Shikun & Binui Q1 17 Results

Transcription

1 Shikun & Binui Q1 17 Results Moshe Lahmani, Chairman Yaron Karisi, CEO Tal Raz, CFO May, 2017 OXEC II, Guatemala; photo: Arik Tapiero 1

2 Disclaimer כותרת ראשית מיליוני ש"ח הקלד טקסט כאן This presentation has been prepared by Shikun & Binui Ltd. (the "Company") as a general presentation of the Company and its financial results. The information included in the presentation and any other information conveyed orally by the Company or on its behalf (all such information as aforesaid or any part thereof - the "Information") is provided for convenience purposes only. The Information does not constitute a basis for investment decision or replace the need for carrying out independent collection of information and הקלד טקסט כאן analysis of the Information, nor does the Information purport to make or give any recommendation and/or opinion and/or to substitute for the independent judgment of any potential investor. Each potential investor is urged to consult with its own advisors. הקלד טקסט כאן This presentation does not constitute an offer or invitation to sell or issue, or any solicitation of an offer to subscribe for or acquire any of the Company s securities or to participate in any investment in the Company. The Company does not warrant the completeness or accuracy of the Information, and it disclaims any responsibility for any damages and/or losses whatsoever resulting from the use of the Information. You must make your own investigation and assessment of the matters contained herein. In particular, no representation or warranty is given, and the Company has no responsibility, as to the achievement or reasonableness of any forecasts, estimates, or statements as to prospects.in case of contradiction or inconsistency between the Information and information recorded in the Company's ledgers and/or appearing in official publications, such recorded information will prevail. Statements in this presentation that are not historical facts (including statements containing "believes," "anticipates," "plans," "expects," "may," "will," "would," "intends," "estimates" and similar expressions) are forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of These statements are not guarantees of future performance, are based on current expectations of future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statement s, including the risk factors referred to and discussed in the Company's financial statements and Management Discussion and Analysis published by the Company. If one or more of these factors materialize, or if any underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from any future results, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements as a prediction of actual results. All forward-looking statements included in this presentation are made only as of the date of this presentation. The Company assumes no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors. The Company assumes no obligation to update any written or oral forward-looking statement made by it or on its behalf or any other part of the Information as a result of new information, future events or other factors. The information included in this presentation relating to third parties (excluding the company) is based on information, documents and/or data delivered to the Company from third parties and this information may be subject to non-disclosure obligations, and is included in this presentation subject to such obligations. The company is not responsible to the readiness, accuracy and/or completeness of this information. This presentation is supplied to you for your own information and may not be distributed, published, reproduced or otherwise made available to any other person, in whole or in part, for any purpose. In particular, this presentation should not be distributed to or otherwise made available to persons where such distribution or availability may lead to a breach of any law or regulatory requirements. 2

3 Continued Implementation of Global Strategy Moshe Lahmani, Chairman 3 SH-288, Texas, USA; Photo: Arik Tapiero

4 Expansion of O&M and Services Operations, and Strengthened IGA Base Development Construction Operation & Maintenance * KBP Building Student Dorms Roads Operator Etgal Nevatim PV Carmel Tunnels IGA and O&M - significant volume of activity Operations across all phases of a project s life-cycle - Synergy Utilization Design + Mall Northern Lanes Ir Yamim Mall Strategic Target - considering partial divestments as part of ongoing business, continued holdings of IGAs & O&M Policity North Gate Mall Cundinamarca Toll Road Creation of a steady profit base & stable cash flow, managed risk profile * Selected assets 4

5 Progress in Implementation of Go West Strategy - Impressive Presence in US Defining Strategy First Win of Mega Project Go West SH-288 Managed Lanes in Houston Texas, total financial scope ~ USD 1bn Financial Close & execution commencement; Grow West & Beyond - Shortlisted in a Mega Project & Key Pipeline Sh-288 among 5 largest projects to reach financial close in 2016 Flood Diversion, North Dakota I-55 Managed Lanes, Illinois Grand Prairie Irrigation Project, Arkansas I-35 Managed Lanes, Texas Desalination Project, Texas Higher Eduaction Projects - Student Dorms 1) Source -US Market Continues to Reach Maturity, InfraAmericas (Dec. 2016) 2) This list includes projects and initiatives that are currently at various stages of evaluation by the Group s segments, either independently or with partners, some of which have entered the tender process and others of which are in development. There is no certainty that the Company will move forward with any of them, or if it does, that it will win them. 5

6 Strategic-Economic Approach to Our Activities Building Blocks Construction קבלנות Residential Real Estate Projects & IGAs Infrastructure & Construction - Israel Infrastructure & Construction - International Residential Real Estate Development - Israel Residential Real Estate Development - Europe Concessions ADO Renewable Energy Commercial Property 6

