GRAÑA Y MONTERO. Corporate Presentation

Transcription

1 GRAÑA Y MONTERO Corporate Presentation First Quarter 217

2 Business highlights

3 Grupo Graña y Montero at a glance Largest Engineering & Construction company in Peru measured by revenues 83 years of recognized operational excellence and significant international experience High corporate governance standards Revenues of US$ 437 MM (S/. 1,418 MM) and EBITDA of US$ 91 MM (S/. 296 MM) in 1Q217 Backlog and recurrent business of US$3,532 MM as of March x revenues 3,664 engineers and over 28, employees Listed in the NYSE since July 213 Shareholders March 217 AFPs (*) 11.3% Others 16.6% Internal Shareholders Internal Shareholders 32.1% (*) Includes only AFPs holdings reported at CAVALI (Peruvian clearing house) GH Holding Group (Jose Graña, former Chairman): 17.8% Bethel Enterprises Inc. (Carlos Montero, Director): 5.1% Byron Development (Mario Alvarado, former Director and former CEO): 3.4% Hernando Graña (former Director): 2.4% ADSs Program 4.% Other Executives and former Executives: 3.5% Corporate Presentation 1Q216 Corporate Presentation 1Q217 1

4 Our Business Segments Largest E&C company in Peru Leading infrastructure concessionaire in Peru Largest apartment building developer in Peru Leader in infrastructure O&M and complementary services LTM217 Revenues by business segment LTM217 EBITDA by business segment LTM217 Net Income by business segment US$ 437 MM (S/. 1,418 MM) Corporate Presentation 1Q216 Corporate Presentation 1Q217 US$ 91 MM (S/. 296 MM) US$ 24 MM (S/. 79 MM) 2

5 Engineering and Construction Main companies: GyM: Construction company, founded in 1933, comprised of three divisions: electromechanic construction, civil construction and building construction. Stracon GyM: GyM subsidiary since 211, specialized in mining services. GMI: Engineering consulting firm since 1984 consisting in two different divisions: Supervision & Engineering and Geomatics. Vial y Vives- DSD S.A.: E&C company formed from a merger between two Chilean companies, Vial y Vives and DSD Construcciones y Montajes. Morelco S.A.: Colombian company acquired in 214, specialized in electromechanical assemblies, civil works, and services for the oil and gas industry as well as energy industry. Relevant Facts: February 28, 217: STRACON GyM sold 8.69% of its participation in Red Eagle Mining Corporation for US$ 11.5 MM. GyM: The main contracts awarded during the first quarter are: the assembly of Toquepala s Wet Area and Hotel Intursa. Revenues and EBITDA (S/. in millions) 6, 5, ,36 5, 4, 4, ,731 3, , 1, 1, Q216 1Q217 Revenues EBITDA Millares Corporate Presentation 1Q216 Corporate Presentation 1Q217 3

6 Infrastructure Main companies: Norvial: Concessionaire of Red Vial 5 Highway Survial: Concessionaire of 1st Tranche of the Interoceanic Highway Concesión Canchaque: Concessionaire of the Bs As-Canchaque Highway Concesionaria La Chira: Concessionaire for the construction, operation and maintenance of a waste water treatment plant for Lima Ferrovías GyM: Concessionaire of Line 1 of the Lima Metro GMP: Oil production (Blocks I, III, IV and V), gas processing plant and operation of ten fuel terminals in Peru Concesionaria Via Expresa Sur: Concession to build, maintain, and operate a 4.6km extension of one of the main highways in Lima COGA(*): Company responsible for the operation and maintenance of the transportation system of Transpotadora de Gas del Perú (TgP) Chavimochic: Concession to build the water infrastructure of the third stage of the Project Revenues and EBITDA (S/. in millions) 1,1 1, Q216 1Q Millares Revenues EBITDA (*) On April 24, 217, we sold the totality of our participation in COGA for US$ 21.5 MM. Corporate Presentation 1Q216 Corporate Presentation 1Q217 4

