Q Results Presentation

Transcription

1 Riservato & Confidenziale Q Results Presentation May 31st, 2016 Authorised and regulated by the Financial Conduit Authority

2 Disclaimer THIS PRESENTATION IS NOT, NOR SHALL BE CONSTRUED AS, AN OFFER, INVITATION OR SOLICITATION OF AN OFFER TO BUY OR SELL SECURITIES. IT IS SOLELY TO BE USED AT AN INVESTOR PRESENTATION AND IT IS PROVIDED FOR INFORMATION PURPOSE ONLY. THIS DOCUMENT DOES NOT CONTAIN ALL OF THE INFORMATION THAT IS MATERIAL TO AN INVESTOR. BY ATTENDING THE PRESENTATION OR BY READING THE PRESENTATION SLIDES YOU AGREE TO BE BOUND AS FOLLOWS: This document and its contents are confidential and may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This presentation, prepared by Cooperativa Muratori e Cementisti CMC di Ravenna S.c.p.a. (the Company ), is furnished on a confidential basis only for the use of the intended recipient and only for discussion purposes, may be amended and supplemented and may not be relied upon for the purposes of entering into any transaction. The information contained herein has been obtained from sources believed to be reliable but the Company does not represent or warrants that it is accurate and complete and such information has not been independently verified. The views reflected herein are those of the Company and are subject to change without notice. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of the presentation and the information contained herein and no reliance should be made on such information. Neither the Company nor any of its representatives shall accept any liability whatsoever (whether in negligence or otherwise) arising in any way from the use of this document or its contents or otherwise arising in connection with this document or any material discussed during the presentation. This presentation contains forward-looking statements, which include all statements other than statements of historical facts, including, without limitation, any statements preceded by, followed by or including the words target, believe, expect, aim, intend, may, anticipate, estimate, would,, will, could, should, plan, potential, predict, project or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company s control that could cause the Company s actual performance or achievements to be materially different from future performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company s present and future strategies and the environment in which it will operate in the future. These forward-looking statements speak only as of the date of this presentation and no reliance should be made on these statements. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in its expectations with regard thereto or any change in events, conditions or circumstances on which any of such statements are based. 2

3 Introduction 4 Page Financial Highlights 6 Q&A 17 Appendix 19 3

4 Introduction Total turnover and construction revenue increased by 4.5% and 2.5% respectively in Q1-16 compared to Q1-15. Higher International revenue (+19.3%) thanks to increased contribution from Southern Africa, Northern Africa, and USA. Lower domestic revenue (-15.4%), as in Q1-15 EXPO 2015 was completed. EBITDA increased by 2.1 million to 34.5 million from 32.4 million in Q1-15. EBITDA margin improved from 13.1% to 13.3%. Higher LTM EBITDA from 140 million in Dec-15 to 142 million in Mar-16. Backlog increased by 348 million from 3,519 million in Dec-15 to 3,867 million in Mar-16. International projects still represents 60% of the total. Backlog/LTM Construction revenue improved from 3.11x to 3.39x. Secured New Orders for 576 million in Q1-16, a 116 million increase from Q million in Italy, including a 83 million light railway project in Cosenza, and 422 million overseas, including large projects in Laos, Kenya, the Philippines and the USA. Net Working Capital 9 million higher than in Dec-15. Higher work in progress with ANAS; lower receivables due to collection of Ingula bonus; higher advances from the start of new International projects; lower debt towards suppliers. Agreed settlement with Eskom. Collection expected during Summer 2016 will lead to to significant NWC reduction. Capex substantially unchanged vs Q1-15 at 12.2 million, considering that Q1-15 capex were affected by the deconsolidation of Eurolink. Adjusted Net Financial Position stable from Dec-15 (+ 10 million from 580 million). Adjusted Net Financial Position/ EBITDA substantially unchanged at 4.14x from 4.13x. Collection of claims from Eskom expected in Summer Collections of claims from ANAS and contract advances are expected to lead to a significant reduction in leverage ratio. 4

5 Introduction 4 Page Financial Highlights 6 Q&A 17 Appendix 19 5

6 Financial Highlights million Income Statement Q Q % Change Comment Total turnover % Construction revenue % - Italy % - International % EBITDA % EBITDA Margin 13.3% 13.1% Net Income % m in Italy: Q revenue were positively affected by completion of EXPO m overseas thanks to the start of new projects in Southern Africa, Ingula bonus, and higher revenue in Northern Africa and Americas. Higher EBITDA (+ 2.1m), also improved as a percentage of total turnover. Higher net income despite increased financial charges. Balance Sheet Mar-31, 2016 Dec-31, 2015 Change Comment Net working capital Net financial position Adj. Net fin. position Higher WIP and lower payables to suppliers, more than offsetting lower receivables and higher advances Unchanged Adj.NFP/LTM EBITDA Cash Flow Q Q Change Comment - CF from operations CF from investing (12.2) (29.9) CF from financing 11.4 (7.2) 18.6 Total cash flow 16.2 (18.1) Lower CF from Operations due to temporary increase in NWC CFI substantially lower, as Q was affected by deconsolidation of Eurolink CFF higher as a result of higher NWC 6

7 Financial Highlights million Backlog Mar-31, 2016 Dec-31, 2015 Change Comment - Italy - International Total Backlog 1, , , , , , Significant increase in both Italian and International backlog Backlog/LTM Construction revenue improved from 3.11x to 3.39x Breakdown by area Intl. 60% Italy 40% Intl. 60% Italy 40% Maintained significant coverage of expected production value of the next two years New Orders Q Q Change Comment - Italy International Total new orders m Cosenza underground (Italy) 160m hydroelectric plant in Laos 106m hydroelectric plant in Kenya 56m hydraulic project in Philippines 42m new projects in USA Key Indicators Mar-31, 2016 Dec-31, 2015 % Change Comment LTM Turnover 1, , % LTM Constr. revenue 1, , % LTM EBITDA % Backlog/Constr. revenue 3.39x 3.11x NFP/LTM EBITDA 4.05x 4.03xx Adj. NFP/LTM EBITDA 4.14x 4.13x Higher LTM Turnover, Construction revenue and EBITDA Higher Backlog/LTM Construction revenue thanks to significant new international orders Adj. NFP/EBITDA substantially unchanged and expected to decrease as a result of settlement with Eskom 7

8 Backlog International projects still represents 60% of total backlog. 1,610 1,733 Dec-15 Mar Dec-15 Mar-16 Dec-15 Mar Dec-15 Mar-16 Dec-15 Mar Dec-15 Mar Dec-15 Mar-16 Dec-15 Mar-16 million 3,519 Dec-15 Backlog 3,867 Mar-16 North America 2% South America 1% Eastern Africa 15% Northern Africa 8% Asia 9% Europe 5% Middle East 4% Italy 40% Southern Africa 16% Mining and Waste Treatment Water 1% Control and Marine 1% Building 11% Water and Irr. 33% Transport 54% Higher backlog mainly thanks to significant orders secured overseas Laos and the Philippines added to project map Higher weight for water an irrigation, due to new hydroelectric and hydraulic projects 8

9 New Orders Increased orders driven by new large overseas projects in Laos, Kenya and the Philippines Key new orders New Backlog Italy Light railway Cosenza: 83m. Hospital and related facilities Ancona: 28m. Commercial complex in Rimini: 14m. Waste water treatment project for Hera iin the Rimini area: 11m. Others: 18m. 154m Laos Hydroelectric plant: 160m. 160m Kenya Hydroelectric plant in Kimwarer.: 106m. 106m Philippines Hydraulic project in the Laguna and Quezon provinces: 56m. 56m USA Additional projects acuired by LMH and Di Fazio. 42m Other Additional works on existing projects 58m 576m 9

10 Construction revenue +2.5% increase in Q1-16 vs Q1-15, with higher contribution mainly from Africa and Americas Q1-15 Q Q1-15 Q Q1-15 Q Q1-15 Q Q1-15 Q1-16 Construction revenue million Q1-15 Q1-16 North America 7% South America 2% Northern Africa 2% Asia 12% Q1-15 Q1-16 Europe Italy 40% Mining and 0% Waste Transport Treatment 58% Water 2% Control and Marine 1% Southern Africa 37% Building 8% Water and Irr. 31% Higher revenue from Overseas, thanks to higher contribution from Austral Africa, Northern Africa and USA. Sharp increase in Water and Irrigation revenue Lower Building revenue, positively aff4ected in Q1-15 by EXPO

11 Margins Higher operating margins with a particular improvement in Italy 40.0 Profitability analysis Increased EBITDA both in absolute and in percentage terms Contribution margin significantly improved in Italy million Higher Contribution margin Overseas in absolute value, with maintained profitability in percentage terms EBIT margin and Net income higher than in Q both in absolute and percentage terms % 13.3% 8.6% 10.1% 6.5% 8.0% EBITDA Contribution Margin EBIT Net income % 1.3% Q1-15 Q1-16 million Contribution margin by area* 8.0 Italy % 10.9% 10.5% 10.2% International Q1-15 Q1-16 * Calculated on construction revenue in Italy and overseas, respectively. 11

12 Working Capital Slight increase in NWC, expected to reverse as a result of final settlement with Eskom and contract advances on International projects Working Capital Analysis million Inventories Work in progress Receivables Advances Suppliers Other op. net assets NWC Dec-15 Mar-16 Higher work in progress due to delayed certification of work carried out for ANAS. Lower receivables as a result of the collection of Ingula bonus. Higher contract advances resulting from the start of new International projects. Lower payments to suppliers. Advances on new International contract, the payment of claims on the Ingula project and the collection of outstanding claims with ANAS is expected to lead to a significant improvement in NWC. In particular, the main terms of the claims settlement with Eskom have been agreed in May, are expected to be signed in June and collected during the Summer

