Results Amsterdam, 20 February Annual results February 2019

Transcription

1 Results 2018 Amsterdam,

2 BAM delivers 2018 outlook with adjusted pre-tax result of million Adjusted pre-tax margin of 2.1% despite the impact of sea lock IJmuiden project (OpenIJ) Construction and Property: good result benefitting from Dutch residential property, UK and Ireland Civil engineering: strong performance in UK and Ireland, mainly offset by the Netherlands PPP: solid performance from the existing portfolio Order book growth driven by multi-year projects with firm focus on tender discipline Positive cash flow with strong inflow in second half 2018 Non-cash impairments on Dutch regional property positions in Q3 and Dutch deferred tax asset in Q4 Dividend proposal of 0.14 (2017: 0.10) per share with scrip alternative and buy-back to offset dilution 2

3 Coal Drops Yard, London BAM Construct UK 3

4 Targets 2020 Return on average capital employed Adjusted result before tax margin Trade working capital efficiency Property portfolio ( million) 7,5% >10% 4% ,6% 0,4% 2,1% 2% -11,1% -8,8% <-10% < Capital ratio 18,6% 18,5% 25% Incident Frequency (per million hours worked) 4,6 4,2 3.5 CO2 emission (tonnes/ million) 28,1 26,8 23,2 Construction and office waste (tonnes/ million) 20,3 17,9 16, restated for IFRS 15, where applicable 4

5 Construction and Property (in million) Revenue Result NL UK BE GE IE INT 0 NL UK BE GE IE INT Order book TWC efficiency % % -10% NL UK BE GE IE INT , restated for IFRS Q Q2 Trade working capital Q-end Restated for IFRS 15 as from 4Q16 Q Q2 Q % Average TWC as % of 4-Q rolling revenue Restated for IFRS 15 as from 3Q17 5

6 Zalmhaven Tower (215 m; 256 apartments; total 485 apartments), Rotterdam AM and BAM Bouw en Techniek 6

7 Construction and Property (in million) Dutch house sales Gross property position (in million) Q1 Q2 Q3 Q4 0 Q Q2 Q Q2 Q Gross property position Q2 Q

8 Three multi-year performance contracts with Schiphol BAM Bouw en Techniek and BAM Infra 8

9 Civil engineering (in million) Revenue Result NL UK BE GE IE INT -75 NL UK BE GE IE INT Order book TWC efficiency % % NL UK BE GE IE INT -400 Q Q2 Trade working capital Q-end Q Q2 Q Average TWC as % of 4-Q rolling revenue -10% , restated for IFRS 15 Restated for IFRS 15 as from 4Q16 Restated for IFRS 15 as from 3Q17 9

10 Sea lock IJmuiden (OpenIJ), BAM PPP and BAM Infra (In joint operation) 10

11 Quay wall British Antarctic Survey, Antarctica BAM Nuttall and BAM International 11

12 PPP (in million) 50 Portfolio (number) Results* (in million) 25 Investment (in million) In operation Under construction Adjusted result before book profits Book profits Injected equity Committed equity Preferred bidder * 2017 restated for IFRS 15 12

13 Skibbereen Community School, Cork BAM PPP and BAM Ireland 13

14 Accounting changes IFRS 15: Revenue recognition IFRS 11: Joint arrangements German Argen IFRS 16: Leases 14

15 Income statement (in million, unless stated otherwise) 2018 Margin 2017* Margin Total sectors % ,4 % Group overhead Group interest charge Adjusted result before tax % % Restructuring Impairments Pension one-off Result before tax Income tax Non-controlling interest Net result % Neg. * Restated for IFRS 15, where applicable 15

16 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 Q Q Work-in-progress debit Trade and other payables Q Q Q2 Q Q2 Q % -5% -10% -15% Trade working capital Trade working capital Q-end Average TWC as % of 4-Q rolling revenue Restated for IFRS 15 as from 4Q16 Restated for IFRS 15 as from 3Q17 16

17 Cash flow (in million, unless stated otherwise) * Net cash result Investments (I)TFA Trade working capital Net investment Property 6 80 Net investment PPP 6 1 Other working capital Business cash flow Dividend Restructuring Pensions (additional) Other Cash position * Restated for IFRS 15, where applicable 17

18 Financial position (in million, unless stated otherwise) * Cash position Interest-bearing debt Net cash position Recourse net cash position Capital ratio 18.5% 18.6% Return on average capital employed 7.5% 0.6% * Restated for IFRS 15, where applicable 18

19 Market conditions 19

20 Order book (in million, unless stated otherwise) Construction and Property 7,025 6,895 Civil engineering 5,577 4,694 PPP Eliminations and other Total sectors 12,700 11,600 20

21 Outlook For 2019, BAM expects the revenue to be around 7 billion and aims to further improve the adjusted result before tax margin within the strategic target range of 2 to 4%. 21

22 Dividend 2018 BAM proposes a dividend of 14 euro cents per ordinary share. This equates to a payout ratio of 40% of net result after adjustment for the 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 shares to offset the dilution. 22

23 Museum of the Future, Dubai BAM International 23

24 Annexes Strategy: Building the present, creating the future Property investments PPP investments Net cash analysis Revenue sector/country 24

25 Strategy Building the present, creating the future Focus project portfolio Shape business portfolio Create future portfolio Differentiating capabilities BAM s unique culture 25

26 Targets 2020 Profit People ROCE >10% Safety IF < 3.5 Planet Adjusted Pre-tax margin 2-4% Property < 500m TWC < -10% Net positive impact 26

27 Focusing project portfolio 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 27

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

29 Create future portfolio Digital construction process Digital built environment 29

30 Culture Culture Predictable performance Profitable projects Selected segments Proactive ownership Open collaboration Execution Proposition Understanding Scalable Learning Innovation 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 31

32 Property investments (in million, unless stated otherwise) Land and building rights Property development Total investments (a) Total investments (in million) 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 32

33 PPP investments (in million, unless stated otherwise) 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. 33

34 Net cash analysis (in million, unless stated otherwise) Non-recourse PPP loans Non-recourse project financing Other project financing Total project related Subordinated convertible bonds Financial lease liabilities Bank overdrafts and other loans 6 5 Total interest-bearing debts Less: cash Net cash position

35 Revenue sector/country (in million) Construction and Property Civil engineering PPP Total Netherlands 19% 19% 0% 38% United Kingdom 15% 13% 0% 28% Belgium/Luxembourg 7% 3% 0% 10% Germany/Swiss 6% 6% 0% 12% Ireland 6% 1% 0% 7% International 2% 3% - 5% Total 55% 45% 0% 100% Revenue per sector/country 2018 as a percentage of gross total revenue

36 Contact Joost van Galen Runnenburg AZ Bunnik The Netherlands PO Box CA Bunnik The Netherlands +31 (0) info@bam.com 36