7 Real Estate Main companies: Revenues and EBITDA Viva GyM: Real estate development company (S/. in millions) Almonte: Subsidiary of Viva GyM and owner of a 8 Ha. of undeveloped land, located 3 Kms to the south of Lima (Lurín) Affordable Housing Projects under execution: Parques del Callao, Parque Comas, Parques de Huancayo (Provinces) Housing Projects under execution: Edificio Klimt (San Isidro) Commercial Real Estate projects under execution: Real Dos (offices) Q216 1Q Millares Relevant Facts: Revenues EBITDA February 3, 217: Cuartel San Martin was sold for US$ 5 MM February 24, 217: PRINSUR was sold for US$ 25 MM Q216 1Q217 Units delivered 1, Units sold 1, Corporate Presentation 1Q216 Corporate Presentation 1Q217 5

8 Technical Services Main companies: GMD: Provider of IT services and business solutions through four divisions: (i) Systems Integration, (ii) IT Outsourcing, (iii) Application Outsourcing, (iv) Business Processes Outsourcing. Concar: Operation and maintenance of infrastructure assets. It currently operates more than 5,km of Peruvian roads and highways, including three private concessions, in addition to the Lima Metro. CAM: provides field and specialized electrical services in Chile as well as in Brazil, Colombia, and Peru. Adexus: Provider of IT services with presence in Peru, Ecuador, Argentina and Colombia Relevant Facts: The main projects awarded during the first quarter 217 are: ENAP, through Adexus, in Chile and EMP, through CAM, in Colombia Revenues and EBITDA (S/. in millions) 1,6 1,4 1,2 1, ,419 1,169 1,28 1, Q216 1Q217 Revenues EBITDA Millares Corporate Presentation 1Q216 Corporate Presentation 1Q217 6

9 Financial Performance Financial Performance Corporate Presentation 9

10 Consolidated Results (S/. in millions) Consolidated Revenues Consolidated Net Profit (S/. in millions) 5,968 7,9 7,832 6,55 1,433 1,418 (S/. in millions) Consolidated EBITDA (S/. in millions) Q216 1Q Q216 1Q217 Consolidated Margins % over Total Revenues 25% 2% 17.3% 2.9% 1, % 1% 5% 16.8% 13.6% 13.% 5.4% 4.3% 13.3% 1.1% 1.7% 1.6% 1.% 9.% 4.9% 14.9% 5.6% Q216 1Q % 1.1%.1% Q216 1Q217 Net Margin Gross Margin EBITDA Margin Corporate Presentation 1Q216 Corporate Presentation 1Q217 8

11 Investments Investments (US$ in thousands) 385, , , ,324 68,166 18, Q216 1Q217 (US$ in thousands) Q216 1Q217 Engineering & Construction 73,59 162,245 36,393 32,157 1, Infrastructure 169,198 75,879 72,476 42,1 1,18 1,158 Real Estate 27,75 39,961 12,12 14, Technical Services 13,43 4,441 19,314 17,72 2,687 8,558 Holding 9,686 66, , ,553 54,94 56 Total 292, , , ,324 68,166 18,99 Corporate Presentation 1Q216 Corporate Presentation 1Q217 9

12 Financial Debt Maturity of Gross Debt 1Q217 (S/. in thousands) Less than Between 1 Between 2 More than 1 year and 2 years and 5 years 5 years Total Other loans 1,32, , ,593 2,1,666 Leasing 11,13 72,899 25,415 15,73 215,3 Ferrovías & Norvial Bond Issue 46,656 34,681 82,63 799, ,961 Total 1,18, , , ,697 3,18,657 CHUBB Debt 17,573 17,573 Total debt S/. 1,35, , , ,697 3,351,23 Total debt US$ 415,749 24,12 16, ,61 1,31,465 Debt by Business Area 1Q217 Debt by Currency 1Q217 Holding 25% Engineering & Construction 25% Real Estate 7% Technical Services 7% Infrastructure 36% Corporate Presentation 1Q216 Corporate Presentation 1Q217 1

