RESULTS 1Q17. May 11 th, 2017

Transcription

1 RESULTS May 11 th, 2017

2 CONFERENCE CALL DETAILS The Company will host a conference call for investors and analysts today at 18:30 (CET). Please find below conference call telephone numbers: Spain: UK: +44 (0) USA: Access to the live event: 02F34364 A recording of the conference call will be available for 30 days on the following telephone numbers: Replay dial number: Spain: UK: +44 (0) US: Access code: # Conference call Webcast replay over the Internet: 02F34364

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 MAIN HEADLINES 1 Revenues reached 638m, posting a growth of +2% in reported terms 2 Order Intake went down -7% due to the seasonality of the Elections business and other contracts 3 EBITDA grew +10% compared to 1Q16 4 EBIT margin of 5.2% in vs 4.6% in 1Q16, due to better margins in IT 5 Good performance of the cash flow generation ( -5m) given the high volume of expected collections throughout the first months of 2017 advanced to 4Q16 6 Net Debt/EBITDA LTM remained stable 7 Brazil delivered positive EBIT in 8 Net Income posted a growth of +77% totaling 21m guidance confirmed (Revenues, EBIT margin and FCF pre-working capital, pre-tecnocom) 4 Conference Call Results 4

5 REVENUES GROWTH +2% IN REPORTED TERMS Sales Reported Growth +2% Sales in Local Currency -1% M o/w America -12M o/w Brazil -3M 5 Conference Call Results 5

6 REVENUES BY VERTICAL Revenues ( M) Local Currency / Reported -1% / -0% Spain Int. (LC) T&D Defence & Security Transport & Traffic 18% % / +11% % / -9% % 24% 22% 360-0% / +3% 371 IT Energy & Industry Financial Services PPAA & Healthcare Telecom & Media 16% 18% 15% 9% 98 +1% / +4% % / +12% % / -1% % / -10% 50 16% 20% 14% 8% 1Q16 6 Conference Call Results 6

7 REVENUES BY REGION Revenues ( M) Local Currency / Reported -1% / +2% Spain 46% % / +5% % America 24% 148-8% / +0% % Europe 16% % / +16% % AMEA 15% 92-23% / -21% 72 11% 1Q16 7 Conference Call Results 7

8 ORDER INTAKE DOWN -7% IN REPORTED TERMS Order Intake by Region ( M) Local Currency / Reported Order Intake by Vertical ( M) Local Currency / Reported 918-9% / -7% % / -14% 15% 140-6% / -6% % Defence & Security T&D Spain 56% % / -10% % % -22% / -21% 16% 137 Transport & Traffic 604-5% / -4% 583 America Europe AMEA 21% 16% 7% % / -7% % / +5% % / -15% 54 21% 18% 6% 19% 22% 17% 8% % / +6% % / +7% % / -23% % / -15% 64 22% 25% 14% 7% Energy & Industry Financial Services PPAA & Healthcare Telecom & Media IT 1Q16 1Q16 8 Conference Call Results 8

9 BRAZIL EBIT TURNING AROUND (local currency) Order Intake 1Q16 Variation % Order Intake Evolution (%) 17% 11% 5% 7% Revenues EBIT (*) % % -18% 3M16 6M16 9M16 12M16 3M17 Revenues Evolution (%) EBIT Margin (*) 0.3% 0.5% +0.2 pp -7% -9% -12% -16% -16% 3M16 6M16 9M16 12M16 3M17 5 out of the 7 onerous projects already closed/finished with the remaining ones on track EBIT Margin Evolution (%) (*) 0% 1% (*) EBIT includes labor contingencies -4% -2% -2% 3M16 6M16 9M16 12M16 3M17 9 Conference Call Results 9

10 HEADCOUNT EVOLUTION Total Headcount Spain America AMEA Europe Q16 2Q16 3Q16 4Q16 10 Conference Call Results 10

11 MARGINS KEEP IMPROVING, IT BUSINESS EBIT TURNING AROUND EBIT Margin Evolution EBIT by Divisions T&D IT 29 15,6% 33 12,4% 12,3% -1,2% 0,2% EBIT 1Q16 4,6% +0,6pp EBIT 5,2% 1Q16 1Q16 Quarterly EBIT Margin Evolution 7,6% 3,5% 6,0% 4,6% 5,9% 5,5% 5,2% 0,5% -4,0% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 11 Conference Call Results 11

12 STRONG FCF GENERATION DUE TO OPERATING IMPROVEMENT Quarterly FCF ( M) FY15: -50M FY16: 184M More than 80M of expected collections throughout the first months of 2017 advanced to 4Q Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Accumulated FCF LTM ( M) OPERATING FCF BEFORE WC ( M) % 47, , Q15 1H15 9M15 FY15 1Q16 1H16 9M16 FY16 1Q16 12 Conference Call Results 12

13 NET DEBT BRIDGE FCF = -5M Net Debt 2016 Operating Cash Flow Net Working Capital Other Operating Changes Capex Taxes Net interest & Subsidies Financial Investments & Non- CF items & Others Net Debt 13 Conference Call Results 13

14 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) FY16 Accounts Receivable Accounts Payable Inventory NWC: Reclassification of billed receivables from short-term to long-term financial assets with a net impact of 85m (equivalent to 11 DoS) 14 Conference Call Results 14

15 NET DEBT EVOLUTION Net Debt ( M) (176) (173) 837 (173) (187) (162) (187) (187) (187) (187) Net Debt (Factoring)* Net Debt/EBITDA LTM (Times) 5,9 6,6 5,4 4,7 3,2 3,1 3,1 2,3 2,3 ND/ EBITDA LTM 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 (*) Non-recourse factoring 15 Conference Call Results 15

16 DEBT STRUCTURE 2016 ( M) Total % of total Total % of total L/T Debt 1,183 95% 1,136 95% S/T Debt 59 5% 61 5% Gross Debt 1, % 1, % Cost of Gross Debt 2.4% 2.8% Cash & Others 710 n.m. 674 n.m. Net Debt 532 n.m. 523 n.m. Cost of Net Debt 3.3% 3.3% Gross Debt Maturity Profile Available Credit Facilities ( M) ( M) Available Facilities 1, Net Debt Cash Beyond 2020 Credit Facilities Beyond Conference Call Results 16

17 Investor Relations Avda. de Bruselas Alcobendas, Madrid Spain T