Q Interim Results Presentation

Transcription

1 Riservato & Confidenziale Q Interim Results Presentation June 1st, 2017 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 q Transition period in our International markets is now successfully completed: following completion of our major Ingula project we have a more diversified and granular backlog, 70% of which from overseas; turnover is up with new revenue from Middle East and Eastern Africa; EBITDA remains high, above 11%. q Total Turnover and Construction revenue increased in Q at 289m and 278m, compared to 259m and 250m in Q Turnover is expected to further increase in the next quarters with the kick-off of new projects. q Q EBITDA on budget at 32.2m, in line with Q1 2016; EBITDA Margin still above 11%. q Another significant boost in international orders, with 576m of projects secured in Zambia, Kenya, South Africa and the USA, compared to 576m of new orders secured in Q bn pipeline of new potential overseas projects (Argentina, Jordan, Nepal, The Philippines and the USA), and 1.0bn pipeline in Italy. q Increasing Backlog, up by 142m to 3,567m (3.4x Construction revenue) compared to 3,425m (3.3x Construction revenue) in Dec q Confirmed trend reversal in Net Working Capital, down by 20m from Dec-2016 to 349m, mainly thanks to a significant payment received from our Angola projects. Advanced negotiations expected to lead to a settlement agreement with ANAS, with potential drop in NWC of at least 150m in q Higher Capex in Q at 25m compared to 12m in Q due to higher investment in equipment for new projects. q Lower Adjusted Net Financial Position at 557m compared to 576m in Dec-2016, as a result of the reduction in NWC. Adj. NFP/EBITDA improved to 3.7x from 3.8x in Dec q In December 2016, new Italian GAAP were introduced. The key financials presented here are prepared according to the updated standards, including 2016 financials which have been restated for comparison. 4

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

6 Financial Highlights million Income Statement Q Q Restated % Change Comment Total turnover % Construction revenue % - Italy % - International % EBITDA (2.1)% EBITDA Margin 11.1% 12.7% Net Income (45.5.)% q + 17m in Italy, due to increased production in ANAS project in Sicily and Savona q + 11m overseas, thanks to: q start of itare project in Kenya q higher revenue from Lebanon and USA q EBITDA in line with Q q EBITDA margin on budget above 11% => Ingula project entirely replaced by new projects, with increased, more diversified revenue and high profitability Balance Sheet Mar-2017 Dec-2016 Restated Change Comment Net working capital (19.5) Net financial position (18.4) Adj. Net fin. position (18.9) q Lower NWC, mainly thanks to a significant inflow from our project in Angola. q Lower Adj NFP tanks to reduced NWC, in a traditionally cash burning quarter Cash Flow Q Q Restated Change Comment - CF from operations CF from investing (25.3) (12.2) (13.1) -CF from financing Total cash flow q Significantly higher CF from op. mainly thanks to NWC reduction q Lower CFI from investing, due to capex to start new projects q Higher CF from fin., due to temporarily higher utilisation of RCF, reduced in April with the proceeds from Angola 6

7 Financial Highlights million Backlog Mar-2017 Dec-2016 Change Comment - Italy - International (23.4) 2, , q 142m increase thanks to significant orders secured in Eastern/Southern Africa and the USA Total Backlog Breakdown by area 3,567.3 Intl. 70% Italy 30% 3,425.3 Intl. 67% Italy 33% q q q Intl. projects reaching 70% of total Transport Infrastructure and Hydropower works still the largest business units Maintained significant coverage of expected turnover New Orders Q Q Change Comment - Italy (149.9) - International Total new orders (0.4) Key Indicators Mar-2017 Dec-2016 Restated % Change LTM Turnover 1, , % LTM Constr. revenue 1, , % LTM EBITDA (0.5)% Backlog/Constr. revenue 3.38x 3.34x NFP/LTM EBITDA 3.61x 3.71x Adj. NFP/LTM EBITDA 3.69x 3.79x q 200m road project in Zambia q 120m water project in Kenya q 145m new projects in USA q c. 1.1bn of international projects expected to be awarded soon q c. 1.0bn pipeline in Italy Comment q Higher LTM construction revenue, expected to increase in Q2 thanks to new revenue from Sweden, Laos and The Philippines q Higher Backlog/Construction revenue ratio q Decrease in Adj. NFP/LTM EBITDA thanks to net debt reduction 7

