2015 Full Year Results

Transcription

1 2015 Full Year Results March 2016

2 Disclaimer This presentation does not contain or constitute an offer of securities for sale or an invitation or inducement to invest in securities in France, the United States or any other jurisdiction. Certain information included in this presentation and other statements or materials published or to be published by SPIE are not historical facts but are forward-looking statements. These forward-looking statements are based on current beliefs, expectations and assumptions, including, without limitation, assumptions regarding present and future business strategies and the environment in which SPIE operates, and involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements, or industry results or other events, to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements speak only as of the date of this presentation and SPIE expressly disclaims any obligation or undertaking to release any update or revisions to any forward-looking statements in this presentation to reflect any change in expectations or any change in events, conditions or circumstances on which these forward-looking statements are based. Such forward looking statements in this presentation are for illustrative purposes only. Forward-looking information and statements are not guarantees of future performances and are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of SPIE. Actual results could differ materially from those expressed in, or implied or projected by, forward-looking information and statements. These risks and uncertainties include those discussed or identified under Chapter 4 Facteurs de Risques in the Document de Base dated May 19 th, 2015 and the Actualisation du Document de Base dated May 29 th, 2015, filed by SPIE with the AMF and available on the website of the Company ( and of the AMF ( This presentation includes pro forma financial information in relation to the financial years ended December 31 st, 2011 and 2013 that have been prepared as if the Group had been acquired by the Consortium at January 1 st, 2011 and all the acquisitions made in 2013, including Hochtief s Service Solutions, had been acquired at January 1 st, 2013.These pro forma information are provided only for information purposes and do not represent the results that would have been achieved if these acquisitions had actually been completed on January 1 st, 2011 and

3 2015 Highlights

4 2015: another year of strong performance Solid EBITA growth: +4.7% Group margin up 18 bps Excellent cash conversion: 105% Continued growth against contrasted economic backdrops Revenue up 1.8% Dynamic and focused M&A activity 8 acquisitions in 2015 Adjusted 1 EPS: 1.25 Dividend per share 2 : 0.50 Notes: 1 Pro forma for the IPO and adjusted for intangible amortisation and exceptional items 2 Subject to shareholders approval at the Annual General Meeting on May 25 th,

5 Uninterrupted revenue growth, margin expansion and excellent cash conversion Revenue Revenue CAGR: 9% 98 acquisitions since 2006 EBITA EBITA CAGR: 17% +340 bps margin expansion Cash conversion 1 Regularly at or above 100% Quality of earnings / rigorous WC management 2,332 2,652 3,116 3,625 3,664 3,661 3,984 4,115 4,563 5,200 5, % R % % % % % % % % % % 176% 156% 124% 110% 106% 100% 102% 105% 96% ( m) 2014R ( m) % 3 Notes: 1 Cash conversion is defined as Cash Flow from Operations divided by EBITA. Cash Flow from Operations corresponds to EBITA, plus depreciation, plus change in net working capital and in provisions related to expenses and income included in the EBITA, less capital expenditures (excluding investments for acquisitions) 2 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) PF EBITA margin 5

6 2015 business highlights Focus on profitable growth reflected in improved margins and excellent cash conversion Excellent progress in the implementation of the SPIE model in Germany, delivering significant improvements in margin and cash Resilient performance from our core Oil & Gas business Growing ICT expertise and footprint across the Group 6

7 Growing ICT expertise and footprint SPIE GmbH Finanz Informatik TFM (management, maintenance), warranty management, control of thirdparty service, on-call duty, Hotline. Operating of a data center with the highest demands on availability, very low response times, high qualification requirements for personnel. SPIE Nederland - University Medical Center Groningen Delivery and installation of ICT racks, network cabling and power distribution for the UMCG datacenter SPIE Communications COP21, Ministry of Foreign Affairs and Ministry of Ecology Installation of cabling and unified communications infrastructure and 24/7 IT managed services for a major international political event SPIE ICS City of Berne Implementation of the USP Secure Entry Server, a security solution developed by United Security Providers, which guarantees complete security of the information and data accessible via the Web applications and portals of the city of Berne 7

