GRAÑA Y MONTERO. Corporate Presentation

Transcription

1 GRAÑA Y MONTERO First Quarter 2015

2 Business highlights

3 Grupo Graña y Montero at a glance Largest Engineering & Construction company in Peru measured by revenues 82 years of recognized operational excellence and significant international experience Undisputed reputation, reliability and highest corporate governance standards Revenues of US$2.3bn and EBITDA of US$306mm in 2014 Backlog and recurrent business of US$4.3bn as of December x revenues 4,200 engineers and over 49,000 employees Listed in the NYSE since July 2013 Shareholders April 2015 AFPs (*) 12.4% Others 17.3% Internal Shareholders Internal Shareholders 32.0% (*) Includes only AFPs holdings reported at CAVALI (Peruvian clearing house) GH Holding Group (Jose Graña, Chairman): 17.8% Bethel Enterprises Inc. (Carlos Montero, Director): 5.1% Byron Development (Mario Alvarado, Director and CEO): 3.4% Hernando Graña (Director): 2.3% ADSs Program, 38.3% Other executives and former executives: 3.4% 3

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 LTM2015 Revenues by business segment LTM2015 EBITDA by business segment LTM2015 Net Income by business segment Technical Services 16% Real Estate 3% Engineering & Construction 69% Technical Services 9% Real Estate Real Estate 8% Engineering & 4% Engineering & Construction Construction 49% 57% Infrastructure 12% Infrastructure 40% Infrastructure 34% US$ 2,321mm US$ 277mm US$ 80mm (S/. 7,189mm) (S/. 859mm) (S/. 246mm) 4

5 Engineering and Construction Main companies: Revenues and EBITDA GyM: Construction company, founded in 1933, comprised of three divisions: electromechanic construction, civil construction and building construction. Stracon GyM: GyM subsidiary since 2011, 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, which are companies we acquired in 2012 and 2013, respectively. Morelco S.A.: Colombian company acquired in 2014, specialized in electromechanical assemblies, civil works, and services for the oil and gas industry as well as energy industry. 1,800 1,600 1,400 1,200 1, (US$ in millions) 1,685 1,382 1,457 1, Relevant Facts: We have presented a proposal in order to develop the civil works for the Talara Refinery Modernization Project Revenues EBITDA 5

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 Revenues and EBITDA (US$ in millions) Concesionaria La Chira: Concession 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 Relevant Facts: Lima Metro Bond Issuance for S/. 629 MM in February Block III and Block IV contracts in Talara: started operations in April 4 Private Initiatives presented in 2014 have been declared of relevance 14 new Private Initiatives have been presented in February Talara Refinery: - 4 additional proposals presented for the Refinery expansion s related projects Revenues EBITDA 6

7 Real Estate Main companies: Viva GyM: Real estate development company Almonte: Subsidiary of Viva GyM and owner of a 800 Ha. of undeveloped land, located 30 Kms to the south of Lima (Lurín) Affordable Housing Projects under execution: Parques del Callao, Parques de San Martin de Porres, Parques de Villa El Salvador II, Parques de Carabayllo II, Parque Comas, Parques Naranjal Parques de Piura, Parques de Nuevo Chimbote, Chiclayo Bolognesi (Provinces) Housing Projects under execution: Pezet (San Isidro), El Sol 451 (Barranco) Commercial Real Estate projects under execution: Real Ocho (San Isidro), Real Dos, Rivera Navarrete, Panorama (offices) Revenues and EBITDA (US$ in millions) Revenues EBITDA Units delivered 1,244 1,368 1, Units sold 1,368 2,017 1,

8 Technical Services Main companies: Revenues and EBITDA 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 5,000km 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. Relevant Facts: GMD subscribed a MoU for the acquisition of 44% of Adexus S.A. for US$ 15MM with presence in Chile, Peru, Ecuador, Argentina and Colombia (US$ in millions) Revenues EBITDA

9 Financial Performance Financial Performance 9

10 Consolidated Results (US$ in millions) Consolidated Revenues (US$ in millions) Consolidated Net Profit (US$ in millions) 1,573 2,051 2,134 2, Consolidated EBITDA (US$ in millions) Consolidated Margins % over Total Revenues 17.3% % 15.3% 16.8% 14.9% 13.6% 6.8% 5.5% 5.4% 13.1% 13.6% 4.3% 14.4% 4.7% 14.9% 10.2% 9.5% % Net Margin Gross Margin EBITDA Margin 10

