The Group achieved Revenues of S/. 1,433.0 MM during 1Q2016, a 15.9% decrease compared to 1Q2015

Transcription

1 Consolidated Results Report First Quarter 2016 April 28, 2016

2 Executive Summary The Group achieved Revenues of S/. 1,433.0 MM during 1Q2016, a 15.9% decrease compared to 1Q2015 Gross Profit amounted to S/ MM in 1Q2016, decreasing 17.3% compared to 1Q2015 EBITDA was S/ MM in 1Q2016, higher by 16.9% than the result obtained in 1Q2015 Net Income registered an increase of 303.1%, reaching S/ MM in 1Q2016 Backlog amounted to US$ 4,033.8 MM and the recurrent businesses amounted to US$ MM, reaching a total of US$ 4,503.9 MM, equivalent to 2.07x the annual revenues CONSOLIDATED QUARTERLY REVENUES (S/. MM) CONSOLIDATED QUARTERLY EBITDA (S/. MM) CONSOLIDATED QUARTERLY NET INCOME (S/. MM) The graphs above, show the Revenues, EBITDA and Net Income by quarter REVENUES BY SEGMENT EBITDA BY SEGMENT NET INCOME BY SEGMENT Note: The Consolidated Results Report presents the accumulated figures as of the first quarter of 1Q2015 and 1Q2016. References made to 1Q2015, 1Q2016 and First Quarter are made to the period of three months from January 2 nd to March 31 th of the corresponding year. Page 2

3 Consolidated Results Revenues. Consolidated revenues reached S/. 1,433.0 MM during 1T2016, a decrease of 15.9% compared to 1Q2015. In terms of Business Segments, revenues in the Engineering and Construction segment decreased 23.0% in 1T2016, contributing with 65.8% of the Group s revenues. The Infrastructure Segment increased in 5.7%, due mainly to an increase in the revenues of Norvial, Line 1 of the Lima Metro and GMP, while the Real Estate Area registered a decrease of 35.9%. Finally, the Technical Services Segment registered an increase of 6.3% Gross Profit. Consolidated Gross Profit decreased from S/ MM to S/ MM, equivalent to a decrease of 17.3% and a Gross Margin of 10.0% in 1Q2016, which is similar to the gross margin of 1Q2015. This is mainly explained by the improved results in the Real Estate Business Area, in spite of the reduction in margin in the Engineering and Construction Area, as well as in the Technical Services Area. In the Infrastructure Area, the Gross Profit has suffered the impact of the decrease in oil price. Operating Income. In the Other Operational Expenses line of 1Q2016, reflects the profit from the sale of machinery and equipment, as well as the liabilities reversal in CAM. In the Profit from sale of investments in subsidiaries line, the profit from the sale of our stake in Transportadora de gas del Perú (TgP) is registered, which also has an impact in the Income tax due to the reversal of the deferred Income Tax. The increase in Financial expenses is a consequence of the increase in the debt of the Gaseoducto del Sur contribution financing. The Participation in Associates account registers the profit generated in projects where subsidiaries have a minority stake and are not consolidated. This number includes mainly the Southern Gas Pipeline stake and the Guyana Project, as well as other minority investments such as COGA, Chavimochic and Adexus. Exchange rate difference. During the first three months of 2016, the Nuevo Sol appreciated against the US Dollar, from S/ per dollar as of December 31, 2015, to S/ per dollar as of March 31, 2016 generating a positive impact. Net Income. Consolidated Net Income was S/ MM in 1Q2016, equivalent to a 303.1% increase compared to 1Q2015. Net margin increases in 1Q2016 mainly due to the sale of TgP, the currency appreciation and the profit from our participation in Gasoducto del Sur Peruano. EBITDA. Consolidated EBITDA was S/ MM in 1Q2016, which represents an increase of 16.9% compared to 1Q2015, explained by the operating results in several Areas, as well as by the sale of TgP. EBITDA Margin in 2015 was 13.2%, higher than the one reported in 1T2015. A further detail of the results is described in the each of the business segments sections. Stable Cash Flows. Regarding stable long term cash flows, during 2015, 53.1% of the consolidated EBITDA was originated from Stable Cash Flows businesses. The EBITDA generated from these businesses allows us to cover the Interest Expenses and General Expenses of the company businesses that not generate cash flows in 0.9 times. Page 3