8 8 bolt-on acquisitions in 2015 Combined revenue of 184m on a full-year basis United Kingdom Leven Energy Services Engineering and utility services for distribution network operators 2014 revenue: 52m CRIC Belgium HVAC installation and maintenance 2014 revenue: 4m Numac Netherlands Industrial maintenance and technical services 2014 revenue: 57m Jansen Venneboer Engineering, inspection and maintenance of wet infrastructure 2014 revenue: 18m Germany Thermat France Heating, plumbing and ventilation 2014 revenue: 2m Entreprise Villanova High and low-voltage electrical installations 2014 revenue: 2m Hartmann Elektrotechnik ICT and electrical engineering services for automotive, aerospace and petrochemical industries 2014 revenue: 36m Cromm & Co Communication, data networks and optic fiber installation and services 2014 revenue: 1m 8

9 SPIE business model: a virtuous cycle of growth Growth Margins Cash Dividends 0.50 per share 1 Solid Total Growth Operational Discipline Cash Conversion Deleveraging 2.4x Bolt-on acquisitions Revenue: +1.8% EBITA: +4.7% EBITA margin: +18 bps 105% 184m of revenue acquired 2015 results Notes: 1 Subject to shareholders approval at the Annual General Meeting on May 25 th,

10 2015: successful IPO June 2015: IPO and refinancing December 2015: success of employee offering Total offering size: 1.0bn, of which issuance of new shares : 0.7bn Successful refinancing completed 43% subscription rate at Group level About employees now shareholders of SPIE Shareholding structure as at Dec. 31 st, 2015 Consortium 41.4% CDPQ 1 CD&R: 63.4% Ardian: 17.1% CDPQ: 19.5% 4.0% 4.7% Employees Public 39.5% 10.5% Managers Notes: 1 Stake directly held by Caisse de Dépot et Placement du Québec 10

11 Financial Results

12 Income statement highlights m R 1 Var. Revenue 5, , % EBITA % EBITA margin 6.6% 6.4% +18 bps Cost of net debt (75.0) (165.4) Reported net income 38.3 (18.6) Adjusted 2 net income n.a. Adjusted 2 EPS ( ) 1.25 n.a. Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 2 Pro forma for the IPO and adjusted for amortisation of allocated goodwill and exceptional items 12

13 Continuous margin improvement and EBITA growth Group EBITA margin Group EBITA ( m) +4.7% 6.1% 6.5% 6.4% 2013 pro forma 1 : 6.2% 6.4% 6.6% m R R Note: 1 Pro forma financial information including all acquisitions carried out during 2013, in particular the Hochtief Service Solutions activities, as if such acquisitions had been carried out as of January 1 st, Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 13

14 Revenue growth against contrasted economic backdrops Revenue change ( m): +1.8% 5, % % % , R Organic growth FX Acquisitions 2015 Note: Revenue figures above do not include the contribution from our Portuguese operation, which is now reported under IFRS 5 as discontinued operation (2015 revenue: 17m) Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 14

15 Another year of strong cash conversion 106% 100% 110% 102% 105% 100% Unabated focus on quality of earnings and rigorous working capital management 15

16 Key operating cash flow drivers Negative working capital improved Inherent low capex requirement Working capital in days of revenue m (26) (26) (22) (22) Dec-12 Dec-13 Dec-14 Dec % 0.6% 0.6% 0.5% Dec-12 Dec-13 Dec-14 Dec-15 Capex % of revenue 16

17 Cash flow statement m EBITA Depreciation Capex (31.6) (24.7) Change in working capital and provisions 12.2 (0.6) Operating cash flow Taxes (68.7) (53.1) Net interest (101.2) (106.1) Other 1 (20.6) (1.8) Free cash flow Acquisitions (33.4) (74.2) Free cash flow after acquisitions Other (10.8) Total cash flow Note: 1 Includes cash restructuring costs, discontinued activities, acquisition costs and other items 2 Includes debt repayment and associated costs, capital increases and associated costs and IPO project costs 17

