Royal BAM Group nv Annual results Analysts meeting Amsterdam, 7 March 2013

Transcription

1 Royal BAM Group nv Annual results 2012 Analysts meeting Amsterdam, 7 March 2013

2 BAM delivers forecast operational result in tough home markets 2012 net loss 187 million due to impairments in first half year (2011: profit 126 million); Operational profit before tax million (2011: 143 million) Results at Construction and M&E services and Civil engineering impacted by challenging conditions in our European home markets, in particular the Netherlands Trends in property development markets in line with BAM s adjusted assumptions set per H1 Solid performance and good bid pipeline at PPP Order book at 11.0 billion at end of 2012, up by 0.6 billion on year-end 2011 (+6%) Proposed dividend of 0.10 per share with stock alternative (2011: 0.16) Royal BAM Group Annual results

3 Operational sectors Challenging conditions in home markets, particularly in the Netherlands Margins impacted by reorganisation costs and competitive environment Construction and M&E services NL and DE lower activities; higher nonresidential in BE; UK stable Lower total order book; up in DE and BE but new NL residential orders fell significantly Civil engineering Revenue down in NL, UK and BE; stable in IE and up in DE BAM International grew strongly Higher order books in most countries Royal BAM Group Annual results

4 Investment sectors Property development NL market conditions worsened, in line with adjusted assumptions (per H1) Good performance in BE; book profit on UK commercial property sale Net reduction of total investments by 64 million Total finished properties, let and unlet, 172 million Invested capital at end Q4: Total investment 1,244 Total loans -493 Net investment 751 Public private partnerships Good profit performance Healthy tender pipeline Added three new contract to order book Transferred two contracts to BAM PPP PGGM joint venture Directors valuation of 330 million implies an estimated unrealised value of 96 million Invested capital at end Q4: Total investment 1,165 Total loans -1,049 Net investment 116 (in million) (in million) Royal BAM Group Annual results

5 Revenue and results per sector Revenue Result 1) Revenue Result 1) Construction and M&E Services 3, , Civil engineering 3, , Property PPP Eliminations and other Total sectors 7, , (in million) 1) Result before tax Royal BAM Group Annual results

6 Income statement 2012 margin 2011 margin Total result sectors % % Group overhead Group interest Operating activities % % Dredging Result before tax % % Impairment at Property Impairment goodwill Income tax Minority interest Net result from continuing activities Discontinued operations Net result (in million, unless stated otherwise) Royal BAM Group Annual results

7 Financial position Balance sheet total 6,664 7, Shareholders equity 922 1, Capital base 1,045 1, Capital ratio 15.7% 18.9% Cash 620 1, Interest-bearing debt 1,758 2, Net debt position 1,138 1, Recourse net debt Shareholders equity and capital base affected by impairments at H1, resulting in lower capital ratio Cash and Interest-bearing debt lower due to more efficient use of cash Working capital lower due to Property impairments Fixed assets 2,334 2, Working capital (excl. cash and st-debt) (in million, unless stated otherwise) Royal BAM Group Annual results

8 Property investments Land and building rights Property development Total investments (a) 1,244 1,492 Total investments: NL: 1,000 million UK: 135 million BE: 71 million EI: 38 million Non-recourse loans Recourse loans Total loans (b) Net investments (a) (b) (in million, unless stated otherwise) Royal BAM Group Annual results

9 Public private partnerships: portfolio Nominal value PPP assets (intangibles, receivables) 1,165 Non-recourse PPP loans -948 Recourse PPP loans (equity bridges) -101 Investment equity 1) 116 Committed equity 2) Discounted value Total invested & committed equity (A) Future equity cash inflows (B) 1, Estimated unrealised value (B) (A) 96 (in million, unless stated otherwise) 1) BAM share in equity of PPP contracts 2) Excluding contracts in preferred bidder stage Royal BAM Group Annual results

10 Breakdown of net debt position Non-recourse PPP loans Non-recourse project financing Other project financing Total project related 1,591 1, Subordinated loan Loan BAM Financial lease liabilities Bank overdrafts and other loans Total interest-bearing debts 1,758 2, Less: cash , Net debt position 1,138 1, Recourse net debt position (in million, unless stated otherwise) Royal BAM Group Annual results

11 Cash flow Recourse Nonrecourse Total Net cash/debt end ,234-1,178 Net cash result Sale Tebodin Net PPP Investment Net property investment Tangible fixed assets Operational working capital Dividend Pension (additional) Net cash/debt end ,292-1,138 (in million, unless stated otherwise) Net cash result is net result excluding depreciation, impairments, provisions and result sale Tebodin Cash flow from Property partly used for redemption of nonrecourse debt OWC increase mainly due to lower trade and other debt Additional pension payment relates to United Kingdom Royal BAM Group Annual results

12 Adoption of new accounting standards 31 December 2012 Pro forma IAS 19r Pro forma IFRS 11 Pro forma 1 January 2013 Non-current assets 2, ,711 Current assets 4, ,609 Total assets 6, ,233 5,320 Group equity Non-current liabilities 1, ,185 Current liabilities 3, ,403 Total equity and liabilities 6, ,233 5,320 Capital base 1, Capital ratio 15.7% 16.0% (in million, unless stated otherwise) Royal BAM Group Annual results

