2017 half year results. Amsterdam, 24 August 2017

Transcription

1 217 half year results Amsterdam, 24 August 217

2 BAM reports 1H17 adjusted result of 52.7 million and reconfirms full year outlook Margin improved to 1.7% on lower revenue Construction and Property: strong margin improvement due to prior restructuring and market conditions Civil engineering: better margin in after slow start to the year PPP: strong result from portfolio; healthy tender pipeline Order book: upward trend and continued tender discipline Cash flow: normal seasonality; trade working capital efficiency -1.6% 1

3 Construction and Property (1) Revenue of 1.8bn reduced by.2bn including 6m negative FX. Revenue IE up due to progress larger projects. Overall result of 32.9m (1.8% margin), included 8.3m from property, mostly from Dutch residential. Margin improvement in all home countries. GE on track for break even for full year 217. Total order book stable at 6.3bn. Slightly lower order book IE, GE and INT mainly offset by higher order intake in Dutch residential. TWC efficiency was -12.2% at 3 June 217 (3 June 216: -11.4%). (in million) Revenue NL UK BE GE IE INT Order book NL UK BE GE IE INT Result NL UK BE GE IE INT TWC efficiency Q4 215 Q4 216 % -5% -1% -15% Trade working capital Q-end Average TWC as % of 4-Q rolling revenue 1H17 1H16 FY16 1H16 restated for new sectors 2

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5 Construction and Property (2) Dutch house sales up by 5% to 1,15. Growing demand new build houses hampered by low planning capacity at municipalities. Gross property portfolio reduced by 29m to 61m due the sale of two Dutch non residential properties ( 55m) at a modest book profit. Reduction partly offset by buy out joint venture partners at residential projects. Property position includes investments in land 427m and Property development 174m. (in million) Property position Q4 214 Q4 215 Gross property position Property by geography Q4 216 House sales NL UK BE IE Q1 Q3 Q4 Residential Non-residential 4

6 Civil engineering (in million) Sector revenue of 1.4bn grew by 4% on a constant currency. Growth in all home markets, INT lower due to slump oil and gas. Overall margin below 1H16, mainly due to some losses in NL caused by design related issues which have been resolved, difficult market circumstances in BE and the absence in GE of a strong contribution as in 1H16. UK strong result, also including some final account settlements. Total order book up by.3bn to 4.2bn. Increase driven by transport infrastructure projects in the UK. TWC efficiency was -8.3% at 3 June 217. (3 June 216: -6%) Revenue Result NL UK BE GE IE INT -5 NL UK BE GE IE INT -1 Order book TWC efficiency NL UK BE GE IE INT Q4 215 Q4 216 Trade working capital Q-end % -5% -1% Average TWC as % of 4-Q rolling revenue 1H17 1H16 FY16 1H16 restated for new sectors 5

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8 PPP Strong result from the project portfolio No projects transferred to PGGM joint venture in 1H17 (1H16: 2). Pipeline of active bids remains healthy with next decisions expected in 218 and beyond. Portfolio consists of 4 projects, including 8 projects under construction. (in million) Portfolio (number) H17 In operation Under construction Preferred bidder Result H16 1H17 Book profits Adjusted result before book profits 7

9 Income statement (in million, unless stated otherwise) 1H17 Margin 1H16 Margin Total sectors % % Group overhead Group interest charge Adjusted result before tax % % Restructuring Impairments Pension one-off Income tax Non-controlling interest Net result % % 8

10 Cash flow (in million) 1H17 1H16 1H15 Net cash result Investments (in)tangible assets Trade working capital Net investment Property Net investment PPP Other working capital Business cash flow Dividend Restructuring Pensions (additional) Others Cash position Business cash flow showed a seasonal outflow in 1H17 - as in 1H15 - compared to atypical inflow in 1H16. Investment long term assets driven by patented Gravity Based Foundations and strategic equipment after years of lower CAPEX. Trade working capital efficiency of -1.6% remained at the target (year-end 216: -1%, 3 June 216: -9.1%). Normal outflow for first half of the year. Cash in from property driven by transfer of property positions in North East of the Netherlands and a Dutch stadium complex. Changes in Other working capital in 1H16 was low due to transactions with joint operations. 1H17 seasonal pattern. Others reflected mainly translation effect of the pound sterling. 9

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12 Trade working capital Trade working capital (in million) Trade working capital (in million and TWC as %) % -5% -1% Q Q Q Q4 215 Q % Work-in-progress credit Trade and other receivables Trade working capital Work-in-progress debit Trade and other payables Trade working capital Q-end Average TWC as % of 4-Q rolling revenue Strategic target 11

13 Financial position (in million, unless stated otherwise) 1H H16 Cash position Interest-bearing debt Net (debt) / cash Recourse net cash Capital ratio 21.3% 19.7% 2.4% Return on rolling capital employed 3.3% 2.8% 2.5% Recourse net cash position in line with strong position at 3 June H17 developed along normal seasonal pattern. Interest-bearing debt increased due to progress PPP projects under construction. Capital ratio improved because of higher equity and lower balance sheet total. Return on capital employed helped by improved results. 12

14 Order book (in million) 1H Construction and Property 6,276 6,264 Civil engineering 4,246 3,95 PPP Eliminations and other Total 1,4 1,2 Construction and Property slightly higher, mainly driven by residential in the Netherlands. Civil engineering increased in the UK, partly offset by Germany and BAM International. Negative impact FX.1bn. 13

15 Outlook For 217, BAM expects the revenue to be slightly lower and the adjusted result before tax to be higher than the level of 216. BAM anticipates a significantly lower restructuring charge compared to

16 Annexes Updated strategy: Building the present, creating the future Property investments PPP investments Net cash analysis Revenue sector/country 15

17 Strategy Building the present, creating the future Focus project portfolio Shape business portfolio Create future portfolio Differentiating capabilities BAM s unique culture 16

18 Targets 22 Profit People ROCE >1% Safety IF < 3.5 Adjusted pre tax margin 2-4% Property < 5m TWC < -1% Planet Net positive impact 17

19 Strategy execution Profit Return on capital employed Trade working capital efficiency 15% 1% 5% % -5% -1% Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Q % -2% -4% -6% -8% -1% -12% Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Q Capital employed ROCE Target 22 TWC Q end TWC efficiency Target months rolling adjusted result Property 5,% 4,% ,% 6 2,% 4 1,%,% Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Rolling adjusted result margin Target 22 Q1 2 Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Property Target 22 Q1 18

20 Strategy execution People & Planet Safety (IF) CO 2 (kilotonnes) Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Q Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Q1 Waste (kilotonnes) Q3 Q4 214 Q1 Q3 Q4 215 Q1 Q3 Q4 216 Q1 19

21 Focusing project portfolio (1) Scale Expertise 2

22 Focusing project portfolio (2) Selection Stage gate Peer review Operational audit 21

23 Focusing project portfolio (3) 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 22

24 Home markets Royal BAM Group nv Shape business portfolio Inside Fix or exit Develop new propositions along lifecycle Outside Stay out Leverage high-margin specialisms High Low Level of competition 23

25 Create future portfolio Digital construction process Digital built environment 24

26 Culture Culture Predictable performance Pro active ownership Profitable projects Selected segments Open collaboration Scalable Learning Execution Proposition Innovation Understanding 25

27 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 26

28 Property investments (in million) (in million) 217 Q4 216 Total investments ( 217) Land and building rights Property development Total investments (a) Non-recourse loans Recourse loans Total loans (b) Property ass./jv/ahfs (c) Net investments (a) (b)+(c) NL UK BE IE Residential Non-residential 27

29 PPP investments (in million, unless stated otherwise) 217 Q4 216 Investment equity 1) Committed equity 2) Total invested & committed equity NPV Total invested & committed equity (A) NPV Future equity cash inflows (B) Estimated unrealised value (B) (A) ) BAM share invested in equity of PPP contracts 2) Excluding contracts in preferred bidder stage 28

30 Net cash analysis (in million) million, unless stated otherwise) Q Q Non recourse PPP loans Non recourse project financing Other project financing Total project related Subordinated bank loan - Subordinated convertible bonds Financial lease liabilities 8 7 Bank overdrafts and other loans 5 5 Total interest-bearing debts Less: cash Net debt / (cash) position Recourse net cash position

31 Revenue sector/country Construction and Property Civil engineering PPP Total Netherlands 2% 17% 2% 39% United Kingdom 18% 11% % 29% Belgium/L bourg 7% 4% % 11% Germany/Swiss 6% 5% 1% 12% Ireland 4% 1% % 5% International 2% 2% - 4% Total 57% 4% 3% 1% Revenue per sector/country 216 as a percentage of gross total revenue 216 3

32 Contact details BAM Investor Relations Joost van Galen +31() ir@bam.nl 31