11 Investments Investments (US$ in thousand) Investments by Business Area 1Q2015 As a percentage $352,293 $292,421 $385,477 Real Estate 2% Technical Services 14% Engineering & Construction 27% $183,050 $31, Q2015 Infrastructure 57% (US$ in thousands) Q2015 Engineering & Construction 22,879 68, ,503 73, ,245 8,702 Infrastructure 4,941 44, , ,198 75,879 18,328 Real Estate 44,184 27,281 50,298 27,075 39, Technical Services 47,151 40,334 15,593 13,403 40,441 4,554 Others 5,758 2,563 4,564 9,686 66, , , , , ,477 31,383 11

12 Financial Debt Consolidated Gross Debt (US$ in thousand) Maturity of Gross Debt 1Q2015 Cash 244, , , , ,087 00,000 00, , ,000 00, , , ,729 00,000 00, , , , Q Less than Between 1 Between 2 More than Total 1 year and 2 years and 5 years 5 years Other loans 1,098,852 84,622 34,528-1,218,002 Leasing 106, ,847 86,140 15, ,051 Ferrovías Bond Issue 26,631 21,428 42, , ,621 Total debt S/. 1,231, , , ,657 2,154,674 Total debt US$ 397,784 71,649 52, , ,729 Financial Debt Financial Debt/EBITDA Debt by Business Area 1Q2015 Type of Debt 1Q2015 Currency 1Q2015 % Infrastructure 43% Real Estate 8% Engineering & Construction 43% Project Financing 48% Working Capital 42% US Dollars 37% Others 5% Nuevos Soles 57% Technical Services 6% Leasings 10% 12

13 Backlog and Recurrent Businesses By segments (US$ in millions) 5,000 4,000 4, ,395 4, , Real Estate 2% Technical Services 13% Engineering & Construction 56% 2, Infrastructure 29% 3, ,000 4,166 3,935 3,815 3, By type of contract 1,000 2,494 Unit Prices 47% Cost plus Fee 38% Q Recurrent Businesses Backlog Backlog + Rec. Businesses/ Revenues Ratio Lump Sum 12% EPC 4% 13

14 Backlog and Recurrent Businesses (March 2014 March 2015) By type of client By end-market 21% 15% 2% 9% Mining Projects 3% 4% 17% 79% 76% Private Public Concessions 6% 4% 16% 7% 4% 16% 2% 19% 8% 16% 28% 28% Mining Services Oil and Gas Electricity Water and Sewage Real Estate Transport Others 20% Construction/Non-Construction By country 9% 1% 1% 2% 64% 64% 36% 36% Non-Construction Construction 14% 11% 2% 3% 1% Perú Chile Colombia Panamá Brasil and Guyana Bolivia and Ecuador 83% 73% (*) Outer circle corresponds to March 2015 data, whilst inner circle corresponds to March 2014 data 14

15 Backlog and Recurrent Businesses (US$ in thousand) Company Initial Backlog Executed Backlog New Requests Backlog Total Annual Backlog TOTAL IQ GyM 975, ,936 50,133 50, , , , ,781 Stracon GyM 1,211,972 88,006 3,222 3,222 1,127, , , ,430 Vial y Vives 254,909 52,697 45,883 45, , ,744 83, Morelco 349,091 32,274-8,484-8, , ,563 59,473 91,298 CAM Perú 49,839 10,065 6,567 6,567 46,341 20,737 15,385 10,219 GMI 43,956 14,159 11,053 11,053 40,850 27,149 13,702 0 Engineering & Construction 2,885, , , ,373 2,570,389 1,162, , ,459 Survial 70,649 3, ,111 36,721 11,949 18,441 Canchaque 15, ,415 9,402 2,672 3,340 La Chira 15,157 4, ,498 8,014 1,147 1,338 Linea 1 Metro de Lima 210,086 16,363 12,221 12, ,944 48,582 68,609 88,752 Infrastructure 311,645 25,027 12,350 12, , ,719 84, ,871 Viva GyM 81,362 7,676 29,495 29, ,181 52,904 21,496 28,780 Real Estate 81,362 7,676 29,495 29, ,181 52,904 21,496 28,780 GMD 91,830 18,804 19,520 19,520 92,546 34,095 30,767 27,684 Concar 153,782 17,599 26,663 26, ,846 77,561 40,026 45,259 CAM 400,674 42,061-35,565-35, , , , ,268 Technical Services 646,285 78,463 10,618 10, , , , ,211 Eliminations -109,158-14,960 4,452 4,452-89,745-34,201-24,685-30,859 Total Backlog 3,815, , , ,288 3,461,232 1,498,658 1,005, ,462 Recurrent Businesses GMP 496,655 23,389-53,997-53, , , , ,458 Norvial 110,727 16,679 13,244 13, ,292 24,998 34,991 47,303 Eliminations -27,379-9,533-8,619-8,619-26,464-5,622-9,263-11,579 Total Recurrent Businesses 580,003 30,535-49,372-49, , , , ,182 Total Backlog + Recurrent Businesses 4,395, , , ,917 3,961,329 1,634,078 1,165,607 1,161,644 15

