FY2013 IFRS FINANCIAL RESULTS

Transcription

1 FY2013 IFRS FINANCIAL RESULTS

2 Disclaimer These preliminary materials and any accompanying oral presentation (together, the Materials ) have been prepared by MYTILINEOS Holdings SA (the Company ) and are intended solely for the information of the Recipient. The Materials are in draft form and the analyses and conclusions contained in the Materials are preliminary in nature and subject to further investigation and analysis. The Materials are not intended to provide any definitive advice or opinion of any kind and the Materials should not be relied on for any purpose. The Materials may not be reproduced, in whole or in part, nor summarised, excerpted from, quoted or otherwise publicly referred to, nor discussed with or disclosed to anyone else without the prior written consent of the Company. The Company has not verified any of the information provided to it for the purpose of preparing the Materials and no representation or warranty, express or implied, is made and no responsibility is or will be accepted by the Company as to or in relation to the accuracy, reliability or completeness of any such information. The conclusions contained in the Materials constitute the Company s preliminary views as of thedateof thematerials and arebased solelyon theinformation received by it up to thedatehereof. The information included in this document may be subject to change and the Company has no obligation to update any information given in this report. The Recipient will be solely responsible for conducting its own assessment of the information set out in the Materials and for the underlying business decision to effect any transaction recommended by, or arising out of, the Materials. The Company has not had made an independent evaluation or appraisal of the shares, assets or liabilities (contingent or otherwise) of the Company. All projections and forecasts in the Materials are preliminary illustrative exercises using the assumptions described herein, which assumptions may or may not prove to be correct. The actual outcome may be materially affected by changes in economic and other circumstances which cannot be foreseen. No representation or warranty is made that any estimate contained herein will be achieved. 2

3 AGENDA AGENDA FY2013 Results Highlights Summary Financial Results Business Units Performance Q&A 3 3

4 9M 2012 RESULTS HIGHLIGHTS 9M 2012 RESULTS HIGHLIGHTS FY2013 RESULTS HIGHLIGHTS MYTILINEOS GROUP Turnover: 1,403 m. Vs 1,454 m. Last Year. EBITDA: m. Vs m Last Year. Earnings after Tax & Minorities: 22.5 m Vs 19.1 m Last Year. Net Debt: 510 m. as of 31/12/2013 Vs 725 m on 31/12/2012. Equity: 1,098 m. METKA Turnover: 606 m Vs 548 m Last Year. EBITDA: m Vs 92.7 m Last Year. Earnings after Tax & Minorities: 91.7 m Vs 70.1 m Last Year. Backlog as of end of 2013 : 1.5 bn. Net Cash Position: 125 m. as of 31/12/2013 Vs 49 m. on 31/12/2012. High margins for an EPC Contractor (recurring EBITDA Margin 16.8%). Source: Company Information figures have been revised according to IAS 19. Backlog does not include the recently signed project in Iraq to be executed in collaboration with the Chinese EPC company SEPCO III. 4

5 FY2013 RESULTS HIGHLIGHTS Metallurgy & Mining EPC Energy Market Environment Weak LME-based Prices in Strong Premium prices. Weak Macro environment. Consistently high energy costs. Growth in electricity consumption particularly in emerging markets, driven by strong fundamentals. Increased need to replace ageing installed capacity and diversify the energy mix exploiting environmental friendly and flexible operating technologies. Weak power demand in the Greek market (down 3,7%). Increased power production from RES and Hydro. Change of the regulatory framework regarding capacity certificates payment and cost recovery mechanism. Greece has committed to implement an ambitious privatization program including stakes held by the public in PPC and DEPA. Business Developments Improved performance, despite lower LME Aluminium prices. ContinuingCost Focus - Successful implementation of MELLON program. Overall strong financial performance underpinned by increased net profitability in Sustained high EBITDA margin (16.9%). Successful Backlog Replenishment Winning new contracts in MENA region. Solid performance of the energy sector. Mytilineos Group power production reached 4.1 TWh in 2013, accounting for 34% of total power generation derived from natural gas units. Source: Company Information. 5

6 AGENDA AGENDA FY2013 Results Highlights Summary Financial Results Business Units Performance Q&A 6 6

7 MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS Financial Performance (amounts in mil ) P&L Turnover 1,403 1,454 EBITDA EBIT EBT EAT Continuing Operations EATam Margins (%) EBITDA 16.5% 11.8% EBIT 11.9% 7.2% EBT 5.7% 3.8% EAT Continuing Operations 4.8% 3.1% EATam 1.6% 1.3% Cash Flows Cash Flows from Operations Cash Flows from Investment Cash Flows from Financial Activities Net Cash Flow FCF Key Drivers: Improved financial performance supported by increased contribution from the Energy Sector. Continuing Strong Performance of the EPC Sector. Resilient Performance of the Metallurgy Sector despite lower LME based prices. Improved performance in 2013 driven by higher volumes strong premiums and drastic cost savings. One off positive effect of 29m. on the back of the arbitration ruling on electricity tariff. Source: Company Information figures have been revised according to IAS 19. 7

