Earnings Release FY May 2015

Transcription

1 Earnings Release FY May 2015

2 Results highlights Financial overview Region overview Final remarks 1

3 Overview 12 THOUSAND EMPLOYEES TURNOVER 1,048 Mn 1.4 Bn BACKLOG 73 Mn NET INCOME EBITDA 261 Mn 2

4 Highlights Turnover up 4% YoY to 1,048 Mn, with the SADC region accounting for 53% of the total EBITDA reached 261 Mn, with a margin of 25%, supported by Angola and SADC Net income down 4% YoY to 73 Mn Backlog of 1.4 Bn with contribution from all new regions Sound capital structure with a Net debt/ebitda of 0.6x, excluding leasing Successful completion of Nacala s project, the Group s major project ever Recent awarded contracts in six countries amounting to 565 Mn Listing of Mota-Engil Africa accomplished on 24 November

5 Results highlights Financial overview Region overview Final remarks 4

6 Net income of 73 Mn P&L ( Mn) YoY Turnover 1,048 1,005 4% EBITDA % Margin 25% 24% 1 p.p. EBIT (21%) Net financials (51) (57) 11% Net income from equity method n.m. Taxes (35%) Non-controlling interests 9 29 (68%) Net income (4%) Turnover up 4% YoY, mainly driven by SADC EBITDA reached 261 Mn, reflecting excellent operating performance EBIT impacted by higher non-cash costs mainly due to Nacala s project related assets D&A and increased provisions Non-controlling interests impacted by the subsidiary Mota-Engil Angola Net income down 4% to 73 Mn 2013: Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

7 EBITDA margin reached 25% P&L breakdown ( Mn) YoY Turnover 1,048 1,005 4% Angola (10%) SADC % West Africa % East Africa 2 0 n.m. EBITDA % Angola % Margin 26% 19% 8 p.p. SADC % Margin 25% 25% (0 p.p.) West Africa 0.6 (1.3) n.m. Margin 3% (9%) 12 p.p. East Africa (0.6) (0.2) n.m. Margin (31%) n.m. n.m. Turnover in SADC region increased 17%, due to Nacala s project and new contracts in Mozambique Angola s activity decelerated in 2014 and accounted for 44% of turnover Still small activity in West and East Africa, but growing as new countries and contracts are added EBITDA margin benefited by strong operating performance in Angola and in SADC 2013: Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

8 Backlog improving December 2014 backlog of 1.4 Bn, well balanced between Angola and SADC, but with contribution from all regions West and East regions already contributed to 10% of total backlog 49% of the backlog related to private clients and 44% to road and railway infrastructure projects Recent awards amounting to 565 Mn in six countries, including a new market, Rwanda Backlog breakdown by region 5% 5% Backlog evolution ( Mn) 40% 1,480 1,469 1,314 1,424 50% Angola SADC West Africa East Africa Q13 1H13 9M Q14 1H14 9M : Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

9 Capex is key to support growth in Africa Total capex of 128 Mn, of which 74% allocated to Angola and SADC and impacted by the acquisition of some assets related to the Nacala s project following its completion Growth capex accounted for 45% of the total and was mainly channeled to SADC Maintenance capex abnormally high due to equipment replacement requirements, following intense activity Capex by region Capex by nature ( Mn) % 29% 96 45% Angola SADC Other Maintenance Growth 2013: Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

10 Strong operating cash-flow Cash-flow ( Mn) Net debt start position EBITDA Change in working capital (57) (58) Operating cash-flow Maintenance capex (71) (29) Net Financials (51) (57) Corporate tax (20) (30) Free cash-flow bf growth capex Growth capex (57) (67) Financial Investments (3) 2 Dividends (5) (37) Changes in m/l term & perimeter 6 (60) Change in debt position 3 (93) Operating cash-flow of 204 Mn, driven by strong operating performance Negative impact of working capital due to start of several projects without pre-payments Free cash flow impacted by stronger capex in the period Strong financial structure with Net debt/ebitda of 0.6x, without leasing Net debt end position Net debt 1 /EBITDA 0.6x 0.6x 1 Excluding leasing 2013: Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

11 Net debt down to 145 Mn Balance sheet ( Mn) Dec.14 Dec.13 YoY Fixed assets Financial investments Long term receivables Working capital Equity Provisions Long term payables Net debt (4) Increase in fixed assets driven by capex in the period Increase in provisions mainly related to Angola Equity increased 75 Mn to 431 Mn Net debt at comfortable levels, reaching 145 Mn, without leasing Invested Capital : Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

