GRAÑA Y MONTERO. Corporate Presentation

Transcription

1 GRAÑA Y MONTERO Corporate Presentation Fourth 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$229mm in 2015 Backlog and recurrent business of US$4.5bn as of December x revenues 3,600 engineers and over 32,000 employees Listed in the NYSE since July 2013 Shareholders December 2015 AFPs (*) 12.5% Others 17.4% Internal Shareholders Internal Shareholders 32.0% 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, 38.0% (*) Includes only AFPs holdings reported at CAVALI (Peruvian clearing house) Other executives and former executives: 3.4% 1

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 2015 Revenues by business segment 2015 EBITDA by business segment 2015 Net Income by business segment Infrastructure 12% Technical Services 14% Real Estate Real Estate 3% Engineering & 13% Engineering & Construction Construction 71% Technical 34% Services 14% Real Estate 10% Infrastructure 38% Technical Services 30% Infrastructure 60% US$ 2,295mm US$ 229mm US$ 26mm (S/. 7,832mm) (S/. 783mm) (S/. 89mm) 2

5 3 Engineering and Construction Main companies: 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. 1,800 GMI: Engineering consulting firm since 1984 consisting in two different divisions: 1,600 Supervision & Engineering and Geomatics. 1,400 Vial y Vives- DSD S.A.: E&C company formed from a merger between two Chilean1,200 companies, Vial y Vives and DSD Construcciones y Montajes, which are companies we1,000 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 Relevant Facts: GyM S.A. will participate with 29% of the construction consortium of the Southern Gas Pipeline project representing an addition of US$ 1 billion to our backlog Stracon GyM signed a contract of US$ 155 million with Red Eagle for the development of the San Ramon Gold Mine for a period of eight years GyM S.A. signed a contract of US$ 60 million with Promotora Larco Mar for the construction of a 5-star category hotel in the disctrict of Miraflores Revenues and EBITDA (US$ in millions) 1,685 1,712 1,382 1,457 1, Revenues EBITDA

6 4 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 350 Concesionaria La Chira: Concession for the construction, operation and maintenance of a 300 waste water treatment plant for Lima Ferrovías GyM: Concessionaire of Line 1 of the Lima Metro 250 GMP: Oil production (Blocks I, III, IV and V), gas processing plant and operation of ten fuel 200 terminals in Peru 150 Concesionaria Via Expresa Sur: Concession to build, maintain, and operate a 4.6km extension of one of the main highways in Lima 100 COGA: Company responsible for the operation and maintenance of the transportation system 50 of Transpotadora de Gas del Perú (TgP) Chavimochic: Concession to build the water infrastructure of the third stage of the Project 0 Revenues and EBITDA (US$ in millions) Relevant Facts: Acquisition of a 20% stake in the shareholder equity of Southern Gas pipeline concessionaire for an approximate amount of US$ 215 MM -In December the company subscribed a medium term loan credit agreement for US$ 200 MM with Credit Suisse to finance the participation in SGP Lima Metro Bond Issuance for S/. 629 MM in February and Norvial Bond Issuance for S/. 365 MM in July Block III and Block IV contracts in Talara: started operations in April 28 Private Iniciatives presented in 2014 and 2015, but 9 are still in the process of approval - 3 Private Initiatives presented in 2014 and 1 in 2015 have been declared of relevance Revenues EBITDA

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 Ancon, Parque Comas Parques de Piura, Parques de Huancayo (Provinces) Housing Projects under execution: El Rancho and Klimt (San Isidro) Commercial Real Estate projects under execution: 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 Millares Technical Services Main companies: GMD: Provider of IT services and business solutions through four divisions: (i) Systems Integration, (ii) IT Outsourcing, (iii) Application Outsourcing, (iv) Business Processes 500 Outsourcing. Concar: Operation and maintenance of infrastructure assets. It currently operates more than400 5,000km of Peruvian roads and highways, including three private concessions, in addition to 300 the Lima Metro. CAM: provides field and specialized electrical services in Chile as well as in Brazil, Colombia, 200 and Peru. 100 Adexus: Provider of IT services with presence in Peru, Ecuador, Argentina and Colombia 0 Relevant Facts: GMD increased its participation of Adexus S.A. in 52% with presence in Chile, Peru, Ecuador, Argentina and Colombia. Concar has been awarded the Buena Pro for services in road corridors for the client Provías Nacional for S/. 284 MM in December 2015 and S/. 203 MM in January 2016 CAM Colombia has obtained the Buena Pro for the client Electricaribe for US$ 63 MM in January Revenues and EBITDA (US$ in millions) Revenues EBITDA

9 Financial Performance Financial Performance Corporate Presentation 9

10 Consolidated Results (US$ in millions) Consolidated Revenues (US$ in millions) 2,500 2,000 Consolidated Net Profit 140 (US$ in millions) ,500 1,000 1,573 2,051 2,134 2,345 2, Consolidated EBITDA (US$ in millions) Consolidated Margins % over Total Revenues % % 15.3% 16.8% 13.1% 14.9% 13.6% 13.6% 6.8% 5.5% 5.4% 4.3% 10.0% 9.0% % 0 Net Margin Gross Margin EBITDA Margin 8

11 Investments Investments Investments by Business Area 2015 (US$ in thousand) $352,293 $385,477 As a percentage Engineering & Construction 13% $292,421 $277,756 $183,050 Others 49% Infrastructure 26% Technical Services 7% Real Estate 4% (US$ in thousands) 2010 Engineering & Construction 22,879 68, ,503 73, ,245 36,393 Infrastructure 4,941 44, , ,198 75,879 72,476 Real Estate 44,184 27,281 50,298 27,075 39,961 12,120 Technical Services 47,151 40,334 15,593 13,403 40,441 19,314 Others 5,758 2,563 4,564 9,686 66, , , , , , , ,756 9

12 Financial Debt Maturity of Gross Debt 2015 (US$ in thousand) Less than Between 1 Between 2 More than 1 year and 2 years and 5 years 5 years Total Other loans 1,082, , ,624-1,480,071 Leasing 145, ,300 37,016 9, ,285 Ferrovías & Norvial Bond Issue 37,083 57,034 68, , ,091 Total debt S/. 1,265, , , ,522 2,575,447 Total debt US$ 370, ,475 95, , ,599 Debt by Business Area 2015 Debt by Currency 2015 Real Estate 10% Peso chileno 6% Peso colombiano 4% Peso boliviano 1% Engineering & Construction 40% Infrastructure 44% Technical Services 6% Dollars 32% Sol 57% 10

13 Composition of Indebtedness DEBT (US$ thousands) Q2015 2Q2015 3Q2015 4Q2015 Working Capital + Leasing 361, , , , ,550 Project Finance 224, , , , ,936 GSP Contribution Financing ,113 Total 586, , , , ,599 EBITDA (US$ thousands) - LTM Q2015 2Q2015 3Q2015 4Q2015 E&C + Real Estate + Technical Services 202, , , , ,167 Infrastructure 103,382 95,020 96,992 95,521 87,210 Total 306, , , , ,376 RATIOS Q2015 2Q2015 3Q2015 4Q2015 Debt/Ebitda (E&C + Real Estate + Technical Services) Debt/Ebitda (Infrastructure) Consolidated Debt/Ebitda

14 Backlog and Recurrent Businesses 5,000 4,000 3, x 356 MM US$ 404 MM US$ 2.25 x 394 MM US$ 2.03 x 580 MM US$ 1.85 x 448 MM US$ 1.95 x 2.00 By segments Total Backlog + Recurrent Businesses in MM US$ Technical 3,075 4,574 4,329 4,345 4,486 Services Engineering & % Construction Real Estate 68% 2% Infrastructure 16% By type of contract 2,000 2,719 MM US$ 4,170 MM US$ 3,935 MM US$ 3,765 MM US$ 4,038 MM US$ 1.00 Unit Price 20% Cost plus Fee 36% 1,000 Lump Sum 5% - - Backlog Recurrent Businesses Backlog + Rec. Businesses/ Revenues Ratio EPC 38% 12

15 Backlog and Recurrent Businesses (December 2014 December 2015) By type of client By end-market 5% 14% 3% 20% 77% 81% Private Public Concessions 7% 3% 9% 14% 14% 2% 6% 3% 16% 4% 1% 21% 10% 28% 26% Mining Projects Mining Services Oil and Gas Electricity Water and Sewage Real Estate Transport Others 36% Construction/Non-Construction By country 69% 64% 36% 31% Non-Construction Construction 4% 2% 7% 10% 2%1% 15% 72% Peru Chile Colombia Panama Brasil & Guyana Bolivia & Ecuador 87% (*) Outer circle corresponds to December 2015 data, whilst inner circle corresponds to December 2014 data 13

16 Backlog and Recurrent Businesses (US$ in thousand) Company Initial Backlog Executed New Requests Annual Backlog Backlog Total Backlog TOTAL IQ IIQ IIIQ IVQ GyM 975, ,746 1,588,695 50, ,353 1,103, ,286 1,734, , , ,408 Stracon GyM 1,211, , ,724 3,222 10, ,239 51,649 1,147, , , ,977 Vial y Vives - DSD 254, ,704-44,374 45, ,201 4,159 37,831 37, Morelco 349, ,794 1,507-8,484 24,494-64,570 50, ,804 83,296 80,508 0 CAM Peru 49,839 38, , ,867 4,226 11,362 9,250 2,112 0 GMI 43,956 49,430 39,735 11,053 4,911 14,118 9,652 34,261 17,131 17,131 0 Engineering and Construction 2,885,152 1,710,314 1,954, , ,538 1,251, ,039 3,129,431 1,158, ,896 1,002,384 Survial 70,649 37,222-9, , ,205 7,751 8,146 8,309 Canchaque 15,752 2,585 2, ,227 10,353 2,425 2,449 La Chira 15,157 8,202-1, ,308 3,193 1,057 1,057 Linea 1 Metro de Lima 210,086 61,904 63,577 12,221 16,797 17,248 17, ,758 68,609 70,620 72,529 Infrastructure 311, ,913 54,767 12,350 17,517 7,803 17, ,498 89,906 82,248 84,344 Viva GyM 81,362 63,218 92,895 29,495 7,980 61,679-6, ,038 60,858 46,507 3,673 Real Estate 81,362 63,218 92,895 29,495 7,980 61,679-6, ,038 60,858 46,507 3,673 GMD 91,830 74, ,989 19,520 31,645 28,651 22, ,427 53,885 65,542 0 Concar 153,782 98,087 73,047 26,663 5,318 10,987 30, ,742 57,508 39,292 31,943 CAM 400, , ,135-35,565 74,547 87,711 2, , , , ,562 Technical Services 646, , ,171 10, , ,349 54, , , , ,505 Eliminations -109,158-62,184-25,223 4,452-10,823-6,231-12,621-72,196-25,576-23,382-23,237 Total 3,815,286 2,158,684 2,381, , ,722 1,442, ,950 4,037,807 1,532,515 1,281,622 1,223,669 Recurrent Businesses GMP 496, ,086-55,488-53,997 31,342 30,979-63, ,080 99,904 95, ,131 Norvial 110,727 72, ,693 13,244 21,604 64,336 9, ,274 69,811 77,463 0 Eliminations -27,379-50,033-48,771-8,619-12,819-21,185-6,149-26,117-7,231-10,181-8,706 Total 580, ,199 4,433-49,372 40,127 74,130-60, , , , ,426 Total Backlog + Recurrent Businesses 4,395,289 2,294,882 2,385, , ,849 1,516, ,498 4,486,044 1,695,000 1,443,950 1,347,095 14

17 What s Ahead? Corporate Presentation 17 1

18 Infrastructure Pipeline Infrastructure Investment Gap in Peru Proinversión Project Portfolio (*) Health and Education 15% Energy 19% Hidraulic Infrastructure 5% ~US$160 bn investment gap ( ) Water treatment and sewage 8% Telecommunications 17% Transport 36% Toll Roads Project Location Status Mountain Range Longitudinal Road 4 Mountain Range Longitudinal Road 5 Rail Junin, Apurimac, Huancavelica, Ayacucho, Ica Junin and Huancayo-Huancavelica Railway Huancavelica Estimated Investment (US$ MM) Estimated award date Contested Q16 Cusco and Puno Not contested To be defined 4Q16 Contested Q16 Line 3 Lima Metro Lima Not contested To be defined 4Q16 Oil and Gas LPG Supply System for Lima and Callao Electricity Lima and Ica Contested Q16 Quillabamba Termical Station Cusco Contested Q16 Source: Peruvian Association for the Promotion of National Infrastructure (AFIN), Proinversión (10Mar16) (*) Table only reflects most relevant projects that we are evaluating Water treatment Headworks and Water Supply Infrastructure for Lima Logistics Platforms Logistics zone and outer harbor for Callao Port Junin and Lima Contested Q16 Callao Contested Suspended 16

19 Infrastructure Pipeline Private Initiatives presented in 2014 Flowchart of the process of approval Infrastructure projects Water and Sewage 4 projects US$ 1.3 billion Submitted and awaiting reply from Proinversión Proinversión Roads 2 projects US$ 1.7 billion 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 9 PIs presented in 2015 have been admitted 3 PIs presented in 2014 and 1 in 2015 have been declared of relevance for ~US$ 1 bn Admissible Declaration of relevance and priority Development of preinvestment studies Declaration of viability under SNIP Proinversión MEF Proinversión/ MEF MEF Minimum Time Frame: 18 months Roads 3 projects US$ 2.8 billion 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 17

20 Jan-15 Jan-15 Feb-15 Feb-15 Mar-15 Mar-15 Mar-15 Apr-15 Apr-15 May-15 May-15 Jun-15 Jun-15 Jul-15 Jul-15 Aug-15 Aug-15 Aug-15 Sep-15 Sep-15 Oct-15 Oct-15 Nov-15 Nov-15 Dec-15 Dec-15 Jan-16 Jan-16 Stock Performance GRAM- January 29, 2016 ADSs (million) Market Cap (US$ MM) VWAP (3M) (US$) week high (US$) week low (US$) 2.20 Average daily traded volume (3M) (US$ MM) 0.23 S/ S/ S/ S/ S/ S/ S/ S/ GRAMON January 29, 2016 Shares (million) Market Cap (S/. MM) 1,056.1 VWAP (3M) (S/.) week high (S/.) week low (S/.) 1.60 Average daily traded volume (3M) (S/. MM) 0.36 Closing Price 29Ene16: GRAM: US$ 2.20 GRAMON: S/ $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 S/ $0.00 GRAMONC1 GRAM US 18

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

22 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 20

23 Corporate Structure 67.0% 98.1% (1) 88.7% Construction services Toll-road concession Real Estate development IT services 99.9% Toll-road concession 50.4% 99.6% Contract mining services 99.9% Land parcels Operation and maintenance of infrastructure assets Toll-road concession 75.0% Engineering and Construction services in Chile Engineering services Mass transit system concession Water plant concession 75.0% 50.0% Electricity networks services IT services 52.0% Engineering and Construction services for Oil&Gas industry in Colombia O&G production, gas processing & fuel storage 95.0% Highway concession 100.0% 51.0% (1) 38.97% of the share capital in Viva GyM is held by our subsidiary GyM. Operation and maintenance of gas pipelines 21

24 Consolidated Results (S/. in millions) Consolidated Revenues Consolidated Net Profit 9,000 (S/. in millions) 350 (S/. in millions) 8,000 7,000 6, , ,000 3,000 2,000 1,000 4,241 5,232 5,968 7,009 7, Consolidated EBITDA Consolidated Margins 1,200 (S/. in millions) % over Total Revenues 1, % , % 15.3% 16.8% 13.1% 14.9% 13.6% 13.6% 6.8% 5.5% 5.4% 4.3% 10.0% 9.0% % - Net Margin Gross Margin EBITDA Margin 22

25 Consolidated Results Income Statement (Thousands US$) Revenues 1,572,587 2,050,915 2,134,233 2,344,824 2,294,882 Gross Profit 234, , , , ,921 Operating Profit 180, , , ,448 94,379 Financial expenses (2,977) (12,331) (15,451) (15,749) (16,990) Participation in Associates Dividends Perceived ,004 17,881 11,244 Exchange rate difference 696 8,281 (25,185) (14,815) (24,276) Profit before income tax 177, , , ,765 64,357 Income tax (52,446) (60,594) (65,247) (48,911) (22,502) Minority Interests (17,472) (29,909) (32,980) 120,854 (15,754) Net Profit 107, , , ,282 26,101 Depreciation & Amortization 66,090 95,846 92,682 86,999 89,782 EBITDA 250, , , , ,376 Balance Sheet (Thousands of US$) Total Assets 1,369,568 1,957,125 2,257,824 2,586,116 2,639,125 Cash 244, , , , ,321 Financial Debt 196, , , , ,599 Total Equity 538, ,547 1,143,362 1,063, ,608 Financial Keys Gross Margin 14.9% 13.6% 16.8% 13.6% 9.0% Net Margin 6.8% 5.5% 5.4% 4.3% 1.1% EBITDA Margin 15.9% 15.3% 17.3% 13.1% 10.0% Financial Debt /EBITDA Financial Debt /Equity ROE 23.1% 20.6% 12.9% 10.7% 2.8% 23

26 Workforce Total number of employees Since 2011 Total workforce Categories December 2015 (4) 9,641 11,399 13,770 15,841 14,706 Engineers 3,607 Other professionals 1,402 Technical specialists 9,697 Total Employees 14,706 Manual laborers (1) 11,026 Joint operations employees (2) 3,317 Total Collaborators 29,049 Subcontracted employees (3) 3,857 Total 32,906 (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. (4) June 2015 includes Morelco 24

27 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 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 25

28 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. 26

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