8 MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS (amounts in mil ) Balance Sheet Leverage Non Current Assets 1,674 1,666 Current Assets 991 1,058 Total Assets 2,664 2,724 Debt Cash & Cash Equivalents Equity 1, Adj. Equity 1,254 1,086 Net Debt Key Ratios NET DEBT / SALES 36.3% 49.9% NET DEBT / EBITDA EV / EBITDA ROCE 13.0% 9.3% ROE 2.1% 2.0% Adj. Equity = Equity + Market Value Adjustment for the Group s Listed Subsidiaries. Key Ratios refer to annualized figures. NetDebt=Debt CashPosition. Source: Company Information. 8

9 MYTILINEOS GROUP TURNOVER GAP ANALYSIS MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS (amounts in mil ) TURNOVER 9 Source: Company Information. 9

10 MYTILINEOS GROUP EBITDA GAP ANALYSIS MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS (amounts in mil ) EBITDA Source: Company Information figures revised according to IAS

11 MYTILINEOS GROUP EATam GAP ANALYSIS MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS (amounts in mil ) NET PROFIT Source: Company Information figures revised according to IAS

12 MYTILINEOS GROUP SUMMARY FINANCIAL RESULTS Amounts in mio Cash Debt Evolution Cash Opening Cash From Operations Financials Taxes OPERATING C/F Capex Other Investment Activities Dividends paid INVESTMENT C/F Change in Debt Other Financial Activities FINANCIAL C/F Cash Closing Source: Company Information. 12

13 METKA GROUP SUMMARY FINANCIAL RESULTS Financial Performance (amounts in mil ) P&L Turnover EBITDA EBIT EBT EAT Continuing Operations EATam Margins (%) EBITDA 16.8% 16.9% EBIT 16.1% 16.1% EBT 14.3% 15.4% EAT Continuing Operations 15.1% 12.9% EATam 15.1% 12.8% Cash Flows Cash Flows from Operations Cash Flows from Investment Cash Flows from Financial Activities Net Cash Flow FCF Key Drivers: Strong Performance in Successful execution of energy projects in different countries. Strong EBITDA margin maintained(16.8%). Net Cash Position as of 31/12/2013: 125 m. Strong Backlog: 1.5 bn. as of 31/12/2013. Source: Company Information. 13

14 METKA GROUP SUMMARY FINANCIAL RESULTS (amounts in mil ) Balance Sheet Liquidity Non Current Assets Current Assets Total Assets Bank Debt Cash Position Equity Current Liabilities Total Liabilities Net Debt Key Ratios EV / EBITDA ROCE 21.0% 20.0% ROE 20.4% 18.9% Source: Company Information. 14

15 AGENDA FY2013 Results Highlights Summary Financial Results Business Units Performance Q&A 15 15

16 M&M - INDUSTRY & MACRO ENVIRONMENT AVG FY2013: $1,845 Aluminium LME Prices - Premiums Total World Consumption Growth ALUMINIUM The average Aluminum price during 2013 settled at $1,845 down 8.6% as market sentiment was adversely affected by the overall weak environment in Europe, tapering of monetary stimulus policy by FED, as well as renewed concerns over China s economic outlook and shadowbanking crackdown. Inventory Level: Inventories stand close to 5.4 mt, however metal availability remains tight due to stock financing deals that effectively lock up all metal stored outside the LME. In contrast to declining aluminium prices, premiums surged to record high levels reflecting the tightness of physical markets. Supply: Sustained soft pricing environment continue to hurt high cost smelters. Curtailments are gaining pace leading Aluminum market into deficit, while producers across the world negotiate subsidies/incentives in the form of electricity tariff discounts. Demand: Total world consumption grew by c.7% in 2013 and is expected to remain robust in Longer term Global demand growth is expected to accelerate on the back of positive demographics and improving manufacturing activity. Source: Company Information, CRU ANALYSIS, Harbour Intelligence. 16

17 M&M - INDUSTRY & MACRO ENVIRONMENT AVG FY2013: 1.33 Eurodollar Parity EUR/USD: /$: Eurodollar after trading for a long period close to 1.30 level has moved over 1.35 at the end of The average parity in FY2013stoodat1.33up3,3%vs2012. Going forward monetary policies implemented by FED and ECB, capital flows discrepancies in Europe and growth differential between the Euro area and the USA will largely determine the parity trend. Pipeline Gas vs LNG OIL NATURALGAS: The average price for Brent during FY2013 stood at $109 a barrel against $112 in Geopolitical tensions within OPEC and MENA region continued to offer support to Oil prices affecting also Natural Gas prices. US remain disconnected from other markets however increasing ShaleGasproductivityisexpectedtoturnUStoanetexporter. US Gas production affects also Coal prices displacing expensive Gas for power generation in Europe. Additionally the weak economic environment in Europe and expectations for domestic Shale Gas production put further downward pressure on NG spot prices, while Oil indexation faces already major challenges. China s Natural Gas unconventional production continues to grow. MYTILINEOS Group has in place a joint management agreement with DEPA for the supply of Natural Gas to its subsidiaries. The agreement ensures flexibility related to the fuel mix (ie LNG vs Pipeline Gas) according to prevailing pricing conditions in the LNG spot market. Source: Company Information, CRU, Credit Suisse, Societe Generale. 17

18 GROUP - BUSINESS UNIT PERFORMANCE (amounts in mil ) M&M Turnover EBITDA PER ACTIVITY EBITDA EAT EPC Turnover FY13: 232 m. EBITDA EAT ENERGY Turnover EBITDA EAT Discontinued Turnover -6-6 FY12: 171 m. EBITDA -2-1 EAT 0 1 CC - Other Turnover 0 0 EBITDA EAT TOTAL GROUP Turnover 1,403 1,454 EBITDA EAT Corporate Center includes all other activities that are not directly linked to M&M, EPC and Energy. EPC does not include intercompany transactions. FY2012 figures revised according to IAS 19. Source: Company Information. 18

19 EPC - INDUSTRY & MACRO ENVIRONMENT Fundamentals Prospects Greece Weak demand for new energy projects on the back of the particularly weak macro environment. Fuel mix changing with increasing penetration of RES. Existing capacity remains old and inefficient. PPC: replacement of highly inefficient lignite fired plants. Newgasfiredprojectsmayemerge, butatslowerrate. EPC opportunities for RES, e.g CSP. South-East Central Europe- Turkey EU membership and convergence impose obligations for plant upgrades and/or closures. Years of under-investment and slow progress to upgrade capacity. Government support and relatively high level of acceptance for nuclear. SEE: gas fired projects: potential combined cycle and COGEN projects, e.g. district heating. Turkey remaining a promising market despite recent slowing down of new investments. Middle East Generally strong demand - emphasis on mega-projects. Need to diversify fuel sources and increasing emphasis on fuel efficiency. Re-emergence of Iraq as a significant market in the medium-long term. Possibilities for conversion of open cycle plants to combined cycle across the Middle East. Numerous large Integrated Water & Power Plant (IWPP) projects in the Gulf. Africa Strong fundamental power demand growth, often constrained by supply limitations. Widespread power shortages. Massive need for energy infrastructure investments. Typically smaller projects with fast-track profile. Source: Company Information. 19

20 Backlog Main Projects under Execution in 2013: EPC - BACKLOG Turkey 1.5 bn OMV (BORASCO): 870 MW CCGT in Samsun. GE sub supplier for the main equipment. Contract value of 475 m. RWE & Turcas Güney Elektrik Uretim A. Ş. : 775 MW CCGT in Denizli. Siemens sub supplier for the main equipment. Contract value of 450 m. Iraq Republic of Iraq: 1250 MW OCGT in Basra. GE sub supplier for the main equipment. Contract value of 260 m. Syria PEEGT: 700 MW CCGT in Deir Ali. METKA leader of Consortium with Ansaldo. Contract value of 650 m. Backlog Sales Evolution Algeria PEEGT: 724 MW CCGT in Deir Azzour. METKA leader of Consortium with Ansaldo.Contractvalueof 678m. 24 sets of trailer mounted Balance of Plant equipment. METKA s Turkish subsidiary Power Projects Limited in consortium with GE. Contract value of 153m. SPE (Spa): 368 MW 0CGT in Hassi R mel. METKA in Consortium with GE. Contractvalueof 93m. SPE (Spa): 591 MW 0CGT in Hassi R mel II. METKA in Consortium with GE.Contractvalueof 175m. Jordan SEPCO: 143 MW upgrade of open cycle to combine cycle plant. ALSTOM technology. Contract value of 120 m. SEPCO: 146 MW Fast Track simple cycle project in Amman. Main equipment supplied by Alstom. Contract value of 82 m. Source: Company Information,. *Backlog does not include the recently signed project in Iraq to be executed in collaboration with the Chinese EPC company SEPCOIII the recently signed project in Algeria and the railway project in Greece,, which is not signed yet. 20

21 METKA EPC BUSINESS UNIT PERFORMANCE METKA establishes itself as a Leading European Energy EPC Contractor 91.3% of Turnover refers to energy projects. 89.8% of Turnover derived form projects abroad. amounts in mil ENERGY Turnover EBITDA EATam Geographical Turnover Analysis DEFENSE Turnover EBITDA 7 1 EATam 3-1 INFRASTRUCTURE Turnover EBITDA 3 2 EATam -1 2 METKA GROUP Turnover EBITDA EATam Source: Company Information. Source: Company Information. 21

22 Key Characteristics & Trends ENERGY - INDUSTRY & MACRO ENVIRONMENT Future Outlook Demand Supply Consumption has grown with a yearly average of 3,7% in the decade , peaking during the summer(strong air cooling penetration in the commercial and residential sectors). The prolonged recession coupled with mild weather have resulted in c. 11% drop during the period The percentage of domestic lignite in generation, in the interconnected System, stands at c.46%, and Greece has reserves for another 50 years. Gas s share has increased over the last 5 years, as most recent investments have been in CCGTs. In 2013 the share in domestic production has risen to 24% against 19.4% in Greece is importing gas,mainlyfromrussiaandturkeyviapipelineandlngfromalgeriaand the spot market. RES (excluding large hydro) have shown remarkable growth over the last few years mainly driven by soaring PV capacity additions and participate with c. 15% in the mix. Greece relies on important wind and solar potential. In 2013, a drop of 3.7% has been noticed amid a macro environment which remained particularly weak. Demand for power is expected to stabilise going forward, while GDP performance and weather conditions are expected to continue playing amajorrole. Lignite will remain a cornerstone, though its share will decrease. Overall robust Gas-fired participation in the fuel mix given that all the new conventional capacity added during the last five years concerns Natural Gas fired capacity. Increased RES penetration adding to the liquidity crunch in the domestic electricity market. Development of new system interconnections to connect isolated islands to the mainland Grid and allow the development of large scale RES projects. Competitive Dynamics Source: Company Information. Imports, primarily from northern interconnections, and exports, primarily to Italy, are made for commercial purposes, with traders benefiting from price differences in these interconnected countries. PPC is the incumbent with >97% market share in retail and around 70% in the wholesale market. Currently, there are 7 independent units with a total installed capacity of 2.6 GW while total thermal capacity stands at 10.2 GW. Foreign players have entered the market since 2006, teaming up with local (non-operator) investors (Endesa-Mytilineos, Edison-ELPE, ). Mytilineos has replaced Iberdrola in the joint venture with Motor-Oil and has also acquired the full control of Protergia (ex. Endesa Hellas) buying out ENEL s participation. GDF-Suez cooperates with the Greek company Terna. Recently, Qatar Petroleum International acquired 25% stake in HERON Power Plant. RAE has introduced a roadmap for the reform of the Greek electricity market to move from a mandatory pool towards an economic day-ahead market (power exchange) with separate markets running in parallel for unit scheduling, ancillary services provision and balancing/real time scheduling. The Government is looking to push forward with the privatization plan for PPC in three stages that involve the spinoff and privatization of the grid operator IPTO, the establishment of a new vertically integrated power company representing c.30% of PPC and finally the further privatization of PPC.

23 ENERGY - INDUSTRY & MACRO ENVIRONMENT Fuel Mix 2013 Ex-Ante SMP data (EUR) AVG 2012: 56.7 AVG 2011: 59.4 AVG 2013: 41.5 Energy Market Developments in 2013 Total Power demand stood at 50.7 TWh(down 3.7% ) negatively affected by the weak economic environment. Average SMP settled at 41.5 /MWh(down 27% ). Lignite production stood at 23.2 TWh(down 16% ). Hydro production significantly increased at 5.6 TWh (up 45% ) on record high water reserves. Natural Gas production stood at 12.1 TWh(down 14% ). RES production reached 7.6 TWh(up 40% ) boosted by growing penetration of PVs. Source: Company Information, HTSO, LAGIE

24 ENERGY PERFORMANCE DATA Mytilineos Group Power Production Financial Performance Mytilineos Group Power production stood at 4.1 TWh during ,1% market share of the domestic power production % market share of the domestic power production derived from natural gas. Source: Company Information, HTSO. Financial Performance refers to energy segment ( AG. NIKOLAOS CCGT, KORINTHOS POWER CCGT & RES). 24

25 AGENDA FY2013 Results Highlights Summary Financial Results Business Units Performance Q&A 25 25

26 Contact Information Dimitris Katralis IR Officer Tel: Fax: Mytilineos Holdings S.A. 5-7 Patroklou Str Maroussi Athens Greece Tel: Fax: