Royal BAM Group nv Half-year results Analysts meeting Amsterdam, 23 August 2012

Transcription

1 Royal BAM Group nv Half-year results 2012 Analysts meeting Amsterdam, 23 August 2012

2 Highlights Net loss including impairments for H1 2012: 251 million Results at Construction and M&E services and Civil engineering in line with management expectations given very difficult market circumstances Lower revenue at Property; further deterioration in Dutch property market leads to non-cash impairments of property portfolio by 247 million and of goodwill by 150 million Solid performance and good bid pipeline at PPP Order book at 10.8 billion at end of H (year-end 2011: 10.4 billion) Sale of Tebodin completed in April; contribution to net result of 65 million Well within limits of banking covenants Royal BAM Group Half-year results

3 Construction and M&E services 1H12 1H11 Δ Revenue 1,570 1,547 +1% Result 1) Margin 1.9% 3.0% Order book 4,266 4,456-4% (in million, unless stated otherwise) 1) Result before tax Fiercely competitive market conditions continuing Revenue up in non-residential in UK, B and D; offset by fall in NL Margin of 1.9% in line with H and in line with expected margin of around 2% for FY 2012 Fall in order book due to selective tendering Royal BAM Group Half-year results

4 Civil engineering 1H12 1H11 Δ Revenue 1,761 1,810-3% Result 1) Margin 1.4% 2.6% Order book 5,574 5, % (in million, unless stated otherwise) 1) Result before tax Market conditions and outlook in European home markets mainly negative; some signs of improvement in IE and UK Good results and prospects BAM International, especially in Australia and Middle East Lower margin in H due to lower quality of order book Still in line with expected margin of around 2% for FY 2012 Increase in order book due to BAM International and Germany Royal BAM Group Half-year results

5 Property 1H12 1H11 Δ Revenue % Result 1) Margin Neg. 0.4% Order book 1,129 1,103 +2% (in million, unless stated otherwise) 1) Result before tax Market conditions in NL deteriorating ( later, fewer and lower ) Markets in UK and IE remained subdued; encouraging performance in Belgium NL sales mix biased to cheaper, student apartments and to institutional buyers (60%) Operational loss due to impact of adjusted assumptions in NL Impairments property 247 million Impairments goodwill 150 million Royal BAM Group Half-year results

6 Impairments: Dutch market conditions Price index homes Homes sales average* *4 quarters rolling average Source: Centraal Bureau voor de Statistiek, Den Haag/Heerlen Building permits issued average* Royal BAM Group Half-year results

7 Impairments: process At AM: Total land bank of AM of 230 land positions with a total value of 755 million have been reviewed (partly with external appraisers) Review led to impairments totalling 230 million for 100 land positions, reducing book value from 485 million to 255 million (average impairment 47%) The other 130 positions with a total value of 270 million were valued at or above book value Other property activities (including other countries) Review of all positions, including commercial, resulted in impairments totalling 17 million Royal BAM Group Half-year results

8 Impairments: categories Land and building rights Property development Q Additions* /usage H Reclassify Later Impairments Fewer & lower H Total 1, ,276 (in million, unless stated otherwise) * Including 66 million as a result of reappraisal of obligations relating to land purchases Royal BAM Group Half-year results

9 Property investments (after impairments) Investments Netherlands ( 966 million) Netherlands 966 United Kingdom 178 Belgium 93 Ireland 39 Total: 1,276 in million Commercial ( 161) Residential ( 145) Land and building rights ( 660) Land bank developments > 8 yr ( 222) Land bank developments < 8 yr ( 439) in million Royal BAM Group Half-year results

10 Property Netherlands Number of home sold from own development: Q Q Q3 408 Q4 597 Total 1,154 2,230 Stock of unsold and unlet premises : 1H homes under construction (number) homes finished (number) commercial property (m 2 ) 11,500 10,800 Royal BAM Group Half-year results

11 Public private partnerships 1H12 1H11 Δ Revenue % Result 1) Margin 1.5% 0.0% Order book % (in million, unless stated otherwise) 1) Result before tax Operational profit first half year includes one small transfer to PGGM JV Total book profit on transfers to PGGM JV of around 10 million expected for FY active bids in pipeline, with 4 final decisions expected in 2012 Royal BAM Group Half-year results

12 Public private partnerships: portfolio 1H Contracts in portfolio Of which: - Operational Under construction 1) Balance sheet positions 2) 1H PPP assets (intangibles, receivables) 1,290 1,079 1,019 PPP loans 1, Net PPP equity investment 3) - Actual Committed (approx.) Directors valuation (approx.) (in million, unless stated otherwise) 1) 2011 and 1H12: excluding two contracts in preferred bidder stage 2) Excluding contracts held for sale 3) BAM share in equity of PPP contracts Royal BAM Group Half-year results

13 Revenue and results per sector 1H12 1H11 Revenue Result 1) Revenue Result 1) Construction and M&E Services 1, , Civil engineering 1, , Property PPP Eliminations and other Total sectors 3, , (in million, unless stated otherwise) 1) Result before tax Royal BAM Group Half-year results

14 Key figures: income statement 1H12 margin 1H11 margin Total result sectors % % Group overhead Group interest Operating activities % % Dredging Result before tax % % Impairment at Property Impairment goodwill Income tax Minority interest Net result from continuing activities Discontinued operations Net result (in million, unless stated otherwise) Royal BAM Group Half-year results

15 Key figures: balance sheet 1H H11 Balance sheet total 6,679 7,218 7,144 Shareholders equity 877 1,162 1,165 Capital base 1,002 1,362 1,365 Capital ratio 15.0% 18.9% 19.1% Net cash 428 1, Interest-bearing debt 1,982 2,191 2,191 Net debt position 1,507 1,178 1,615 Recourse net debt Shareholders equity and capital base affected by impairments, resulting in lower capital ratio Recourse net debt improved by 347 million vs 1H11 due to sales of Van Oord and Tebodin Fixed assets 2,388 2,229 2,454 Net operating capital (excl. cash and st-debt) (in million, unless stated otherwise) Royal BAM Group Half-year results

16 Breakdown of net debt position 1H H11 Non-recourse PPP loans 1, Non-recourse project financing Other project financing Total project related 1,755 1,586 1,583 Subordinated loan Loan BAM Financial lease liabilities Bank overdrafts and other loans Total interest-bearing debts 1,982 2,191 2,191 Less: cash , Net debt position 1,506 1,178 1,615 Recourse net debt position (in million, unless stated otherwise) Royal BAM Group Half-year results

17 Recourse leverage ratio Recourse interest coverage ratio 3,5 3,0 2,5 2,0 1,5 1,0 0,5 0,0-0,5 1,1 1,6 2,2 1,7 0,7 1,6 0,8 1,2 0,5 1,3 1,5 1,4-0,2 0,9 0,4 11,0 10,0 9,0 8,0 7,0 6,0 5,0 4,0 3,0 10,4 9,9 7,7 8,7 6,2 7,3 7,7 4,9 7,1 6,4 6,1 6,5 4,8 4,5 5,0 Recourse leverage Limit recourse leverage Recourse interest coverage Limit recourse interest coverage Current ratio Recourse solvency ratio 1,50 1,40 1,30 1,20 1,10 1,00 0,90 1,39 1,24 1,21 1,23 1,251,27 1,31 1,25 1,13 29,0% 27,0% 25,0% 23,0% 21,0% 19,0% 17,0% 15,0% 13,0% 19,8% 19,9% 20,3% 20,4% 20,8% 19,3% 26,4% 25,2% 25,3% 24,0% 24,9% 24,9% 25,4% 23,8% 23,3% Current ratio Limit current ratio Recourse solvency Limit recourse solvency Royal BAM Group Half-year results

18 Order book 1H Construction and M&E Services 4,266 4,456 Civil engineering 5,574 5,087 Property 1,129 1,103 PPP Eliminations and other ,154 Total sectors 10,800 10,400 (in million) Order book up mainly due to new orders BAM International and Germany in the Civil engineering sector Royal BAM Group Half-year results

19 Outlook Royal BAM Group is confident about its prospects based on a sharp focus on its core business activities, its scope to promote synergies across the Group and its prospects for growth in new markets BAM forecasts a result before tax and impairments from continuing operations for the full year 2012 of at least 100 million, based on an expected margin of around 2% for Construction and mechanical and electrical services and Civil engineering Royal BAM Group Half-year results

20 NOTES: Royal BAM Group First quarterly results Royal BAM Group nv - Investor Relations - Patrick Snippe p.snippe@bamgroep.nl