GRAÑA Y MONTERO. Corporate Presentation

Transcription

1 GRAÑA Y MONTERO Corporate Presentation July 2018

2 Business highlights

3 Grupo Graña y Montero at a glance Largest Engineering & Construction company in Peru measured by revenues Shareholders June years of recognized operational excellence and significant international experience AFPs 26% Executives and Former Executives 33% Revenues of US$ 1,874 MM and EBITDA of US$ 302 MM in 2017 Backlog and recurrent business of US$ 2,973 MM as of December x revenues 2,996 engineers and over 30,000 employees Listed in the NYSE since July 2013 Others 21% Executives and former Executives GH Holding Group: 17.81% Bethel Enterprises Inc. (Carlos Montero, Director): 5.12% Mario Alvarado (former Director and former CEO): 3.16% Hernando Graña (former Director): 2.35% ADSs Program 21% Other Executives and former Executives: 4.44% Corporate Presentation 1

4 Our Business Segments Largest E&C company in Peru Leading infrastructure concessionaire in Peru Largest apartment building developer in Peru Electricity Networks Services 2Q 18 Revenues by business segment 2Q 18 EBITDA by business segment 2Q 18 Net Income by business segment 6% 13% -8% 35% 74% 195% 22% 0% -66% 37% 14% -21% 0% 5% 10% 15% 20% 25% 30% 35% 40% Ingeniería & Construcción Servicios Infraestructura Inmobiliaria -20% 0% 20% 40% 60% 80% Ingeniería & Construcción Servicios Infraestructura Inmobiliaria -100% -50% 0% 50% 100% 150% 200% 250% Ingeniería & Construcción Servicios Infraestructura Inmobiliaria Engineering & Construction Infrastructure Real Estate Technical Services 2

5 Millares Engineering and Construction Main companies: GyM: Construction company, founded in 1933, comprised of three divisions: electromechanic construction, civil construction and building construction. GMI: Engineering consulting firm since 1984 consisting in two different divisions: Supervision & Engineering and Geomatics. Vial y Vives- DSD: E&C company formed from a merger between two Chilean companies, Vial y Vives and DSD Construcciones y Montajes. Morelco: Colombian company acquired in 2014, specialized in electromechanical assemblies, civil works, and services for the oil and gas industry as well as energy industry. New contracts during 2018: Quellaveco (US$ 52.5 million) Talara Refinery (US$ million) Minera Escondida (US$ 35.7 million) Revenues and EBITDA (S/. in millions) 5,829 6, ,036 4,160 4, , ,000 4,000 3,000 2,000 1, Q 18 Revenues EBITDA * On April2018, we sold our 87.59% interest in Stracon GyM 3

6 Millares Infrastructure Main companies: Revenues and EBITDA Norvial: Concessionaire of Red Vial 5 Highway Survial: Concessionaire of 1st Tranche of theinteroceanic Highway Concar: Operation and maintenance of infrastructure assets. It operates more than 5,000km of Peruvian roads and highways, including three private concessions, in addition to the Lima Metro Canchaque: Concessionaire of the Bs As-Canchaque Highway La Chira: Concessionaire for the construction, operation and maintenance of a waste water treatment plant for Lima 1,500 1,300 1, (S/. in millions) 1,249 1, , , , Ferrovías GyM: Concessionaire of Line 1 of the Lima Metro GMP: Oil production (Blocks I, III, IV, V), gas processing plant & operation of Q fuel terminals in Peru Revenues Adjusted EBITDA 4

7 Millares Real Estate Viva GyM: Real estate development company Revenues and EBITDA (S/. in millions) Affordable Housing Projects under execution: Parques del Callao, Parque Comas, Parques de Huancayo Housing Projects under execution: Edificio Klimt (San Isidro), Paul Harris and Pezet Q Revenues Adjusted EBITDA Q 2018 *On May 31, 2018, we sold 420 ha of Almonte land. Units delivered 1, , Units sold 1, ,720 1,

8 Financial Performance

9 Consolidated Results (S/ in millions) Consolidated Revenues Consolidated Net Profit ,968 7,009 7,583 6,190 6, Q , Q 2018 Consolidated EBITDA Consolidated Margins % over Total Revenues 17.2% 16.8% 13.6% 13.0% 9.2% 9.0% 16.1% 13.3% 11.1% 10.6% 1, % 8.1% 4.3% 0.4% 2.4% 0.1% Q % % Q 2018 Margen Neto Margen Bruto Margen EBITDA 7