4 Consolidated Results Backlog. Consolidated Backlog (US$ 4,033.8 MM) and recurrent businesses (US$ MM) reached a total amount of US$ 4,503.9 MM in 2015, slightly higher than the backlog registered by the end of 2015, reaching a Backlog plus Revenues Ratio of 2.07 times. Consolidated Backlog (US$ MM) From the total Backlog of 1Q2016, US$ 1,135.5 MM will be executed during 2016, US$ 1,313.4 MM in 2017, and US$ 1,584.9 MM in 2018 and the following years. From the recurrent businesses, US$ MM will be executed during 2016, US$ MM in 2017 and the remainder in the following years. The recurrent businesses are the Oil and Gas segment and the Norvial toll road are businesses. For further detail of the backlog, please go to the appendix page. Backlog by Business Segment 1Q2015 vs. 1Q2016 Backlog by Sector 1Q2015 vs. 1Q2016 Backlog by Type of Client 1Q2015 vs. 1Q2016 Backlog by Geography 1Q2015 vs. 1Q2016 Capital Expenditures. Capital Expenditures (CAPEX) in 1Q2016 amounted to S/ MM (US$ 68.2 MM). The CAPEX distribution per Business Segment is as follows: Infrastructure represents 15%, Engineering and Construction represents 2%, followed by Technical Services with 4% and finally Real Estate with 0.2%. The remaining of investment corresponds to the contributions made to the Southern Gas Pipeline. Page 4

5 Composition of Indebtedness. Consolidated Financial Gross Debt for 1T2016 amounted to S/. 2,877.7 MM (US$ MM). From the total debt, S/. 1,422.5 MM (US$ MM) correspond to working capital associated to the clients accounts receivables and leasing's for the acquisition of machinery and equipment, S/. 1,069.4 MM (US$ MM) correspond to the debt of infrastructure projects and S/ MM (US$ MM) correspond to financing the contributions of the Southern Gas Pipepline (GSP). The increase in the working capital debt is explained by the contributions in GSP, and by the debt taken for the construction of El Rancho project within the Real Estate Area. On the other hand, the project debt related to infrastructure businesses increased during the year mainly due to the second tranche of the Norvial bond. This is a structured non-recourse debt, with guarantees and cash flows from the project itself. The Debt/Ebitda ratio for this debt is 4.78x. As consequence, Debt/Ebitda ratio for this debt is 3.72x. Maturity of Financial Debt Currency Debt Page 5

6 Engineering and Construction The Engineering & Construction Area registered a decrease of 23.5% in 1Q2016, compared to the amount reported in 1T2015, mainly due the fewer projects under execution in GyM, Vial y Vives- DSD and Morelco. Gross Profit decreased 34.1 % in 1Q2016 compared to 1Q2015, reaching a Gross Margin of 7.0%. This was because of lower margins in Vial y Vives-DSD, Morelco and Stracon GyM. The increase in financial expenses is the result of the increase in working capital in the Area. Moreover, the Engineering and Construction segment registers the profit for the minority participation of GyM in the Guyana project in the line Participation in Associates. The appreciation of the period has generated a profit in exchange rate differences due to net liabilities in dollars of S/. 4.3 MM. The net result of the area was a profit of S/ MM in 1Q2016 which represents a Net Margin of 1.1%, higher than the amount registered in 1T2015. EBITDA was S/ MM in 2015, lower by 34.2% compared to 1Q2015, due to lower operational income. Capital Expenditures. Capital expenditures (CAPEX) for 1Q2016 amounted to S/. 4.0 MM (US$ 1.2 MM), corresponding to the purchase of mining equipment for the mining services contracts. Revenues (Million of S/.) Ebitda (Million of S/.) Net Income (Million of S/.) Backlog. The Engineering and Construction segment reported a Backlog of US$ 2,901.2 MM as of 1T2016, amount that is equivalent to a growth of 12.9% compared to the amount registered in 1T2015 explained by the Southern Gas Pipeline construction contract. The total Backlog will be executed as follows: US$ MM in 2016, US$ MM in 2017 and US$ 1,209.9 MM in the following years. Backlog (Million of US$) Backlog by Type of Contract Page 6