13 Enterprise Risk Management (ERM) In 2011, BAM set up a corporate risk management department to implement ERM The key challenge and opportunity is to embed ERM in the mindset and culture by strengthening values, practices and behaviour in the actual treatment of risk and improving the existing policies, procedures and systems Integrated thinking - reinforcing the Plan, Do, Check, Act cycle Learning from real-life problems to avoid future surprises Zero tolerance Business principles Laws and regulations Integrity Critical tolerance Access controls Projects Clients M&A Employees Subcontractors / partners Balanced tolerance Project management Capacity IT operations Knowledge management Best in class ERM supports BAM achieve its strategic goals for Royal BAM Group Annual results

14 Sustainability Incident Frequency (IF) CO2 emission (in kilotons) Construction and office waste (in kilotons) Main targets improved in 2012 BAM will report sustainability performance for 2012 in accordance with GRI 3.1 A+ Royal BAM Group Annual results

15 Dividend proposal 2012 BAM strives to distribute between 30 percent and 50 percent of net profit Based on a net loss in 2012, there would be no dividend Proposal to make an exception: Dividend proposal 0.10 per share in cash or in stock Dividend per ordinary share 0.10* 0.16 Pay-out ratio n/a 30% (in 1,-, unless stated otherwise) * Proposal Royal BAM Group Annual results

16 Order book Construction and M&E Services 4,423 4,456-1% Civil engineering 5,622 5, % Property 1,080 1,103-2% PPP % Eliminations and other ,154 Total sectors 11,000 10,400 +6% (in million) Order book up mainly due to Civil engineering (+11%) mainly in Germany, Ireland, the Netherlands and BAM International Royal BAM Group Annual results

17 Outlook Conditions in BAM s home markets will remain difficult in Although it is too early to give an outlook for the full year, at this stage BAM has no reason to expect that performance in 2013 will be significantly different from its operational performance for 2012 Royal BAM Group Annual results

18 NOTES: Royal BAM Group Annual results Royal BAM Group nv - Investor Relations - Patrick Snippe p.snippe@bamgroep.nl

19 Annexes: Property Netherlands Property development: categories BAM PPP Portfolio as at 31December 2012 Revenue and results per sector (4 th Quarter) Income statement (4 th Quarter) Banking convenants Royal BAM Group Annual results

20 Property Netherlands Number of home sold from own development: Q Q Q Q Total 1,906 2,230 Stock of unsold and unlet premises : homes under construction (number) homes finished (number) commercial property (m 2 ) 12,400 12,400* * adjusted Royal BAM Group Annual results

21 Property development: categories Land and building rights Property development Q Additions /usage 2012 Reclassify* Later (H1) Impairments Fewer & lower (H1) Q Total 1, ,244 (in million, unless stated otherwise) * Including 58 million as a result of reappraisal of obligations relating to land purchases Royal BAM Group Annual results

22 BAM PPP Portfolio as at 31December 2012 Royal BAM Group Annual results

23 Revenue and results per sector (4 th Quarter) 4Q Q 2011 Revenue Result 1) Revenue Result 1) Construction and M&E Services Civil engineering 1, , Property PPP Eliminations and other Total sectors 2, , (in million) 1) Result before tax Royal BAM Group Annual results

24 Income statement (4 th Quarter) 4Q12 margin 4Q11 margin Total result sectors % % Group overhead Group interest Operating activities % % Dredging Result before tax % % Impairment at Property Impairment goodwill Income tax Minority interest Net result from continuing activities % % Discontinued operations Net result % % (in million, unless stated otherwise) Royal BAM Group Annual results

25 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0-0,5-1,0-1,5 0,7 1,6 Recourse leverage ratio 0,8 1,2 1,3 1,5 1,4 0,9 0,5-0,2 0,4-0,1-0,9 8,0 7,0 6,0 5,0 4,0 3,0 Recourse interest coverage ratio 7,3 7,7 7,1 6,2 6,4 6,5 6,1 4,9 5,5 4,8 5,0 4,5 7,3 Recourse leverage Limit recourse leverage Recourse interest coverage Limit recourse interest coverage Current ratio Recourse solvency ratio 1,50 1,40 1,30 1,20 1,10 1,00 0,90 1,39 1,24 1,21 1,23 1,25 1,27 1,31 1,25 1,13 1,13 1,10 29,0% 27,0% 25,0% 23,0% 21,0% 19,0% 17,0% 15,0% 13,0% 20,4% 25,3% 25,2% 24,0% 24,9% 24,9%25,4% 26,4% 23,3% 23,8% 23,5% 22,9% 20,8% Current ratio Limit current ratio Recourse solvency Limit recourse solvency Royal BAM Group Annual results

26 NOTES: Royal BAM Group Annual results Royal BAM Group nv - Investor Relations - Patrick Snippe p.snippe@bamgroep.nl