16 What s Ahead? 16

17 Infrastructure Pipeline Infrastructure Investment Gap in Peru Proinversión Project Portfolio (*) Project Location Status Estimated Investment (US$ MM) Estimated award date Toll Roads Energy 37% Telecommunications 22% Mountain Range Longitudinal Road 4 Mountain Range Longitudinal Road 5 Junin, Apurimac, Huancavelica, Ayacucho, Ica To be contested Q15 Cusco and Puno Not contested To be defined 2016 Rail ~US$ 88 bn investment gap Huancayo-Huancavelica Railway Lima Not contested To be defined 4Q15 Line 3 Lima Metro Lima Not contested To be defined 3Q16 Health and Education 1% Water treatment and sewage 6% Hidraulic Infrastructure 10% Transportation 24% Oil and Gas LPG Supply System for Lima and Callao Lima and Ica Contested Q15 Electricity Quillabamba Termical Station Cusco Contested Q15 Water treatment Headworks and Water Supply Infrastructure for Lima Junin and Lima Contested Q15 Logistics Pltaforms Logistics zone and outer harbor for Callao Port Callao Contested To be defined 3Q15 Source: Peruvian Association for the Promotion of National Infrastructure (AFIN), Proinversión (*) Table only reflects most relevant projects that we are evaluating 17

18 Infrastructure Pipeline Private Initiatives presented in 2014 Infrastructure projects Water and Sewage 4 projects US$ 1.3 billion Flowchart of the process of approval Submitted and awaiting reply from Proinversión Proinversión Roads 2 projects US$ 1.7 billion Admissible Proinversión Innovation & Technology 6 projects US$ 0.6 billion Services 2 projects TOTAL Private Initiatives presented in 2015 Water and Sewage 4 projects Infrastructure projects US$ 0.8 billion ~ US$ 4.4 billion US$ 1.0 billion Roads 3 projects US$ 2.8 billion 4 PIs have been declared of relevance for ~US$ 1 billion Declaration of relevance and priority Development of preinvestment studies Declaration of viability under SNIP MEF Proinversión/ MEF MEF Minimum Time Frame: 18 months Innovation & Technology 4 projects US$ 0.1 billion Declaration of interest Management of Investment Promotion Services & Installations 3 projects US$ 0.4 billion TOTAL ~ US$ 4.3 billion Selection Process and contract is signed 90 days for others to present propposals 18

19 Stock Performance GRAM- May 28, 2015 ADSs (million) Market Cap (US$ MM) 1.01 VWAP (3M) (US$) week high (US$) week low (US$) 7.38 Average daily traded volume (3M) (US$ MM) 1.07 GRAMON May 28, 2015 Shares (million) Market Cap (S/. MM) 3.16 VWAP (3M) (S/.) week high (S/.) week low (S/.) 4.61 Average daily traded volume (3M) (S/. MM) 3.37 S/ S/ S/ S/ S/ S/ S/ S/ Closing Price 28May15: GRAM: US$ 7.68 GRAMON: S/ S/ May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 $20.00 $19.00 $18.00 $17.00 $16.00 $15.00 $14.00 $13.00 $12.00 $11.00 $10.00 $9.00 $8.00 $7.00 $6.00 GRAMONC1 GRAM US 19

20 Unsaved Document / 12/11/2012 / 14:08 Appendix Appendix 15

21 Vision and strategic goals 1 Expand our Infrastructure businesses 2 Maintain and reinforce our position as the leading contractor for complex projects in Peru and other key markets 3 Continue growing by exporting our capabilities 4 Disciplined approach to capital 5 Continue fostering our corporate values throughout the organization To be recognized as the most reliable engineering services and infrastructure group in Latin America 21