13 Capex Capex substantially unchanged, considering that Q1-15 capex were affected by the deconsolidation of Eurolink Capital Expeditures* million Intangible Tangible Financial -0.1 Total Capex Q1-15 Q1-16 * Net of capital disposals during the period Lower intangible capex. Slightly higher tangible capex mainly due to investment in machinery for our Lebanon project. Lower financial capex, affected in Q1-15 by the deconsolidation of Eurolink. 13

14 Net Financial Position Leverage ratios substantially unchanged, and expected to improve as a result of final settlement with Eskom and collection of advances on new International contracts 700 Net Financial Position Analysis million RCF Recourse factoring Other current fin. debt Senior Notes Other noncurrent fin. debt Liuid assets Net financial position Shareholders' loan Adj. Net financial position Dec-15 Mar-16 Our Adjusted net financial position almost in line with Dec-15 (+ 10 million from 580m to 590 in Mar-16), mainly as a result of temporarily higher NWC. Adjusted net financial position/ltm EBITDA remained substantially unchanged, moving from 4.13x to 4.14x. The expected collection of claims from Eskom within the Summer 2016, advances on new International contracts and the collection of claims from ANAS is expected to lead to a significant debt reduction. A new 150m RCF was launched in May by BNPP and Unicredit. The syndication is expected to be completed within June

15 Cash flow Cash Flow Analysis million CF from Operations CF from Investing CF from Financing Total CF Q1-15 Q1-16 Cash flow from Operations slightly lower due to temporarily higher NWC. Cash Flow from Investing lower, as in Q1-15 it was affected by the deconsolidation of Eurolink Higher cash flow from Financings resulting from increased debt to fund temporarily higher NWC. 15

16 Introduction 4 Page Financial Highlights 6 Q&A 17 Appendix 19 16

17 Q&A 17

18 Introduction 4 Page Financial Highlights 6 Q&A 17 Appendix 19 18

19 Reclassified Consolidated Income Statement Three months ended March 31, % of change ( in milllion) Revenue Other income and proceeds Total turnover Raw materials, comsumables and goods (47.1) (45.1) 4.4 Services, lease and hire (117.0) (112.7) 3.8 Personnel (47.3) (49.4) (4.3) Provisions for risk and charges (5.8) (1.2) Other operating costs... (6.9) (6.8) 1.5 EBITDA Depreciation, amortisation and write-offs of receivables (13.7) (16.3) (16.0) Operating profit Net financial income and charges. (13.9) (10.5) 32.4 Net extraordinary income and charges (1.6) (0.2) Income before tax (1.9) Income taxes.. (2.3) (2.8) (17.9) Income before minority interests Minority interests Consolidated net income

20 Reclassified Net Working Capital March 31, 2016 December 31, 2015 March 31, 2015 ( in million) Inventories Raw materials and consumables Work in progress and semi-finished products Finished products and goods Contract work in progress Receivables from clients Receivables from non-consolidated affiliates Other current assets Total current assets 1, , ,279.5 Contractual advances payments from clients Advances Trade payables to suppliers Payables to non-consolidated affiliates Other current liabilities Reserves for risks and charges Total current liabilities Net Working Capital

21 Reclassified Adjusted Net Financial Position March 31, 2016 December 31, 2015 March 31, 2015 ( in million) Cash and cash euivalents (116.9) (100.6) (108.7) Short-term financial assets. (0.8) (1.0) (2.0) Liuid assets (117.7) (101.6) (110.7) Short-term bank loans and borrowings Revolving Credit Facility Recourse factoring Current portion of non-current borrowings Other short-term debt Current financial debt Net current financial debt Non-current bank loans and borrowings Notes Other non-current loans Non-current financial debt Total financial debt Net financial position Shareholder loans Total adjustments Adjusted net financial position LTM EBITDA Net financial position/ltm EBITDA Adj. Net financial Position/LTM EBITDA

22 Condensed Cash Flow Three months ended Three months ended March 31, 2016 March 31, 2015 ( in million) Cash and cash euivalents at start of the period Cash flow generated by operating activities Cash flow generated by/(used in) investing activities. (12.2) (29.9) Cash flow generated by/(used in) financing activities (7.2) Cash and cash euivalents at the end of the period

23 Contacts Alberto Morigi CFO CMC di Ravenna Tel: Andrea Pierpaoli, CFA Investor Relations CMC di Ravenna Mob: Andrea Pagliarani Investor Relations CMC di Ravenna Tel: