CONFERENCE CALL DETAILS

Transcription

1 November 7 th, 2018

2 2 CONFERENCE CALL DETAILS LIVE EVENT: The Company will host a conference call for investors and analysts today at 18:30 (Spanish time). Please find below conference call telephone numbers: Spain: France: UK: US: Access code: # Access to the live event: WEBCAST REPLAY: A recording of the conference call will be available for 30 days on the following telephone numbers: Replay dial number: Spain: France: +33 (0) UK: US: +1 (646) Access Code: # Access to the Webcast Replay:

3 3 This presentation has been produced by Indra for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or any advice or recommendation with respect to such securities. Its content is purely for information purposes and the statement it contains may reflect certain forward-looking statements, expectations and forecasts about the Company at the time of its elaboration. These expectations and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and other important factors beyond the control of the Company that could result in final results materially differing from those contained in these statements. The Company does not assume any obligation or liability in connection with the accuracy of the mentioned estimations and is not obliged to update or revise them. This document contains information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information. This disclaimer should be taken into consideration by all the individuals or entities to whom this document is targeted and by those who consider that they have to make decisions or issue opinions related to securities issued by Indra.

4 4 1 2 order intake kept growing above revenues (+8% vs +6% in local currency). Backlog grew by +9% and surpassed 4bn. 3 Revenues up +6% (local currency). Transport revenues up +42% in 3Q EBITDA totaled 183m (+7% vs 9M17). EBITDA Margin improved to 8.4% in and to 9.4% in 3Q18. EBIT reached 115m vs 124m in 9M17. EBIT Margin was 5.3% vs 5.8% in 9M17. Excluding Tecnocom restructuring (first-half) and the CNMC fine of 13.5m (third quarter), EBIT would have reached 142m and EBIT Margin would have improved to 6.5% in. FCF generation amounted to -46m in (vs 44m in 9M17), affected by the seasonality of the third quarter and the difficult comparison vs 3Q17. 7 Net debt/ebitda LTM remained stable at 2.5x vs 9M17. Ex acquisitions, it would have decreased to 1.4x. 8 Indra maintains its 2018 guidance (Revenues, EBIT and FCF pre working capital).

5 5 Sales Growth Reported +3% Local Currency +6% 3Q18 Sales Growth Reported -4% Local Currency -1% m m

6 6 Order Intake ( m) Local Currency / Reported Revenues ( m) Local Currency / Reported 2,351 +8% / +5% 2,466 2,116 +6% / +3% 2,174 Spain 46% +15% 1,074 1,233 50% 47% +13% 985 1,112 51% 22% % / +4% 547 America 22% 22% % / -8% % 19% 13% % / -18% % / +5% 319 Europe 15% AMEA 13% 17% 14% % / +1% % / -12% % 12% 9M17 9M17

7 EBIT and Margin 3Q18 EBIT and Margin 5,8% -0,5pp 5,3% 6,3% -0,3pp 6,0% 124-6,9% ,2% 42 9M17 EBIT ( m) EBIT ( m) 1.2pp impact 3Q17 EBIT ( m) 3Q18 EBIT ( m) 1.9pp impact EBIT and Margin excluding the impacts of Tecnocom rest. and CNMC fine 3Q18 EBIT and Margin excluding the impact of CNMC fine 6.2% 0.3pp 6.5% 6.3% 1.6pp 7.9% 7.5% % 56 9M17 EBIT* ( m) EBIT ( m) * 9M17 EBIT excluding the impact of Tecnocom restructuring costs 3Q17 EBIT (m ) 3Q18 EBIT (m ) 7

8 T&D Order Intake ( m) Local Currency / Reported Revenues ( m) Local Currency / Reported % / -4% % / +21% % 359-0% / -1% % 50% 408-4% / -5% % / -4% % 50% 50% 52% % / +42% % 9M17 3Q18 Revenues ( m) Local Currency / Reported 9M % / +0% 259 Defence & Security Transport & Traffic 49% 51% % / -8% % / +8% % 55% 3Q17 3Q18 8