13 Composition of Indebtedness Financial Debt (US$ thousands) 1Q216 2Q216 3Q216 4Q216 1Q217 Working Capital + Leasing 427, , , , ,45 Project Finance 321,33 323,33 337, , ,576 Financing associated to GSP 115, , , , ,344 Total 864, ,618 88, , ,965 CHUBB Debt 52,5 52,5 Total Debt 864, ,618 88,753 1,48,981 1,31,465 EBITDA LTM 1Q216 2Q216 3Q216 4Q216 1Q217 E&C + Real Estate + Technical Services 141, ,33 169,16 115, ,274 Infrastructure 91,556 82,567 82,291 8,872 84,882 Total 232,694 23,87 251,37 196,39 23,157 Ratios 1Q216 2Q216 3Q216 4Q216 1Q217 Debt/Ebitda (E&C + Real Estate + Technical Services) Debt/Ebitda (Infrastructure) Consolidated Debt/Ebitda Corporate Presentation 1Q216 Corporate Presentation 1Q217 11

14 Backlog and Recurrent Businesses Total Backlog + Recurrent Businesses in MM US$ By segments 4,329 4,345 4,486 3,83 3,532 5, 3. 4,5 4, ,5 3, 2, By type of contract 2, 1,5 3,935 3,765 4,38 3,137 2, , Q217 Backlog Recurrent Businesses Backlog + Recurrent Businesses / Revenues Ratio. Corporate Presentation 1Q216 Corporate Presentation 1Q217 12

15 Backlog and Recurrent Businesses (March 216 March 217) By type of client By end-market 6% 3% 24% 9% 15% Private 23% 7% 3% 14% 2% 1% 24% 22% Mining Projects Mining Services Oil and Gas Electricity 12% 76% 64% Public Concessions 11% 9% % 13% 38% 24% Water and Sewage Real Estate Transport Others Construction/Non-Construction By country 26% 13% 1% 1% 2% Peru 4% 11% 6% Chile Colombia 6% 74% Non Construction Construction 82% 75% Others (Panama, Bolivia, etc.) (*) Outer circle corresponds to March 217 data, whilst inner circle corresponds to March 216 data Corporate Presentation 1Q216 Corporate Presentation 1Q217 13

16 Backlog and Recurrent Businesses (US$ in thousand) Company Initial Backlog Executed New Requests Annual Backlog Backlog Total Backlog TOTAL 1Q GyM 854,271 88,6 83,673 83, , , ,143 52,81 STRACON GYM 82,246 6,447 29,1 29,1 788, ,8 156, ,961 VyV DSD 45,673 14, ,724 31,724 MORELCO 199,871 16,871 1,964 1, ,964 54,619 84,936 54,49 CAM PERU 496 2,936 2,439 2,439 GMI 57,338 11,446 6,479 6,479 52,371 28,18 19,691 4,5 ENGINEERING & CONSTRUCTION 1,977, ,57 33,838 33,838 1,749,55 672, ,99 55,671 SURVIAL 4,819 2,67 12,14 12,14 26,612 6,126 8,924 11,563 CANCHAQUE 16, ,95 6,95 8,775 1,99 2,988 3,797 LA CHIRA 2, ,426 1,426 4,79 8 1,13 2,149 LINEA 1 METRO DE LIMA 24,696 19,116 36,838 36, ,417 54,183 79, ,973 INFRASTRUCTURE 3,716 22,52 19,219 19, ,883 63,99 92,33 142,482 VIVA GYM 95,852 67,69 55,578 55,578 83,739 76,827 5,262 1,65 REAL ESTATE 95,852 67,69 55,578 55,578 83,739 76,827 5,262 1,65 GMD 125,732 21,842 2,792 2, ,681 53,351 4,531 3,799 ADEXUS 72,64 18,118 31,274 31,274 85,759 36,857 21,598 27,34 CONCAR 218,243 15,571 15,126 15, ,798 79,872 53,97 84,829 CAM 441,211 6,867 63,318 63, , , , ,52 TECHNICAL SERVICES 857,79 116,399 13,59 13,59 871,91 333, ,78 275,435 Eliminations 94,878 11,218 1,151 1,151 93,811 19,794 32,673 41,344 TOTAL 3,137, ,43 161, ,316 2,99,262 1,126, ,58 928,893 Recurrent Businesses Company Initial Executed New Requests Annual Total TOTAL 1Q GMP 474,49 31,974 7,742 7, ,259 18,38 167, ,826 NORVIAL 243,627 1,355 97,739 97, ,533 31,769 44,584 59,18 Eliminations 25,313 4,796 3,737 3,737 26,372 6,291 8,872 11,29 TOTAL 692,84 47,124 23,259 23, ,42 133,787 22, ,797 TOTAL 3,83,18 436, ,57 138,57 3,531,682 1,26,647 1,56,345 1,214,69 Corporate Presentation 1Q216 Corporate Presentation 1Q217 14

17 What s Ahead? Corporate Presentation 17 1

18 Stock Performance GRAM April 28, 217 ADSs (million) 132. Market Cap (US$ MM) VWAP (3M) (US$) week high (US$) week low (US$) 2.16 Average daily traded volume (3M) (US$ MM) 1.8 GRAMON April 28, 217 Shares (million) 66.1 Market Cap (S/. MM) 1,445.5 VWAP (3M) (S/.) week high (S/.) week low (S/.) 1.45 Average daily traded volume (3M) (S/. MM) 1.3 S/. 6. S/. 5. S/. 4. S/. 3. S/. 2. Closing Price 28abr17: GRAM: US$ 3.37 GRAMON: S/ $1. $9. $8. $7. $6. $5. $4. $3. S/. 1. $2. 1 abr 16 1 may 16 1 jun 16 1 jul 16 1 ago 16 1 sep 16 1 oct 16 1 nov 16 1 dic 16 1 ene 17 1 feb 17 1 mar 17 1 abr 17 GRAMON GRAM Corporate Presentation 1Q216 Corporate Presentation 1Q217 16

19 15 Unsaved Document / 12/11/212 / 14:8 Appendix Appendix

20 Vision and strategic goals 1 Focus our business in Engineering & Construction 2 Design and implement a new business model for Engineering & Construction 3 Design and implement a Risk and Compliance Management Program with clear policies and procedures, with particular emphasis on association policies 4 Disciplined approach to capital and debt reduction 5 Reaffirm our corporate values throughout the organization and foster an accountability culture To be recognized as the most reliable engineering services and infrastructure group in Latin America Corporate Presentation 1Q216 Corporate Presentation 1Q217 18

21 Corporate Structure 89.41% 67.% 99.54% (1) 89.31% Engineering services Toll-road concession Real Estate development IT services 98.24% 99.99% 5.45% 73.16% Construction services Toll-road concession Land parcels Electricity networks services Engineering and construction services in Chile 86.22% Toll-road concession 99.96% IT services 91.3% 87.59% 99.98% Mining services Highway concession 7.% 75.% Engineering and Construction services for Oil&Gas industry in Colombia Mass transit system concession 5.% Water plant concession 95.% O&G production, gas processing & fuel storage (1) 36.1% of the share capital in Viva GyM is held by our subsidiary GyM. Corporate Presentation 1Q216 Corporate Presentation 1Q217 Operation and maintenance of infrastructure assets 99.81% 19

22 Consolidated Results Income Statement (Thousands of Soles) Q216 1Q217 Revenues 5,967,5 7,8,68 7,832,433 6,55,286 1,433,48 1,418,364 GROSS PROFIT 1,4, ,568 72,85 639, , ,173 General Expenses (361,792) (421,367) (413,38) (463,974) (94,135) 96,916 Other Operational Expenses 25,32 15,136 57,287 48,94 6, Profit from sale of investment 5,722 (8,289) 3,357 31,667 25,768 OPERATIONAL INCOME 673, , , ,871 87,368 14,774 Financial Expenses (42,31) (47,72) (55,844) (129,128) (22,421) 43,126 Participation in Associates 33,562 53,445 17,63 (1,349) 21,515 5,482 Exchange rate difference (7,418) (44,282) (82,851) (9,147) 8,455 24,647 PRETAX INCOME 594,467 57, , ,247 94, ,777 Taxes (182,323) (146,196) (75,619) (43,585) (13,94) 39,683 Minority Interests (92,128) (61,489) (53,558) (63,57) (1,13) 8,971 NET INCOME 32,16 299,743 88,154 8,65 7,874 79,123 EBITDA 1,29,7 911, , ,52 19, ,217 Balance Sheet (Thousands of Soles) Q216 1Q217 Total Assets 6,316,158 7,73,681 8,991,811 9,53,872 8,995,381 9,475,364 Cas h 959, ,42 554,2 621,16 588,1 521,43 Gross Financial Debt 795,822 1,751,579 2,575,447 2,97,65 2,877,775 3,18,657 Total Equity 3,196,695 3,173,77 3,183,45 3,124,656 3,198,976 3,173,46 Financial Ratios Q216 1Q217 Corporate Presentation 1Q216 Corporate Presentation 1Q217 Gross Margin 16.8% 13.6% 9.% 1.6% 1.% 14.9% Operating Margin 11.3% 7.8% 4.3% 4.2% 6.1% 9.9% Net Margin 5.4% 4.3% 1.1%.1% 4.9% 5.6% Adjusted EBITDA Margin 17.3% 13.1% 1.% 1.7% 13.3% 2.9% Financial Debt /Adjusted EBITDA Financial Debt /Equity ROE 12.9% 11.4% 4.5% 2.3% 5.3%.4% 2

23 Results by Business Area 1Q217 Financial Results (Thousands of Soles) Engineering & Construction Infrastructure Real Estate Technical Services Revenues 684, , , ,179 GROSS PROFIT 52,613 5,965 86,476 4,88 General Expenses (51,844) (9,895) (4,851) (36,387) Other Operational Expenses 1,62 (693) (145) 218 Profit from sale of investment 25,768 OPERATIONAL INCOME 28,158 4,378 81,48 4,711 Financial Expenses (9,78) (3,55) (4,45) (8,327) Participation in Associates 2, Exchange rate difference 12, (3,869) 1,513 PRETAX INCOME 52,631 38,6 73,566 (1,979) Taxes (13,183) (1,97) (19,46) (41) Minority Interests (3,248) (6,559) (19,745) 619 NET INCOME 36,2 2,477 34,361 (1,761) EBITDA 76,62 62,744 82,912 26,14 ADJUSTED EBITDA 77, ,849 Financial Ratios Gross Margin 7.7% 24.1% 39.3% 1.8% Operating Margin 4.1% 19.1% 37.% 1.2% Net Margin 5.3% 9.7% 15.6%.5% Adjusted EBITDA Margin 11.2% 29.7% 37.7% 6.9% Financial Debt 784,486 1,132, , ,81 Financial Debt /Adjusted EBITDA ROE 3.7% 11.1% 2.4% 9.4% Corporate Presentation 1Q216 Corporate Presentation 1Q217 21

24 Workforce Workforce December 213 December 214 December 215 December 216 March 217 Employees 13,19 15,841 14,76 17,591 17,558 Manual Laborers (1) 12,759 24,259 11,26 8,493 1,63 Joint Operations Employees (2) 7,31 6,662 3,317 1,995 2,727 Subcontracted (3) 4,758 5,257 3,857 4,434 5,13 Total 37,927 52,19 32,96 32,513 35,361 6, 5, 4, 3, 2, 1, December 213 December 214 December 215 December 216 March 217 Employees Manual Laborers (1) Joint Operations Employees (2) Subcontracted (3) (1) The number of manual laborers, who form part of our network of approximately 38, manual laborers, varies in relation to the number and size of projects we have in process at any particular time. (2) Includes engineers, professionals, technical specialists and manual laborers employed by our joint operations. (3) Occasionally, we employ subcontractors for particular aspects of our projects, such as carpenters, specialists in elevator installation and specialists in glassworks. We are not dependent upon any particular subcontractor or group of subcontractors. Corporate Presentation 1Q216 Corporate Presentation 1Q217 22