7 Infrastructure The Infrastructure Area reached revenues of S/ million in 1T2015, higher by 5.7% compared to 1T2016. This was mainly due to the increase in revenues of Line 1 of the Lima Metro, the registration of the work progress for the second stage of the Norvial toll road and the construction as revenues, as well as higher revenues in GMP. The increase in revenues in GMP is explained by an increase in the level of daily barrels produced going from 1,617 BPD in 1Q2015 to 2,775 BPD in 1Q2016, due to the start of production of Blocks III and IV in April 2015, and also the processing levels at the Pariñas Gas Plant increased from an average of 30.2 MMCF (million cubic feet) in 1T2015 to 31.7 MMCF in 1Q2016. Gross Profit was similar to the one registered in the first quarter of 2015 in spite of the increase in revenues mainly due to the decline in oil price, going from an average price per basket of US$ 52.3 in 1T2015 to US$ 31.8 per basket in 1Q2016. On the other hand, the accounting registration of advanced works in the construction of Norvial second stage with a lower margin impacted the gross profit of the Area. Financial expenses reported in 1Q2016, were slightly lower than the ones reported in 1Q2015. The impact in exchange differences was lower than 1Q2015, due to the currency appreciation. Net Income was S/ million, which represents an increase of 3.3% compared to 1Q2015, explained by the results described above, reaching a Net Margin of 6.0%. EBITDA for 1Q2016 reached S/ MM, representing an EBITDA margin of 30.9% which was similar to the one registered in 1Q2015. Revenues (Million of S/.) Ebitda (Million of S/.) Net Income (Million of S/.) Capital Expenditures. Capital expenditures (CAPEX) for 1Q2016 amounted to a S/ MM (US$ 10.0 MM) corresponding mainly to the construction of the extension of the Norvial toll road. Backlog. The Infrastructure Area reported a Backlog of US$ MM, and a total of US$ MM of recurrent businesses. Backlog (Million of US$) The total Backlog of the Infrastructure Segment will be executed as follows: US$ 63.2 MM in 2016, US$ 75.2 MM in 2017 and US$ 95.5 MM in the following years. On the other hand, the recurrent businesses will be executed as follows: US$ MM in 2016, US$ MM in 2017 and the remaining amount from 2018 and forward. Page 7

8 Real Estate Revenues in the Real Estate Area increased in 35.9%, mainly due to the sale of land from Almonte in Lurin. The number of housing units delivered in 1Q2016 were 90, while in 1Q2015, 112 units were delivered. There are a total of 14 projects under development, within which the main ones in housing segment are: Parques del Callao, Parque Comas, Parques del Mar, Nuevo Chimbote, Pezet building, El Rancho Project, and a building named Klimt in San Isidro. In the office segment, Real Dos offices and Panorama are also under execution. A total of 79% of the projects are been executed in Lima, whilst 21% of them are been executed in other provinces of Peru. Gross Margin increased from 19.5% in 1Q2015 to 57.5% in 1Q2016, which is mainly explained by the sale of land from Almonte. The impact in exchange rate difference was lower than last year, due to the currency appreciation. The Net Income increased in comparison to 1Q2015, and registered S/. 1.7 MM in 1Q2016 with a net margin of 5.3% EBITDA was S/ MM in 1Q2016, which was higher by 73.8% compared to 1Q2015 reaching an EBITDA Margin of 56.6% which is higher than the one registered in 1Q2015. Revenues (Million of S/.) Ebitda (Million of S/.) Net Income (Million of S/.) Capital Expenditures. Capital Expenditures (CAPEX) in 1Q2016 amounted to S/. 555 thousand (US$ 167 thousand). Backlog. The Real Estate Segment reported a Backlog of US$ MM. The main projects included in the Backlog are El Rancho, Klimt building in San Isidro, Parque Comas, Real 2 Offices, within others. Backlog (Million of US$) The total Backlog of the Real Estate Segment will be executed as follows: US$ 94.2 MM in 2016, US$ 49.3 MM in 2017 and the rest in the remaining years. Page 8

9 Technical Services Revenues for the Technical Services Segment in 1Q2016 were S/ which is higher by 6.3% than the ones registered in 1Q2015. Gross Profit reduced in 21.0% reaching a Gross Margin of 12.2% as a consequence of lower results in the operations of CAM Colombia. In addition, the Other Operational Expenses account, includes the reversion of liabilities related to the acquisition of CAM. The Financial Expenses are similar to the ones registered in 1Q2015. The minority participation of CAM in projects that are not consolidated are reported in the line Participation in Associates. The impact in exchange rate difference reflects a profit of S/. 1.9 MM due to the currency appreciation. Net income for 1Q2016 was S/. 4.1 MM, higher compared to 1Q2015 mainly due to a recovery in Concar and CAM. EBITDA in 1Q2016 was S/ MM, with an EBITDA Margin of 7.7%. Revenues (Million of S/.) Ebitda (Million of S/.) Net Income (Million of S/.) Capital Expenditures. Capital Expenditures (CAPEX) in 1Q2016 amounted to S/. 8.9 MM (US$ 2.7 MM), which mainly corresponds to the electric services and information technology businesses. Backlog. The Technical Segment reported a Backlog of US$ MM. The main contracts awarded during the first quarter of 2016 were for the services of comprehensive operations for Edelnor for US$ 48 MM, as well as an electrical services contract for Electricaribe for US$ 63 MM and finally the contract for the service management and road maintenance of Chuqibambilla for US$ 99.6 MM. Backlog (Million of US$) The total Backlog of the Technical Services Segment will be executed as follows: US$ MM in 2016, US$ MM in 2017 and the remaining in the following years. Page 9

10 Appendix: Profits & Losses Statement per Company Figures in Thousands of S/. Appendix: Balance Sheet per Company Figures in Thousands of S/. Page 10

11 Appendix: Backlog Report to March 2016 Figures in Thousands of US$ Appendix: Recurrent Businesses Report to March 2016 Figures in Thousands of US$ Page 11

12 Appendix: Corporate Structure (1) 38.97% of the share capital in Viva GyM is held by our subsidiary GyM. Page 12

13 Annex: Notes to the Consolidated Results i) EBITDA As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the international market practice for the EBITDA calculation has been adopted. The EBITDA calculation will start from the net income, figure to which the taxes, exchange rate differences and interests expenses will be returned to, whilst the depreciation and amortization will be added. We previously reported the EBITDA calculated as operational income plus depreciation and amortization. As mentioned on the Consolidated Results Report for the third quarter of 2013, we will report EBITDA calculated as follows: Real Estate EBITDA: the proportional part of the land component of the units delivered during the period, will be added; Metro de Lima : the financial expenses considered, as well as the capital amortization applied to the corresponding long-term account receivable during the period, will be added. ii) Backlog As of the information reported in the prospectus regarding the shares issuance registered before the SEC, the reporting method of the company s Backlog will have modifications in the Infrastructure and Real Estate segments according to what is following described. Engineering and Construction and Technical Services will continue to report their backlog according to the local market, therefore the total signed contracts will be reported. Infrastructure: the Oil & Gas business and the Norvial toll road are not included as backlog Real Estate: only the sold units which are pending of delivery are reported as backlog iii) ROE For the ROE calculation in the intermediate quarters, the net profit considered is the one for the last twelve months (LTM) (LTM Net Profit divided by Total Equity) iv) Gross Debt / EBITDA ratio For the Gross Debt/Ebitda ratio calculation, the EBITDA considered is the one for the last twelve months (LTM) (Gross Debt divided by LTM EBITDA) v) Net Debt / EBITDA ratio For the Net Debt/Ebitda ratio calculation, the EBITDA considered is the one for the last twelve months (LTM) (Net debt, equal to Gross Debt minus Cash, divided by LTM EBITDA) Page 13

14 Contacts: Mónica Miloslavich Hart Chief Financial Officer (511) Samantha Ratcliffe Leiva Deputy Investor Relations Officer (511)