7 Significant Execution and Strong Business Development Yaron Karisi, CEO 7 Ashalim, Israel; Photo: Gilad Kavalerchik

8 Q Strong Execution, Progress in Biz. Dev. 1. Strong revenues with improving operational parameters 2. Ongoing revenues from the PFI / North Roads projects (sold 40%) 3. Winning of new Concessions project in Israel Q1 Revenues - NIS 1.8bn Q1 EBITDA - NIS 238m Pre-tax profit - ~NIS 64m Cash flow - ~NIS 65m Government campus in Nazareth Court in Hadera 4. Progress with Renewable Energy activities 5. Strong activities in Nigeria; entry into new countries in Africa 6. High apartment sales rate in Europe and moderate in Israel Winning of new PV tenders Q1 Revenues from Nigeria ~ $ 60m Q1 units sold: ~460 Progress Ze elim and Etgal projects Won tenders in Mozambique & Tanzania Including ~290 in Europe Increase operation in Ivory Coast 8

9 Q Significant Rise in Revenues, Continued EBITDA Improvement Q1 revenues grew by ~62% (YOY) to NIS 1.8bn NIS millions Revenue EBITDA Net Profit 1, , Q1'16 Q1'17 Q1'16 Q1'17 Q1'16 Q1'17 1 Including profit of NIS 87m from divestment of OMIS (O&M of Hadera desalination plant) 9

10 Backlog as of March 31, 2017 ~NIS 15.6bn Does not include ~NIS 2.7bn in additional projects that have been won NIS millions Backlog Development Geographical Distribution of Backlog as of 31/03/17 16,251 16,488 15,636 4% 12,079 10,417 13,197 11,122 13,737 13,585 12,457 2% 18% NIS 15,636m 53% Israel Nigeria East Africa Americas 23% Other 2,410 2,703 2,030 1,514 1, /12/13 31/12/14 31/12/15 31/12/16 31/03/17 The backlog as of 31/03/17 does not include ~NIS 2.7bn 1 in additional construction projects that have been won until this day or after 2 The backlog does not include expected income from energy and concession projects Projects & IGAs Real Estate Development Construction Total Backlog from consolidated companies; backlogs from consolidated companies in Real Estate Development and IGA s are insignificant 1 Includes construction of an airport in Uganda estimated approx. NIS 1.1bn; subject to funding 2 Not including project-execution of projects carried out during the period up to the date of this report 10

11 Progress in Renewable Energy Projects, Concession Wins, Growth in ADO Projects and IGA s 1. Progress with Renewable Energy activities Won Israel Electric Authority PV tender for MW 65 Tze elim PV MW 120 received tariff guarantee & building license 1 ; in process of Financial Closing 2. New partner in PFI North Roads project (sold 40%) Pre-tax profit - ~NIS 64m Cash flow - ~NIS 65m 3. Winning of new Concessions projects Government campus in Nazareth - ~NIS 400m 4. Continued growth of ADO s activities in Berlin Court in Hadera - ~NIS 150m Construction for both projects to be carried out by Solel Boneh Continued expansion of the portfolio in Berlin Buy-back transaction totaling ~NIS 50m 1 1 April

12 Construction Global Construction - Strong Execution in Nigeria, Expansion into Other Countries Israel - substantial execution MEGA projects in execution - Ashalim, Tel Aviv Light Rail, Gilboa Pumped Storage, Mesilot project, Generi II Scope of projects in progress - NIS 7.3bn 1 Execution - Carried out work valued at ~NIS 1,060m Expansion into Additional Countries Have recently received notice of 2 new road project wins in new regions (not yet included in the backlog) Tanzania - ~$ 50m 3 Mozambique - ~$ 10m Execution in the WEST Continued executions in USA, Colombia and Guatemala Backlog in the Americas as of 31/03/17 - ~ $ 2.8bn Nigeria - Significant Execution & Collections Execution - Carried out work valued at ~$ 60m Collections - ~$ 58m collected from January-April 2017 Official exchange rate (CBN) - ~305 naira per USD 2 1 including partners 2 A further unfavorable fluctuation could impact the Company s results 3 had projects there in the past Works in Ivory Coast; photo: Arik Tapiero 12

13 Significant Execution on Mega-Projects - Totaling approx. NIS 14bn Construction Gilboa Pumped Storage, Israel - ~NIS 1.5bn Ashalim Thermo-Solar, Israel - ~NIS 3.1bn Tel Aviv Light Rail, Israel - ~NIS 3bn Cundinamarca, Colombia - ~NIS 1.6bn SH-288, USA - ~NIS 3.2bn Shagamu-Ibadan, Nigeria - ~NIS 1.3bn Note: projects presented according to 100% (includes partner s stake) 13

14 Residential Real Estate - Q1 Sale rate of ~460 Units Continued growth in development activities in Europe with a focus on Poland Residential Real Estate RED - Rapid Pace Continues in Europe Sales, # of residential units (100%) Sales, # of residential units (100%) Shikun & Binui Real Estate (Israel) - Pace of Activities In Line With Market 1,070 1, Serbia Romania Czech Republic Poland Q1' Q1'17 14

15 Key Financial Data Tal Raz, CFO 15 Pumped Storage, Israel. Photo: Albatros

16 Significant revenues with improvement across primary operational parameters NIS million Income Statement - Highlights Distribution by Business Segments Revenues Q1 17 1,805 Q1 16 1,114 16% 4% Gross profit % Gross margin Operating income 10% % 162 NIS 1,805m % Operating margin Net profit 10% 68 15% 93 80% EBITDA Construction Residential Real Estate Projects and IGA's 16

17 Decrease in cash balance due to investments in inventory of lands, concession arrangements and energy projects & investments in short-tem deposits Q1 Cash Flows - Highlights Bridge of Q1 change in cash NIS million NIS million Q1 17 Q1 16 Operating activities - net of investments in inventory of lands, concession arrangements and energy projects Operating activities (397) (698) (189) (364) (445) (378) (185) Investing activities (438) 181 2,993 Financing activities Others 202 (75) (60) (36) 1,985 Increase (decrease) in cash & equivalents (1,008) (279) Cash & equivalents 1,985 1,609 Cash & Investment in Construction in Construction Cash & equivalents as of short-term Israel (execution abroad (execution equivalents as of deposits and vs. advanced vs. advanced financial assets payments) payments) 17

18 Stable Balance Sheet - NIS 2bn in Cash, 60% Current Assets, 67% of Assets in Israel Total Assets Geographic Distribution By Segment Cash & Cash Equivalents NIS millions, as of By geographic region, in % as of By activity, in %, as of NIS millions, as of ,226 1,985 3% 7% 12% 3% 1,868 1,854 NIS 14,912m 18% Cash 60% Current Assets 6,979 14% 9% 67% of Assets Located in Israel - Just 9% in Nigeria 67% 8% 32% 47% Inf. & Con. 42% R.E. Dev. 1 12% Projects & IGAs 29% 18% ~NIS 2bn including NIS 69m (3%) in Nigeria 97% 18% cash & cash equivalents 42% other current assets 12% land 13% long-term investments and loans 15% other long-term assets 67% Israel 9% Nigeria 14% Rest of Africa (not Nigeria) 3% Americas 7% Europe & ROW Global Building & Infrastructure Building & Infrastructure in Israel Israel Real Estate Development Global Real Estate Development Concessions, Renewable Energy & other Nigeria Other In addition, there is a balance of NIS 137m in Interest-bearing financial assets in Nigeria Lands, commercial real estate and investment in ADO are presented according to historical cost, not Fair Value 1) Including Commercial Real Estate book value totaling NIS 821M 18

19 Debt Position - Extension of Bond Repayment Schedule, Rise of Credit Rating NIS millions, as of 31/03/17 דירוג אשראי: Successful Issue & Extension of Bond Repayment Schedule Primary balance sheet items as of Expansion of Series 8 (duration 7.1) totaling NIS 350m The Company s average bond maturity period is 5.5 years as of Future bond principal payments by year: 1,515 Cash & equivalents NIS 1,985m Net credit balance NIS 4,155m Non-recourse credit from PPP projects NIS 416m Credit balance net of credit from PPP projects NIS 3,739m onwards Upgrade of credit rating to Positive Credit ratings: S&P Ma alot - ila, upgrade outlook to Positive Moody s Midroog - A1 with a Negative outlook 19

20 Thank you. La Maquina, Guatemala; photo: Arik Tapiero IR Contact: Inbal Uliansky Tel

21 Appendix Construction - Backlog NIS millions 2012-Q1 17 as of March 31, 2017, by region The backlog does not include additional projects valued at ~NIS 2.7bn that the Company has won 13,737 13, ,457 9,560 7,059 10,304 7,465 11,056 8,150 8,588 7,824 6,986 3,582 NIS 12,457m 5,471 5,149 5,761 5,471 2,501 2,839 2,906 2,776 Israel Americas Nigeria 31/12/12 31/12/13 31/12/14 31/12/15 31/12/16 International Israel Total construction 31/03/17 RoA Other Note: After the devaluation, the Nigerian backlog was adjusted to reflect the new dollar/naira exchange rate * Includes forward-looking information as defined in the Securities Law of

22 Appendix Construction - Revenues NIS millions 2012-Q1 17 For Q1 17 by region 4,839 4,834 4,793 4,146 4,401 1, ,718 3,121 1,954 2,880 2,146 2,647 2,158 1,988 2,769 1, NIS 1,586 m 1,061 1, Q1'17 Israel Americas Nigeria RoA International Israel Total construction 22

23 Appendix Construction - EBITDA NIS millions 2012-Q1 17 For Q1 17 by region NIS 132m Q1'17 International Israel Total construction Israel Americas Nigeria RoA 23

24 Appendix Construction - Net Profit NIS millions 2012-Q1 17 For Q1 17 by region NIS 58m Q1'17 International Israel Total construction Israel Americas Nigeria RoA 24

25 Appendix Residential Projects in Israel Apartments constructed, sold and delivered per year, S&B share Q1'17 Construction Sales Deliveries 25

26 Appendix Residential Projects in Europe Apartments constructed, sold and delivered per year, S&B share Q1'17 Construction Sales Deliveries Note: Data includes both consolidated and unconsolidated projects 26