12 Extending debt maturities Net debt, including leasing reached 206 Mn at December 2014 M/L term debt of 151 Mn, corresponding to 45% of total gross debt (excluding leasing) Average debt life of 2.2 years, up from 1.8 years in December 2013 Average cost of debt of 8.8% Comfortable liquidity position with 71 Mn in undrawn credit lines 2013: Combined and unaudited figures, considering the effects of the demerger of Mota-Engil Engenharia e Construcão, S.A. into Mota Engil Engenharia e Construcao Africa, S.A. in December

13 Results highlights Financial overview Region overview Final remarks 12

14 Towards increased diversification Backlog: 78 Mn Turnover: 19 Mn EBITDA: 0.6 Mn Backlog: 65 Mn Turnover: 2 Mn EBITDA: Mn Backlog: 571 Mn Turnover: 456 Mn EBITDA: 120 Mn Backlog: 709Mn Turnover: 555 Mn EBITDA: 138 Mn 13

15 Monitoring Angola evolution Calueque dam, Angola Crucial region, but importance should decrease already in 2015 due to diversification strategy 57% of backlog contracted with private clients 115 Mn of contracts recently awarded focused on roads and civil construction Major ongoing projects include the Calueque dam project Conservative future pipeline outlook due to oil price uncertainty, notwithstanding crucial infrastructure needs 14

16 Strengthening SADC presence Hwange Colliery, Zimbabwe Contracts recently awarded amounting to c. 410 Mn, mainly related to roads and railway infrastructures, namely to Vale Major success in Mozambique, where the leading position was achieved in 2014 Entry in Zambia and Zimbabwe during 2014 Major ongoing projects include the rehabilitation of the Sena Corridor in Mozambique Future pipeline expected to be driven by Mozambique, Zambia and Swaziland 15

17 Expanding West and East Africa presence São Nicolau dam, Cape Verde Presence in two small markets in West Africa, with strong perspectives to enter in new countries, such as Ghana, Gabon and Cameroon Sundance s project in Cameroon with financial close still pending Kampala Northern Bypass, Uganda In 2014 entered in Uganda, East Africa, with the Kampala Northern Bypass road project Recent projects awarded in East Africa, Rwanda, totalling 26 Mn Pipeline includes new countries, such as Kenya and Tanzania 16

18 Results highlights Financial overview Region overview Final remarks 17

19 Final Remarks Strong operating performance with all-time high EBITDA margin During 2014, activity was expanded into new countries, such as Zimbabwe, Zambia and Uganda, in line with diversification strategy Backlog improving and becoming more geographically diversified Focus on cash-flow generation, with close attention to Angola s evolution 2015 will be a transition year for Mota-Engil Africa activity, with turnover expected to be flat and EBITDA margin in line with the announced guidance of slightly above 20% Pipeline of US$10 Bn, across all countries, supports expected growth ahead Mota-Engil continues to evaluate, subject to market conditions, capital markets transactions that could unlock value and increase liquidity in Mota-Engil Africa s shares 18

20 Disclaimer & other information Certain statements made in this document contain forward-looking statements which relate to the Group s results of operations, business and prospects. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forwardlooking statements are not guarantees of future performance which may differ materially from any future results expressed or implied from such forward-looking statements. The forward-looking statements contained in this document speak only as at the date of this document. Subject to any obligations under applicable law, Mota-Engil Africa undertakes no obligation to update publicly or to review any forward-looking statement, whether as a result of new information, future developments or otherwise. The Group s pipeline and backlog is based on the beliefs of Mota-Engil Africa, as well as the assumptions made by and information currently available to Mota-Engil Africa. Although Mota-Engil Africa believes that the expectations reflected in such forward-looking statements are reasonable at this time, it cannot assure you that such expectations will prove to be correct figures: Combined and unaudited figures, considering the effects of the demerger of Mota- Engil Engenharia e Construção, S.A. into Mota-Engil Engenharia e Construção África, S.A. in December 2013, extracted from the Non-Statutory Combined Financial Statements presented in the Listing Prospectus dated 21 November 2014 For full information on all material aspect of the company s financials, please consult the Consolidated Report & Accounts 2014 on the company s website: The Listing Prospects has also been made available on the company s website. 19

21 João Vermelho Director, Head of Investor Relations Maria Anunciação Borrega Investor Relations Officer Rua de Mário Dionísio, Linda-A-Velha Portugal Tel REGISTERED OFFICE AFRICAN HEADQUARTERS