9 9 T&D EBIT ( m) 3Q18 EBIT ( m) % % 33 9M17 3Q17 3Q18 EBIT Margin (%) 3Q18 EBIT Margin (%) 13.0% -0.2pp 12.8% 14.0% -1.4pp 12.6% 9M17 3Q17 3Q18

10 MINSAIT (IT) Revenues ( m) Local Currency / Reported Order Intake ( m) Local Currency / Reported 26% 1, % / +7% +27% / +22% 1, % 27% 1, % / -3% +25% / +19% 1, % 33% 27% % / +10% % / -10% % 23% 32% 31% 11% % / +17% % / -44% % / +2% 177 9M17 Energy & Industry Financial Services PPAA & Healthcare Telecom & Media 39% 18% 11% 13% 24% 31% 32% 13% % / +4% 178 9M17 3Q18 Revenues ( m) Local Currency / Reported 478-2% / -5% % / +15% % / +4% % / -30% % / -6% 57 13% 30% 34% 24% 13% 3Q17 3Q18 10

11 MINSAIT (IT) Operating Margin 1 3Q18 Operating Margin M17 Op. Margin ( m) Op. Margin ( m) 3Q17 Op. Margin ( m) 3Q18 Op.Margin ( m) EBIT and Margin 3Q18 EBIT and Margin 1.4% -0.3pp 1.1% 2.1% +0.1pp 2.2% M17 EBIT ( m) EBIT ( m) 3Q17 EBIT ( m) 3Q18 EBIT ( m) 1. EBIT before Other Operating Income & Expenses, which includes: staff reorganization, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity based compensation. 11

12 12 MINSAIT (IT) (local currency) Order Intake Revenues EBIT EBIT Margin BRAZIL 9M17 Variation 586,8 740,5 +26% 569,1 609,5 +7% -11,6 31,1 NA -2.0% 5.1% +7.1pp Costs Synergies 1 Lean & Automation 2 Delayering 3 Pyramid Optimisation 4 Global Production Apply full end-to-end Lean approach, fostering a culture of continuous improvement and placing automation at the core of our operations Reduce management layers to increase agility and accountability while maximising efficiency Reshape our production and delivery pyramid Increase off-shoring by leveraging our existing capabilities in Latin America PLAN IT m 1m 0m 24m 41m 42m 11m 13m

13 Quarterly FCF ( m) FY15-50m FY16 184m FY17 186m -46m Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18-55 Accumulated FCF LTM ( m) OPERATING FCF BEFORE WC ( m) % H15 9M15 FY15 1Q16 1H16 9M16 FY16 1Q17 1H17 9M17 FY17 1Q18 1H18 9M17 13

14 14 Net Debt Bridge Cash Flow ( m) Includes ACS acquisition (c. 40m) FCF = -46m

15 Net Working Capital (DoS) Restated* *2017 restated for IFRS 15 and IFRS 9 15

16 837 (173) Net Debt ( m) 700 (187) 666 (187) (187) (187) Net Debt (Factoring) (1) 3Q15 4Q15 3Q16 3Q17 3Q18 6,6x 5,4x Net Debt/EBITDA LTM (Times) 3,1x 2,5x 2,5x 1.4x ND/ EBITDA LTM ND/ EBITDA LTM Ex Acquisitions Payments 3Q15 4Q15 3Q16 3Q17 3Q18 (1) Non-recourse factoring 16

17 Gross and Net Debt Structure 1,543m 858m Corporate Bonds Convertible Bonds 402 % total 2017 % total L/T Debt 1,338 87% 1,016 79% S/T Debt % % Gross Debt 1, % 1, % Cost of Gross Debt 2.1% 2.2% Cash & Others 858 n.m. 699 n.m. Net Debt 686 n.m. 588 n.m. Cost of Net Debt 3.4% 3.0% R+D Loans Bank Loans EIB 1 Loans Gross Debt Gross Debt Maturity Profile ( m) Other available credit facilities: 190m 187 Factoring Cash & Cash Equivalents m 686 Net Debt and above 3 1. European Investment Bank.2. Including 156m Convertible Bond 3. Including 246m Convertible Bond with 2023 maturity and 298m Corporate Bond with 2024 maturity 17

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