22 Corporate Structure 98.23% 67.0% 98.1% (1) 88.7% Construction services Toll-road concession Real Estate development IT services Contract mining services 87.64% Toll-road concession 99.9% 99.9% Land parcels 50.4% 99.6% Operation and maintenance of infrastructure assets 80.4% Toll-road concession 75.0% Engineering and Construction services in Chile 89.4% Mass transit system concession 75.0% Electricity networks services Engineering services 70.0% Water plant concession 50.0% Engineering and Construction services for Oil&Gas industry in Colombia O&G production, gas processing & fuel storage 95.0% Highway concession 100.0% Operation and maintenance of gas pipelines 51.0% (1) 38.97% of the share capital in Viva GyM is held by our subsidiary GyM. 22

23 Consolidated Results (S/. in millions) Consolidated Revenues (S/. in millions) Consolidated Net Profit (S/. in millions) 4,241 5,232 7, ,503 1,522 1, Consolidated EBITDA (S/. in millions) Consolidated Margins % over Total Revenues 17.3% , % 15.3% 16.8% 14.9% 13.6% 6.8% 5.5% 5.4% 13.1% 13.6% 4.3% 14.4% 4.7% 14.9% 10.2% 9.5% % Net Margin Gross Margin EBITDA Margin 23

24 Consolidated Results Income Statement (Thousands US$) Revenues 1,572,587 2,050,915 2,134,233 2,344, , ,877 Gross Profit 234, , , ,357 80,879 56,013 Operating Profit 180, , , ,448 47,855 19,552 Financial expenses (2,977) (12,331) (15,451) (15,749) (3,657) (4,939) Participation in Associates ,924 - Dividends Perceived ,004 17,881 2,177 4,844 Exchange rate difference 696 8,281 (25,185) (14,815) (4,972) (5,881) Profit before income tax 177, , , ,765 43,868 13,576 Income tax (52,446) (60,594) (65,247) (48,911) (14,181) (4,545) Minority Interests (17,472) (29,909) (32,980) 120,854 (4,378) (3,354) Net Profit 107, , , ,282 25,309 5,677 Depreciation & Amortization 66,090 95,846 92,682 86,999 21,282 22,012 EBITDA 250, , , ,195 77,874 52,426 Balance Sheet (Thousands of US$) Total Assets 1,369,568 1,957,125 2,257,824 2,586,116 2,303,365 2,597,058 Cash 244, , , , , ,087 Financial Debt 196, , , , , ,729 Total Equity 538, ,547 1,143,362 1,063,875 1,119, ,220 Financial Keys Gross Margin 14.9% 13.6% 16.8% 13.6% 14.9% 10.2% Net Margin 6.8% 5.5% 5.4% 4.3% 4.7% 1.0% EBITDA Margin 15.9% 15.3% 17.3% 13.1% 14.4% 9.5% Financial Debt /EBITDA Financial Debt /Equity ROE 23.1% 20.6% 12.9% 10.7% 11.9% 9.6% 24

25 Workforce Total number of employees Since 2011 Total workforce 9,641 11,399 13,770 15,841 16,033 Categories March 2015 Engineers 4,282 Other professionals 2,018 Technical specialists 9,733 Total Employees 16,033 Manual laborers (1) 22,602 Joint operations employees (2) 5,353 Subtotal 43,988 Subcontracted employees (3) 5,073 Total Collaborators 49, Q2015 (1) The number of manual laborers, who form part of our network of approximately 40,000 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. 25

26 Corporate Governance Internal Directors External Directors Independent Directors Graña y Montero (GRAMONC1) is listed in the Lima Stock Exchange since 1997 and in the NYSE since July 2013 (GRAM) GRAMONC1 is included in the Corporate Governance Index of the Lima Stock Exchange Board of Directors The Corporate CEO is a Board Member The Board Committees are integrated mainly by External Directors Subsidiaries have at least one (1) External Board Member within their Boards Hernando Graña Acuña José Graña Miro Quesada Pedro Pablo Errazuriz Mario Alvarado Pflucker Carlos Montero Graña José Chlimper Ackerman Federico Cúneo de la Piedra Hugo Santa María Guzmán Mark Hoffmann Rosas Recognitions Member of the Companies Circle of the Latin American Corporate Governance Roundtable since October 2010 Winner of the Llave de la BVL in 2014, 2010 and 2009 Recognized by Euromoney as: Best managed Company in Latin America Overall Best managed Company in Peru Best Managed Company in the Construction & Cement Sector in Latin America Most transparent accounts 26

27 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. 27

28 Contacts: Dennis Gray Febres Corporate Finance and Investor Relations Officer (511) Samantha Ratcliffe Leiva Deputy Investor Relations Officer (511)