8 Backlog q International projects increased to 70% of total backlog in Q ,302 1,277 Dec-16 Mar Dec-16 Mar-17 Dec-16 Mar Dec-16 Mar-17 Dec-16 Mar-17 million Dec-16 Mar-17 3,567 3,425 Dec-16 Mar-17 N. America 6% S. America 1% E. Africa 18% Europe 5% N. Africa 6% Asia 10% 490 Dec Mar Dec-16 Middle East Mining and 6% Waste Transport Italy Treatment 54% 31% Water 1% Control and Marine Southern Africa 17% 1% Building 7% Water and Irrigation 37% 646 Mar-17 q Increased by 142m, thanks to 576m of new orders secured q Highly profitable, international projects achieved 70% of total backlog q Increased presence in Southern/Eastern Africa and the USA 8

9 New Orders q Increased overseas presence thanks to new large projects secured in Zambia, Kenya and the USA Key new orders New Backlog Zambia q Kabwe Piccadilly Mkushi road construction project: 200m. q Additional works on existing projects: 40m 240m Kenya q Kithino multipurpose water project 120m USA q New projects acquired by LMH and Di Fazio. 145m South Africa q Additional works on existing projects 20m Other q Additional works on existing projects 51m 576m 9

10 Construction revenue q Higher Construction Revenue with new revenue stream from Middle East and Kenya. Revenue expected to further increase in next quarters with the start of projects already secured in million Construction Revenue Europe 1% Middle East 7% North America 9% South America 2% Eastern Africa 6% Northern Africa 1% Asia 9% Italy 42% Mining and Waste Treatment Water 2% Control and Marine 1% Building 8% Southern Africa 23% Water and Irr. 29% Transport 60% q Higher revenue in Europe due to increased turnover from projects in Sicily and Savona. q Lower revenue in Southern Africa due to end of projects in Mozambique and S. Africa. Increase expected in Eastern and N. Africa q New revenue from Middle East and Kenya. Asia revenue expected to increase with the start of new projects secured in

11 Margins million q Maintained high profitability despite transition period in key international markets Profitability analysis q EBITDA substantially stable, with EBITDA Margin on budget above 11% q Maintained high Contribution Margin, thanks to the new international projects which confirm expected high profitability q EBIT substantially in line with Q % 8.0% 5.5% 6.2% q Net income slightly lower due to slightly higher depreciation and financial charges % 11.1% 9.6% 8.1% 7.5% 6.4% % 0.6% EBITDA Contribution Margin EBIT Net income million Contribution margin by area* % 4.9% 10.2% 11.0% 4.1% 6.1% Italy International 10.7% 10.2% * Calculated on construction revenue in Italy and overseas, respectively. 11

12 Working Capital q The reduction in Net working capital continued in Q1 2017, despite the unfavourable seasonality which normally affects the first part of the year Working Capital Analysis million Inventories Work in progress Receivables Advances Suppliers Other op. net assets NWC % 8.0% Dec-2016 Mar-2017 q Significant drop in receivables, mainly thanks to the collection of a significant payment from our project in Angola q WIP still temporary high due to delay in work certification from ANAS in relation to our projects in Sicily q Higher contact advances confirm the expected relief on working capital due to the more international backlog q Advanced negotiations with ANAS on WIP related to Empedocle 2 project to lead to a cash inflow of c. 50m in 2017 and c. 15m in q A technical appraisal due in July on the WIP related to the Empedocle 1 project is expected to reduce NWC by c. 60m in q Further reduction in NWC might arise in 2018 from settlements on our Bolognetta and Savona projects, for a total of approximately 40m. 12

