E A R N I N G S 1Q2017 R E L E A S E. May 10, 2017

Transcription

1 E A R N I N G S R E L E A S E 1Q2017 May 10, 2017

2 Relevant corporate events 1Q 2017 Investment $ Eliminations $(8.641) Consolidated Income from Ordinary Activities March2017 COP mill $ Corporate $2.239 $ % Investment $ Eliminations $(2.074) March2016 COP mill $ Corporate $1.620 $ Revenues COP mill Revenues COP mill Equipment $4.207 $ $ Engineering & Design $ % Equipment $3.802 $ $ Engineering & Design $622 Subsidiaries $53 Industrial CC $438 $ $2.112 $1 Investment Revenues COP mill Fund Other RE assets 5% Subsidiaries $11 Industrial CC $ $133 $2.399 $89 Investment Revenues COP mill Fund Other RE assets Conconcreto / Services / / Investments 2

3 Relevant corporate events Corporate $(9.937) March2017 COP $ mill Investment $ $ Consolidated EBITDA $ % Corporate $(9.378) March2016 COP mill Investment $ $ $ Q 2017 EBITDA Construcción COP mill EBITDA Construcción COP mill Equipment $2.209 $ Engineering & Design $902 $5.727 Equipment $4.703 Engineering & Design $(398) $ $6.654 Fund $262 Industrial CC $3.184 $3.391 EBITDA Inversión COP mill PACTIA $ Subsidiaries $ % Fund $12 Subsidiaries $(34) EBITDA Inversión COP mill PACTIA $8.584 $6.985 Industrial CC $3.035 Conconcreto / Services / / Investments 3

4 Relevant corporate events Backlog March 2017 Cutoff The Company s backlog as of March 2017 is COP 2,8 trillion, corresponding for 2,5 years of operation. Of this Backlog 70% corresponds to infrastructure projects, 17% for building projects and the remaining 13% to the housing portfolio. Historic Backlog Backlog Execution COP Thousands of Millions $1.100 $1.300 $1.900 $2.000 $1.900 $2.551 $3.133 $ % % % $923 $843 $509 $314 $199 $ mar17 aprdec Services : The execution concentrated in projects such as: Ituango Hydroelectric Plant, land movement of SPIA Aguadulce Port, connection road Puerto de Barranquilla, Túnel Piloto de La Línea termination, Arroyo Bruno watercourse Cerrejón, Boscoal dock, FacaLos Alpes concession works, among others. $ COP Millions $ $ $ Among the works contracted stands out the extension of the contracts of Vía 40 Express by COP $ mill, Vía Pácifico by COP $ mill and others by COP $4.000 mill Contracted Executed 1Q2017 Conconcreto / Services / / Investments 4

5 Services : The execution of Works for third parties continue, such as: Multiplaza La Felicidad shopping centre (Bogotá), Corferias hotel (Bogotá), Estelar hotel (Cartagena), EPSA (Valle del Cauca), Guatapurí II shopping center (Valledupar) and the Medellín Chamber of Commerce, among others. Also, works for Pactia continue, such as: Buró 25 stage II (Bogotá) and El Ensueño, Hilanderías and Antares shopping centers (Bogotá). $ COP Millions $4.151 $ As of works contracted, there are principally the extension of the contracts of Guatapurí stage II shopping center and others by COP $4.200 mill. $ : 2016 Contracted Executed 1Q2017 The execution of COP $ mill is still concentrated in the projects located in Colombia and Panama. As of works contracted stands out the extension of the contracts of Pontenovo (Bogotá) by COP $ mill, Maui (Panama) by COP $3.500 mill and others by COP $2.300 mill. Engineering and Design: The workshop continues developing projects under BIM technology in Costa Rica, Panamá and Colombia COP Millions Innovation and sustainability: In 2017, we continue working on the implementation of different technologies in our Company, which is why the business unit Industry 4.0 continues to be promoted with the development of different projects. A mobile application was developed to record the different safety, quality and socioenvironmental findings on site. Additionally, a project of photogrammetry with Drones is being developed and the printing of different pieces with the largescale 3D printer continues. $ $ $ $ Contracted Executed 1Q2017 In innovation at Conconcreto we continue to promote the culture of innovation in each of our collaborators, which is why we started with the Innovative Route 701 of Ideas Que Valen where we expect to have the participation of the different areas and projects of the organization with ideas oriented to optimize time and cost in the different processes. Conconcreto / Services / / Investments 5

6 Current status of concession projects: Road PPP Vía Pacífico (Buga Buenaventura): Preconstruction activities continue. Financial closing in process. PPP Vía 40 Express (Bogotá Girardot): Finishing the first priority intervention Works. Financial closing in process. PPP Doble Calzada de Oriente (Palmas Tablazo): Private initiative presented by Devimed S.A. Feasibility studies will be presented to the Gobernación de Antioquia during the month of July, PPP Vía El Santuario Doradal: Private initiative presented by Devimed S.A. Waiting on the signature of the amendment between Devimed and the ANI. Rail PPP Regiotram Línea de occidente: Continue the negotiations with the ANI for the selling of the studies and designs of Regiotram. Port Darien International Port: Project under study. Environmental license procedures continue, to subsequently obtain the port concession. Energy Generation Medellín Caño Alegre and Malla Vial de Oriente Starting date: June, 1996 Toll Cocorna Puerto Triunfo Guarne Palmas TOTAL (COP Millions) Operational Revenues Minimum guaranteed revenue (MGR) in operation: DEVIMED: Finishing date: December, 2026 Average Daily Traffic: % Conconcreto Participation: 24,85% 1Q2016 1Q Financials 2016** Revenue above MGR Intangible asset pay off (7.566) (11.784) EBITDA Q *Percentage of revenues that pays off the financial asset in the balance sheet **This concession made the COLGAAP to IFRS transition in Dic2016. CCFC: Bogotá Los Alpes Starting date: Finishing date: % Conconcreto Participation: June, 1995 March, % Average Daily Traffic: Toll 1Q2016 1Q2017 Corzo Río Bogotá TOTAL Financials PCH Patico: Continue the negotiation with the indigenous people. Scheduled restart date of construction: 4Q2017. (COP Millions) Operational Revenues Toll collection revenues ANI surpluses EBITDA Conconcreto / Services / / Investments 1Q2016 1Q (4.830) (5.039)

7 Private equity fund Participation in Pactia PEF*(%) 44% Mar17 Mar16 Var. % Gross Income % Operating Costs (Opex) % Net Operating Income % Consolidated EBITDA % Net Profit % 10% 40% 56% 51% dec16 mar17 Conconcreto Grupo Argos Protección *Private Equity Fund RELEVANT EVENTS The remaining 50% of the Antares shopping center was acquired, thus increasing the GLA of the portfolio by 15,819m2. The first project in the US started with the purchase of a land in Miami for the development of a realestate complex, following the internationalization strategy of the company. Industrial 39% Industrial 39% GLA Mar m 2 in operation Office Hotels 13% 3% Selfstorage 4% NOI Mar2017 COP mill Office 13% Hotels 3% Retail 42% Selfstorage 4% Retail 42% At the closing of March 2017, there are 14 projects under construction and 4 on presale, concentrated in Bogotá, Medellin, Barranquilla and Panamá city. There are 546 units for sale, which are expected to be sold in a 10,3 month period as of todate. During the 1Q2017, 104 units were notarized out of the that are expected to be registered in Additionally there are 6 projects under feasibility study which represent units that will be developed in stages. Launched units for selling and estimated time to market 9, , ,39 28 VIS* middle Number of Units *Lowincome housing high Time (months) Conconcreto / Services / / Investments 7

8 Financial Results of Mar2017: Consolidated statement of results: Reduction in the GROSS PROFIT due to displacement of income from construction projects and the delay in the notarization of deeds from housing projects. The growth in OTHER INCOME is associated with higher reimbursements and recoveries from construction projects, also due to the compliance of currency hedges taken by infrastructure projects. Lower ADMINISTRATION AND SALES EXPENSES because last year portfolio provisions related to some projects were registered. Although EMPLOYEE BENEFIT EXPENSES grew 16%, by this year we begun to manage the backoffice of Via 40 Express, whish is reembursed through the income of ordinary activities. The increase in OTHER EARNINGS corresponds to the recognition of profits from the PACTIA Private Equity Fund, which last year, by being a Trust Fund (joint venture) was reflected in Equity Method. A reduction in FINANCIAL INCOME for lower surpluses and less invoice of interest to consortia. Growth of the FINANCIAL EXPENSE, due to an increase in rates (+94 bps) and greater indebtedness (+ COP mill). Lower income from the EQUITY METHOD originated by PACTIA: Pactia Management Society PACTIA Trust PACTIA Private Equity Fund Dividends TOTAL Real March Real March Variation Greater EBITDA from greater income reported by the PACTIA Private Equity Fund. Consolidated statement of financial position: (7.881) Accounting Record Income Equity Method Income Equity Method Other Earnings Ordinary Income +170% CONSOLIDATED STATEMENT OF RESULTS mar17 mar16 COP Million Variation $ % Income from ordinary activities ,1% Cost of sales ( ) ( ) ,7% Gross Profit (6.801) 15,9% Other income ,6% Administration and sales expenses (9.832) (12.810) (2.978) 23,2% Employee benefit expenses (14.905) (12.876) ,8% Other expenses (2.605) (1.574) ,5% Other earnings (losses) Operating Profit ,7% Exchange difference (456) (4.382) ,6% Financial Income (4.496) 51,2% Financial Expenses (23.599) (18.333) ,7% Equity method (9.307) 64,6% Before Tax Profit ,4% Current tax expenses (4.505) (4.951) (446) 9,0% Adjustment for deferred taxes (2.091) (4.653) (2.562) 55,1% Minority interest 67 (118) (186) 157,0% Net Profit ,5% EBITDA , % Margins mar17 mar16 Gross 11,3% 14,2% Operating 11,2% 5,7% BeforeTax 6,6% 5,8% Net 4,6% 2,6% EBITDA 16,4% 15,1% STATEMENT OF CONSOLIDATED Variation FINANCIAL POSITION mar17 dec16 COP Million $ % Current Assets (85.295) 5,1% Noncurrent Assets ,5% Total Assets (61.319) 1,9% Current Liabilities ( ) 12,5% Noncurrent Liabilities ,5% Total Liabilities (51.494) 2,7% Total Equity (9.825) 0,7% There are significant variations in the liabilities shifting $ mill from current to noncurrent liabilities, following the credit novation strategy. FINANCIAL LIABILITIES COP Million mar17 dec16 Var $ Var % From the $ mill of FINANCIAL DEBT, the liabilities associated to Consortia, Subsidiaries and amounting COP mill, is covered by each of them. The operation should only cover the debt associated to the construction business, the corporate and the investment segment (14.593) 5,67% Investment ,87% ,07% Corporate (8.452) 53,07% TOTAL (12.383) 1,34% For more information, Click here to consult the notes to the consolidated Financial Statements Conconcreto / Services / / Investments 8

9 Indicators and Covenants * Administrative covenants for monitoring and control. Net Financial Debt/EBITDA Objective: Lower than 4x 0,98 1,65 1,82 dec15 dec16 mar17 Net Financial Debt/EBITDA Goal EBITDA/Net Financial Expenses* 2,90 3,89 Objective: Higher than 3,6x 3,45 dec15 dec16 mar17 EBITDA/Net Financial Expenses Goal *Net financial expenses = financial expenses financial income. 9,25% 6,77% 5,79% Cost of debt 10,96% 10,86% 7,51% 6,97% 5,75% 4,69% Mar2017 CPI IBR Average cost of debt CC Conconcreto / Services / / Investments 9