25 Corporate Governance Graña y Montero (GRAMONC1) is listed in the Lima Stock Exchange since 1997 and in the NYSE since July 213 (GRAM) GRAMONC1 is included in the Corporate Governance Index of the Lima Stock Exchange Directorio New Chief Executive Officer, Luis Diaz Olivero, appointed in the Board of Directors meeting on February 27, 217. Change of 7 of the 9 board members on March 31, 217 (independent majority) Modification of the General Regulations of the Board of Directors and creation of the Committee on Risks, Compliance and Sustainability, composed of a majority of external and independent directors The (I) Audit and Process Committees and (II) Human Board Management Committees are composed exclusively of independent external directors The (III) Investment Committee is comprised of a majority of independent external directors. Four Operational Committees with at least two independent external directors within their members. Most of the Subsidiaries of the Group have at least one (1) external director in their Board of Directors. Non Independent External Directors Augusto Baertl Montori Roberto Abusada Salah (*) Carlos Montero Graña Alfonso García Miró Peschiera (*) Pursuant to USA regulations. Independent External Directors Rafael Venegas Vidaurre Pedro Pablo Errazuriz Dominguez Alfonso de Orbegoso Baraybar Manuel del Río Jimenez José Antonio Rosas Dulanto Corporate Presentation 1Q216 Corporate Presentation 1Q217 23

26 Disclaimer Forward-looking statements This presentation contains forward-looking statements. Forward-looking statements convey our current expectations or forecasts of future events. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from the forward-looking statements that we make. Forward-looking statements typically are identified by words or phrases such as may, will, expect, anticipate, aim, estimate, intend, project, plan, believe, potential, continue, is/are likely to, or other similar expressions. Any or all of our forward-looking statements in this presentation may turn out to be inaccurate. Our actual results could differ materially from those contained in forward-looking statements due to a number of factors, including, among others: global macroeconomic conditions, including commodity prices, and economic, political and social conditions in the markets in which we operate, particularly in Peru; major changes in Peruvian government policies at the national, regional or municipal levels, including in connection with infrastructure concessions, investments in infrastructure and affordable housing subsidies; social conflicts in Peru that disrupt infrastructure projects, particularly in the mining sector; interest rate fluctuations, inflation and devaluation or appreciation of the nuevo sol in relation to the U.S. dollar (or other currencies in which we receive revenue); our ability to continue to grow our operations, both in Peru and internationally; the level of capital investments and financings available for infrastructure projects of the types that we perform, both in the private and public sectors; competition in our markets, both from local and international companies; our ability to complete acquisitions on favorable terms or at all and to integrate acquired businesses and manage them effectively post-acquisition; performance under contracts, where a failure to meet schedules, cost estimates or performance targets on a timely basis could result in reduced profit margins or losses and impact our reputation; developments, some of which may be beyond our control, that affect our reputation in our markets, including a deterioration in our safety record; industry-specific operational risks, such as operator errors, mechanical failures and other accidents; availability and costs of energy, raw materials, equipment and labor; our ability to obtain financing on favorable terms; our ability to attract and retain qualified personnel; our ability to enter into joint operations, and rules involved in operating under joint operation or similar arrangements; our exposure to potential liability claims and contract disputes, including as a result of environmental damage alleged to have been caused by our operations; our and our clients compliance with environmental, health and safety laws and regulations, and changes in government policies and regulations in the countries in which we operate; negotiations of claims with our clients of cost and schedule variances and change orders on major projects; volatility in global prices of oil and gas; the cyclical nature of some of our business segments; limitations on our ability to operate our concessions profitably, including changes in traffic patterns, and limitations on our ability to obtain new concessions; our ability to accurately estimate the costs of our projects; changes in real estate market prices, customer demand, preference and purchasing power, and financing availability and terms; our ability to obtain zoning and other license requirements for our real estate development; changes in tax laws; natural disasters, severe weather or other events that may adversely impact our business; and certain other factors disclosed in our registration statement on Form F-1 on file with the SEC. The forward-looking statements in this presentation represent our expectations and forecasts as of the date of this presentation. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this presentation. In light of the risks and uncertainties described above, the future events and circumstances discussed in this presentation might not occur and are not guarantees of future performance. Corporate Presentation 1Q216 Corporate Presentation 1Q217 24

27 Contacts: Mónica Miloslavich Chief Financial Officer (511) Adriana Caballero Investor Relations (511) Belén Masson Investor Relations Assistant (511) ext Corporate Presentation 1Q216