10 Financial Debt Maturity of Gross Debt 2Q 18 (US$ in thousand) Less than Between 1 Between 2 More than 1 year and 2 years and 5 years 5 years Total Other loans 280,852 60,677 95,610 14, ,610 Leasing 10,590 5,681 4,603-20,874 Ferrovías & Norvial Bond Issue 11,085 9,821 24, , ,542 Total 302,527 76, , , ,026 CHUBB Debt 6, ,805 Total debt S/. 309,332 76, , , ,831 Debt by Business Area 2Q 18 Debt by Currency 2Q 18 Holding 25% Engineering & Construction 14% Chilean peso 6% Colombian peso 2% Services 7% Real Estate 6% Infraestructure 48% US Dollars 36% Soles 56% 8

11 Composition of Indebtedness (US$ in thousands) 2Q2017 3Q2017 4Q2017 1Q2018 2Q2018 Working Capital + Leasing 344, , , , ,322 Project Finance 335, , , , ,603 Financing associated to GSP 173, , , , ,575 Total banking debt 853, , , , ,501 Debt from dividend monetization 42,525 Total financial debt 853, , , , ,026 CHUBB Debt 21,679 20,249 15,640 15,640 6,805 Total 874, , , , ,830 Contugas Account receivable (17,477) Amortization from dividend monetization (27,299) Total Debt 722,054 9

12 Backlog and Recurrent Businesses (US$ in mm) Total Backlog + Recurrent Businesses By segments Technical Services 16% 4,000 3,197 3,182 2,973 2,600 Engineering & 2,451 3% 3.00 Real Estate Construction 34% 3,000 2, ,602 2, , , , Infrastructure 47% 1, Q17 3Q17 4Q17 1Q18 2Q By type of contract (Only E&C) Lump SUM 25% Backlog Recurrent Bussinesses Backlog + Recurrent Businesses/ Revenues Ratio EPC 57% Unit Prices 18% 10

13 Backlog and Recurrent Businesses (June 2017 June 2018) By type of client By end-market Concessions 27% Concessions 40% Transport 26% Others 2% Mining Projects 3% Mining Services 23% Transport 29% Others 3% Mining Projects 7% Public 10% Private 62% Public 4% Private 56% Real Estate 9% Electricity 11% Oil and Gas 25% Real Estate 6% Water and Sewage Electricity 0.2% 14% Oil and Gas 40% By country Chile 9% Colombia 12% Others (Panamá, Bolivia) 1% Chile 18% Colombia 7% Peru 77% Peru 75% Corporate Presentation 11

14 Backlog and Recurrent Businesses (US$ in thousands) Company Initial Backlog Executed New Requests Annual Backlog Backlog Total Backlog TOTAL 1Q Q GyM 456, , , ,501 7, , , , ,000 VIAL Y VIVES-DSD 81,464 18,080 39,619 3,249 36, ,003 56,880 45, MORELCO 190,570 40,688-37,384-37, ,498 35,749 76,748 0 CAM PERU GMI 44,351 21,795 38,833 23,714 15,119 61,389 30,997 29, ENGINEERING & CONSTRUCTION 772, , , ,291 58, , , , ,013 SURVIAL 41,545 6,865 4,515 2,279 2,236 39,195 17,227 8,733 13,235 CANCHAQUE 13,138 5,484 2,695 1,170 1,524 10,348 3,514 2,675 4,159 LA CHIRA 3, , ,011 1,762 GYM FERROVIAS 280,711 93, ,447 62,846 46, ,011 45, , ,059 CONCAR 206,352 55,116 54,891 27,710 27, ,126 52,889 57,602 95,635 INFRASTRUCTURE 544, , ,238 94,370 77, , , , ,850 VIVA GYM REAL ESTATE 25,925 43,848 86,149 48,395 37,754 68,226 42,453 25,773 0 ADEXUS 77,249 41,502 38,209 14,896 23,313 73,956 24,992 25,870 23,094 CAM 382, ,901 99, ,174-22, , , , ,915 TECHNICAL SERVICES 460, , , , , , , ,008 Eliminations -99,198-18,307-35,852-28,627-7, ,743-38,433-34,448-43,862 TOTAL 1,704, , , , ,344 1,808, , , ,010 Recurrent Businesses Company Initial Executed New Requests Annual Total Backlog TOTAL 1Q Q GMP 465,300 82, ,776 72,675 55, , , , ,862 NORVIAL 142,724 25,163 32,298 20,481 11, ,859 22,880 47,866 79,113 Eliminations -22,964-58,220-53,723-21,231-32,492-18,467-3,984-9,738-4,744 TOTAL 585,060 49, ,351 71,924 34, , , , ,231 TOTAL 2,289, , , , ,771 2,450, , , ,241 12

15 Appendix 8 :0 4 1 / Appendix /2 1 /1 2 1 / t n e m cu Do 15 d ve

16 Corporate Structure 89.41% 18.20% (1) 99.54% (2) 73.16% 99.54% (1) 98.24% 99.99% 50.45% 50.45% 100.0% 94.49% 99.96% 70.00% 99.98% 75.00% 50.00% 95.00% 99.99% (1) In June 2018, Graña y Montero transferred economic rights over 48.8% of the share capital of Norvial S.A. The company continues to possess voting rights over Norvial.S.A. (2) 36.10% of the share capital in Viva GyM is held by our subsidiary GyM. 14

17 Results by Business Area Income Statement (Thousands of S/.) Engineering & Construction GYM GMI GMP NORVIAL SURVIAL Infrastructure Revenues 848,758 71, ,314 82,383 22, ,450 17,955 1, ,964 1, , , ,023 GROSS PROFIT 24,325 10,525 61,750 25, ,990 2, , ,059 13,969 16,324 Administrative expenses (56,581) (7,985) (9,824) (3,061) (1,446) (9,826) (853) (34) (5,361) (118) (9,147) (19,422) (27,523) Other income and expenses, net 8,917 4 (15) 1 (2) (1,118) (2,768) (1,977) Profit (losses) from sale of investments 41, OPERATIONAL INCOME 18,555 2,544 51,911 22,755 (1,022) 10,166 2, , ,794 (8,221) (13,177) Financial (expense) income, net (18,293) (573) (6,145) (11,839) 261 (190) 1 (10) 9, (9,396) (5,424) (7,831) Participation in Associates (4,522) Exchange rate difference (9,160) (89) (884) (664) (1,879) 2 1,094 (279) (2,413) PROFIT BEFORE INCOME TAX (13,421) 1,882 45,591 10,926 (459) 9,312 2,132 1,142 55, ,492 (13,925) (22,686) Income tax (1,965) (653) (13,564) (2,542) 35 (3,799) (561) (336) (16,788) (177) (1,837) 3,486 4,476 Profit from discontinued operations 8, Non-controlling interest (1,884) (133) (2,531) (2,767) 0 66 (1) (0) (9,600) - (7,632) - 4,419 NET INCOME (8,678) 1,096 29,496 5,617 (424) 5,579 1, ,799 (57) (2,977) (10,438) (13,791) CONCAR CANCHAQUE VESUR GYM FERROVIAS LA CHIRA Real Estate VIVA GYM Technical Services ADEXUS CAM EBITDA 39,472 3,860 91,846 42,565 (939) 12,870 2, , , (1,833) ADJUSTED EBITDA 81,382 40,043 15

18 Workforce Workforce Q 18 Employees 14,706 17,591 16,782 17,301 Manual Laborers (1) 11,026 8,493 13,629 7,287 Joint Operations Employees (2) 3,317 1,995 1,109 1,482 Subcontracted (3) 3,857 4,434 3,775 2,623 Total 32,906 32,513 35,295 28, Q 18 Employees Manual Laborers (1) Joint Operations Employees (2) Subcontracted (3) (1)The number of manual laborers, who form part of our network of approximately 38,000 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. 16

19 Corporate Governance 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 Non-Independent External Directors Carlos Montero Graña Alfonso García Miró Peschiera Independent External Directors Augusto Baertl Montori Roberto Abusada Salah Board of Directors New Chief Executive Officer, Luis Diaz Olivero, appointed at the Board of Directors meeting on February 27, of the 9 board members on March 31, 2017 (independent majority) were changed Modification of the General Regulations of the Board of Directors and creation of the Committee on Risks, Compliance and Sustainability, composed of a majority of external and independent directors The (I) Audit and Process Committees and (II) Human Board Management Committees are composed exclusively of independent external directors The (III) Investment Committee is comprised of a majority of independent external directors Four Operational Committees with at least two independent external directors within their members. Most of the Subsidiaries of the Group have at least one (1) external director in their Board of Directors Rafael VenegasVidaurre Pedro Pablo ErrazurizDominguez Alfonso de Orbegoso Baraybar Manuel del Río Jimenez Ernesto Balarezo Valdez 17

20 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 orall of our forward-looking statements in this presentation may turn out to be inaccurate. Our actual results could differ materially from those contained in forwardlooking 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 asof 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. 18

21 36 Contacts: Mónica Miloslavich Chief Financial Officer (511) Adriana Caballero Head of Investor Relations (511)