13 Capex q Capex slightly higher than in Q due to the investment in equipment for the start of new projects 30.0 Capital Expeditures* million Intangible Tangible Financial Total Capex -0.1 * Net of capital disposals during the period q Capex in intangibles: in line with Q q Capex in tangible assets: higher than in Q due to higher investment in heavy equipment for the start of new projects secured in

14 Net Financial Position Net Financial Position Analysis million RCF Recourse factoring Other current fin. debt Senior Notes Other noncurrent fin. debt Liquid assets Net financial position Shareholders' loan Adj. Net financial position Dec-2016 Mar-2017 q Adjusted net financial position decreased by 19m from 576m in Dec-2016 to 557m in Mar Adjusted net financial position/ltm EBITDA decreased, moving from 3.79x to 3.69x in the first three months of q The decrease in Adjusted net financial position was mainly due to the collection of a significant payment from our project in Angola, and the resulting reduction in NWC. At the end of the quarter, the drawdown of our RCF was temporarily higher, with the liquidity generated by the Angola payment still held in our cash account. The cash was then utilised in April to reduce the RCF drawdown. q The expected settlement agreement with ANAS might lead to a significant reduction in our Adjusted Net Financial Position in

15 Cash flow Cash Flow Analysis million CF from Operations CF from Investing CF from Financing Total CF q Significantly higher CF from Operations thanks to reduction in NWC and in the utilisation of funds for risks and charges. q Lower CF from Investing, due to the capital expenditures required for the start of new projects. q Higher CF from Financing, due to the temporary increase in the utilisation of the RCF, which was decreased in April with the proceeds of a significant payment received from our project in Angola at the end of the first quarter. 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 March 31, Three months ended March 31, % of restated change original ( in milllion) Revenue Other income and proceeds (5.2) 5.8 Total turnover Raw materials, comsumables and goods (54.9) (47.1) 16.6 (47.1) Services, lease and hire (137.7) (118.6) 16.1 (117.0) Personnel (52.3) (47.3) 10.6 (47.3) Provisions for risk and charges (0.3) (5.8) (94.8) (5.8) Other operating costs... (11.6) (6.9) 68.1 (6.9) EBITDA (2.1) 34.5 Depreciation, amortisation and write-offs of receivables (13.8) (13.4) 3.0 (13.7) Operating profit (5.6) 20.8 Net financial income and charges. (15.5) (14.2) 9.2 (13.9) Net extraordinary income and charges (1.6) Income before tax (45.3) 5.3 Income taxes.. (1.3) (2.3) (43.5) (2.3) Income before minority interests (46.7) 3.0 Minority interests (33.3) 0.3 Consolidated net income (45.5)

20 Reclassified Net Working Capital March 31, 2017 December 31, 2016 March 31, 2016 March 31, 2016 restated original ( in million) ( 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, , , ,369.1 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.. 1, Net Working Capital

21 Reclassified Adjusted Net Financial Position March 31, 2017 December 31, 2016 March 31, 2016 March 31, 2016 ( in million) Cash and cash equivalents (159.8) (96.4) (116.9) (116.9) Short-term financial assets. (2.4) (1.1) (0.8) (0.8) Liquid assets (162.2) (97.5) (117.7) (117.7) Short-term bank loans and borrowings Recourse factoring Current portion of non-current borrowings Other short-term debt Current financial debt Net current financial debt Notes Revolving Credit Facility Non-current bank loans and borrowings 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 restated original 21

22 Condensed Cash Flow Three months ended Three months ended March 31, 2017 March 31, 2016 ( in million) Cash and cash equivalents at start of the period Cash flow generated by operating activities Cash flow generated by/(used in) investing activities. (25.3) (12.2) Cash flow generated by/(used in) financing activities Cash and cash equivalents 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: