147 rental apartments) AM and BAM Wonen 3

5 Construction and Property (in million) Revenue Result NL UK BE GE IE INT NL UK BE GE IE INT Order book TWC efficiency NL UK BE GE IE INT Q Q2 Trade working capital Q-end Q Q2 Q % -5% -10% -15% Average TWC as % of 4-Q rolling revenue 4

6 Large scale city redevelopment (former Bijlmer prison), Amsterdam AM 5

7 Construction and Property (in million) Revenue Result NL UK BE GE IE INT NL UK BE GE IE INT Order book TWC efficiency NL UK BE GE IE INT Q Q2 Trade working capital Q-end Q Q2 Q % -5% -10% -15% Average TWC as % of 4-Q rolling revenue 6

8 Victory Boogie Woogie Tunnel, The Hague BAM Infra and Wayss & Freytag Ingenieurbau 7

9 3D printed bicycle bridge, Gemert (NL) BAM Infra 8

10 Civil engineering (in million) Revenue NL UK BE GE IE INT Result NL UK BE GE IE INT Order book TWC efficiency % -5% NL UK BE GE IE INT Q Q2 Trade working capital Q-end Q Q2 Q % Average TWC as % of 4-Q rolling revenue 9

11 Drogheda Courthouse BAM PPP and BAM Ireland 10

12 PPP (in million) Portfolio (number) Results Investment In operation Under construction Preferred bidder Adjusted result before book profits Book profits Injected equity Committed equity 11

13 Income statement (in million, unless stated otherwise) 2017 Margin 2016 Margin Total sectors % % Group overhead Group interest charge Adjusted result before tax % % Restructuring Impairments Pension one-off Result before tax Income tax Non-controlling interest Net result % % 12

14 Cash flow (in million, unless stated otherwise) Net cash result Investments (I)TFA Trade working capital Net investment Property 80-1 Net investment PPP 1 7 Other working capital Business cash flow Dividend -7-2 Restructuring Pensions (additional) Others Cash position

15 Financial position (in million, unless stated otherwise) Cash position Interest-bearing debt Net cash position Recourse net cash position Capital ratio 21.2% 19.7% Return on average capital employed 2.8% 2.8% 14

16 Museum of the Future, Dubai BAM International and BAM Ireland 15

17 Market conditions 16

18 Order book (in million, unless stated otherwise) Construction and Property 6,890 6,264 Civil engineering 4,693 3,950 PPP Eliminations and other Total sectors 11,600 10,200 17

19 Key priorities Pre-construction management Digitalisation IT standardisation Business controls 18

20 Outlook For the full year 2018, BAM expects an adjusted result before tax margin of around 2%. 19

21 Dividend 2017 BAM proposes a dividend of 10 euro cents per ordinary share. This equates to a payout ratio of 50% of net result after adjustment for the one-off, non operational and non cash impairment of the deferred tax asset. The dividend will be paid in cash, with a scrip alternative. BAM will repurchase and cancel shares to offset the dilution. 20

22 Annexes Updated strategy: Building the present, creating the future Property investments PPP investments Net cash analysis Revenue sector/country 21

23 Strategy Building the present, creating the future Focus project portfolio Shape business portfolio Create future portfolio Differentiating capabilities BAM s unique culture 22

24 Targets 2020 Profit People ROCE >10% Safety IF < 3.5 Adjusted pre tax margin 2-4% Property < 500m TWC < -10% Planet Net positive impact 23

25 Focusing project portfolio (1) Scale Expertise 24

26 Focusing project portfolio (2) Selection Stage gate Peer review Operational audit 25

27 Focusing project portfolio (3) Peer review Tender assessment Operational audit Stage gate 1 Stage gate 2 Stage gate 3 Stage gate 4 Stage gate 5 Categorisation Decision to tender Initial validation Decision to bid Approval final contract If won: Reality check PQQ Submitted/ Partnerships formed Tender documents received Tender submitted Contract awarded 26

28 Home markets Royal BAM Group nv Shape business portfolio Inside Fix or exit Develop new propositions along lifecycle Outside Stay out Leverage high-margin specialisms High Low Level of competition 27

29 Create future portfolio Digital construction process Digital built environment 28

30 Culture Culture Predictable performance Proactive ownership Profitable projects Selected segments Open collaboration Scalable Learning Execution Proposition Innovation Understanding 29 30

31 Capabilities Operating companies Group Project selection Project execution Synergies in selected specialisms Smart engineering + Talent development = Controls & and systems Best in industry digital exchange Financial strength BAM value 30

32 Property investments (in million) (in million, unless stated otherwise) Q Q Total investments (YE 2017) 600 Land and building rights Property development Total investments (a) Non-recourse loans Recourse loans Total loans (b) Property associates/jv/ahfs (c) Net investments (a) (b)+(c) NL UK BE IE Residential Non-residential 31 32

33 PPP investments (in million, unless stated otherwise) YE 2017 YE 2016 Invested equity 1) Committed equity 2) Total invested & committed equity Of which committed equity by PGGM Estimated unrealised value based on cash flows ) BAM share invested in equity of PPP contracts. 2) Excluding contracts in preferred bidder stage. 32

34 Net cash analysis (in million, unless stated otherwise) Q Q Non recourse PPP loans Non recourse project financing Other project financing Total project related Subordinated convertible bonds Financial lease liabilities 13 7 Bank overdrafts and other loans 5 5 Total interest-bearing debts Less: cash Net cash position

35 Trade working capital Trade working capital (in million) Trade working capital (in million and TWC as %) Q Q Work-in-progress credit Q Trade and other receivables Trade working capital Q Q Work-in-progress debit Trade and other payables Q Q Q2 Q Trade working capital Q-end Q2 Average TWC as % of 4-Q rolling revenue Q % -5% -10% -15% 34

36 Revenue sector/country (in million, unless stated otherwise) Construction and Property Civil engineering PPP Total Netherlands 19% 18% 0% 37% United Kingdom 16% 11% - 27% Belgium/Luxembourg 6% 4% 0% 10% Germany/Swiss 7% 7% 0% 14% Ireland 5% 2% 2% 9% International 1% 2% - 3% Total 54% 44% 2% 100% Revenue per sector/country 2017 as a percentage of gross total revenue

37 Contact details BAM Investor Relations Joost van Galen +31(0)