18 Significant deleveraging 1, x 1,251 1,330 1, x 3.5x 3.4x x Jun-14 Dec-14 Mar-15 Jun-15 Dec-15 1 Net debt ( m) Net Debt / LTM EBITDA 2 Two notches rating improvement to BB (Standard &Poors) and Ba3 (Moody s) post IPO Notes: 1 Proforma for the IPO 2 Based on proforma EBITDA 18

19 Recommended dividend for per share 1 To be paid in cash 2015 Adjusted 2 net income ( m) Adjusted 2 net income per share ( ) 1.25 Pay-out ratio 40% Total recommended dividend ( m) 77.1 Recommended dividend per share ( ) 0.50 Ex-date: May 27 th, 2016 Payment date: May 31 st, % pay-out ratio in line with medium-term guidance Notes: 1 Subject to shareholders approval at the Annual General Meeting on May 25 th, Pro forma for the IPO and adjusted for amortisation of allocated goodwill and exceptional items 19

20 Business Review

21 SPIE in 2015 Further progress in growing our pan- European footprint Balanced activity portfolio (2015 revenue) North-Western Europe 25% Oil & Gas and Nuclear 15% 2014: 16% France 43% 2014: 46% Information and Communications technology Services 22% 2014: 21% Technical Facility Management 34% 2014: 34% 2014: 23% Germany & CE 17% Mechanical and Electrical Services 44% 2014: 45% 2014: 15% 21

22 EBITA margin improvement in all segments France Germany & Central Europe 2.3bn 6.9% +15 bps 0.9bn 4.0% +44 bps 2015 revenue 2015 EBITA margin vs revenue 2015 EBITA margin vs North-Western Europe Oil & Gas and Nuclear 1.3bn 4.6% +6 bps 0.8bn 9.7% +66 bps 2015 revenue 2015 EBITA margin vs revenue 2015 EBITA margin vs

23 France Revenue and EBITA ( m) 2, % 2, % R Revenue EBITA EBITA margin 2015 Revenue change -4.1% -4.1% 0.0% 0.0% Organic growth FX Acquisitions 2015 highlights Successful positioning in a challenging environment Market share gains in Telecoms Good year in Industrial (aerospace, food and pharmaceutical) Continued weakness of public sector investment Building on our ICT strengths New contracts with enlarged scope Broadened expertise in data centres, network security and big data Active steps taken to manage margins Strict order selectivity Proactive adjustment of highly flexible cost base +15 bps margin increase 2016 outlook Trend expected to improve slightly over the course of 2016 Dedicated national organisations for Tech FM, and Infra- Telecom activities to take advantage of growth opportunities Industrial and ICT to progress further Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 23

24 Germany and Central Europe Revenue and EBITA ( m) 2015 highlights % 3.5% Germany: strong 2015 performance Successful implementation of the SPIE business model Positive commercial synergies from acquisitions Dilutive legacy contracts exited with negative impact on revenue +86 bps margin increase in Germany 2014R Revenue EBITA EBITA margin 2015 Revenue change +14.4% -0.2% +2.6% +12.0% Organic growth FX Acquisitions Switzerland temporarily impacted by portfolio alignment and integration Significant improvement in working capital and cash management 2016 outlook Positive momentum in underlying businesses Potential for further margin increase as SPIE model further embedded Rich pipeline of acquisition targets Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 24

25 North-Western Europe Revenue and EBITA ( m) 2015 highlights 1, % 1, % Improved margins and revenue Significant revenue from recent acquisitions Good organic growth in the Netherlands and Belgium Revenue contraction in UK and Morocco due to strict contract selection 2014R Revenue EBITA EBITA margin Margins up 10 to 20 bps in 3 core geographies Portuguese operation discontinued 2015 Revenue change +10.3% -0.8% +3.9% +7.1% Organic growth FX Acquisitions 2016 outlook Positive outlook in The Netherlands and Belgium with good infrastructure and industrial markets Positive impact of enriched offering in the UK New business to be derived from expanded European footprint Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 25

26 Oil & Gas and Nuclear Revenue and EBITA ( m) 9.7% 9.0% R Revenue EBITA EBITA margin Oil & Gas Core service activities proved resilient in a difficult industry context: margins protected revenue decline limited (-5.7% at cst FX) Contraction of OCTG 2 activity : -38% y-o-y at cst FX, but limited Nuclear EBITA impact 2015 highlights Reaffirmed position as a key player translating into growth in both margins and volumes +66 bps segmental margin increase 2015 Revenue change -5.1% -10.0% +5.0% 0.0% Organic growth FX Acquisitions 2016 outlook Expected resilience of core Oil & Gas activities Successful diversification in downstream activities Further drop in volumes in the OCTG 2 activity expected Nuclear: continued steady growth on the back of extended range of services Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 2 Oil Country Tubular Goods 26

27 Delivering on our proven M&A strategy Since July bolt-on acquisitions 8 in 2015 Our track record Over 510m invested 51m in 2015 Average EBITA multiple 1 of 5.7x 2015: 5.3x Bolt-on acquisitions delivered on average 3.5% quasi-organic growth over the past 10 years 2 Average: +3.5% 1.9% 5.0% 3.2% 4.3% In m Number of bolt-ons Revenue acquired Acquisition spend % 2.9% 3.2% 5.4% 4.4% 3.4% Local density Service offering expansion Geographic expansion Very promising pipeline for 2016 and beyond Note: 1 Before synergies and return on WC improvements 2 Growth from bolt-on M&A (% above organic growth p.a. excluding UK and Germany platform acquisitions) 27

28 2016 outlook We expect 2016 to be another year of EBITA growth, excellent cash conversion and strong M&A activity Excluding Oil & Gas, we expect positive organic growth, on the back of good underlying trends in Energy Efficiency and ICT Trend in France expected to improve slightly over the course of the year Continuing positive momentum in both North-Western Europe and Germany & Central Europe Oil & Gas core services activities should again prove resilient and report a moderate organic contraction, while we expect a further drop in the less profitable OCTG activity Group revenue, including acquisitions should grow by about 5% excluding Oil & Gas Continuous flow of bolt-on acquisitions, with total revenue acquired in 2016 in the order of 200m 10 to 15 bps increase in Group EBITA margin with improvements expected at all 4 segments 100% cash conversion 28

29 Appendix 1 Additional Business Information

30 What we do Illustrative examples of services Mechanical and Electrical Services (44% of revenue 1 ) Electrical services General electric installation Industrial processes and automation Building technology External networks and public lighting Electronic security and building environment Electronic security systems Mechanical services HVAC Mechanical, hydraulic and pneumatic assemblies Piping Rotary machines, compressors, pumps, motors and turbines Boiler systems Refrigeration Fire protection Smoke removal Information & Communications Technology Services (22% of revenue 1 ) Voice systems Telephony over IP Data systems Data storage IP video surveillance Information technology Desktops Servers Telecom networks Technical Facility Management (34% of revenue 1 ) Technical maintenance and upgrade of buildings in private and public sector Industrial maintenance Energy saving solutions Note: group revenue 30

31 The largest European independent multi-technical services provider in highly fragmented markets High Technical focus Building and Facility 5 0 (5) Global Corporate Services 1 Low Local Geographic (10) footprint Divisions of large groups Independents Pan-European Source: SPIE estimates based on industry and companies' information Note: Bubble size corresponds to revenue for the entity (mostly 2014 data) 1 Including acquisitions of Norland Managed Services Ltd and GWS 31

32 Expanding ICT capabilities IT infrastructure - Communication networks Telecom Infrastructure - Fix and mobile Electrical / Instrumentation Automation and Software Building Technologies - Integrated Security & Safety % of Group 2015 ICT revenue 56% 18% 15% 11% Capabilities IP video protection Telephone over IP Data storage and servers Broadband and high-speed broadband networks Wireless communication Backbone equipment Long-distance networks Overhead systems (3G/4G) Cloud Computing Remote management and maintenance Smart and tele-metering Work stations, VDI networks (voice, data, images) Information system security Broad universe of clients Key partners 32

33 Strong secular drivers Green economy / Energy efficiency Shifts in mix of energy production and distribution Deployment of new technologies and service innovation Renewal and upgrade of customer's assets Tightening environmental and energy efficiency regulation Growing importance of environmental values Increasing energy consumption and prices driving demand for energy efficiency solutions and savings Governments implementing financial incentives to favour switch to renewable energies Steadily growing renewable energy production (solar, wind, etc.) Shift in energy sources reshaping distribution infrastructure Continued investments in energy infrastructure Increasing technical complexity of buildings and infrastructure (automation, integrated systems and solutions, etc.) Communication technologies and managed services Increasing share of technology in building and infrastructure cost Visible replacement pipeline transport, energy transmission, distribution and telecommunication Increasing need of upgrade to comply with regulation Increasing complexity of assets driving outsourcing trends 33

34 SPIE today Growing pan-european footprint Balanced activity portfolio Continued focus on Asset Support (2015 revenue) North-Western Europe 25% Oil & Gas and Nuclear 15% France 43% Technical Facility Management 34% Mechanical and Electrical Services 44% New Facilities 19% Germany & CE 17% Information & Communications Technology Services 22% Asset Support 81% 38,000 employees ~600 locations 34

35 Appendix 2 Additional Financial Information

36 Revenue and EBITA by segment Group France Germany & CE North- Western Europe Oil & Gas and Nuclear Holding R 1 Change Revenue 5, , % EBITA % Margin 6.6% 6.4% +18 bps Revenue 2, ,389.0 (4.1)% EBITA (2.0)% Margin 6.9% 6.8% +15 bps Revenue % EBITA % Margin 4.0% 3.5% +44 bps Revenue 1, , % EBITA % Margin 4.6% 4.5% +6 bps Revenue (5.1)% EBITA % Margin 9.7% 9.0% +66 bps EBITA % Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 36

37 Consolidated income statement m R 1 Revenue from ordinary activities 5, ,368.1 Other income Operating expenses (5,148.5) (5,112.3) Recurring operating income Other operating income (loss) (47.5) (36.2) Group operating income Net income / (loss) from companies accounted for under the equity method Operating income Cost of net financial debt (147.5) (221.4) Other financial income and expenses (20.3) (4.3) Pre-tax income Income tax expense (57.3) (39.4) Net profit from continuing operations 42.7 (13.9) Net profit from discontinued operations (4.4) (4.7) Net income 38.3 (18.6) Net income from continuing operations attributable to: Owners of the parent 49.7 (13.6) Non-controlling interests (7.0) (0.3) Net income attributable to: Owners of the parent 45.3 (18.4) Non-controlling interests (7.0) (0.3) Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 37

38 Income statement bridges Revenue to Revenue from ordinary activities EBITA to Operating income m R 1 Revenue as per management accounts 5, ,200.4 SONAID Holdings activities Others (1.1) 0.4 Revenue from ordinary activities 5, ,368.1 m R 1 EBITA Amortisation of allocated goodwill (36.1) (50.1) Discontinued activities and restructuring costs (17.8) (23.3) Financial commissions (1.8) (2.0) Non-controlling interests IPO and employee shareholding plan costs (29.6) (10.8) Others (1.4) (1.7) Operating income Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 2 SONAID (OCTG activity joint-venture) is entered in the consolidated account using the full consolidation method while it is integrated on a proportional basis in our management accounts (55%) 3 Minority stake in SONAID 38

39 Adjusted net income and income tax rate normalization Pre-tax income to Adjusted net income m 2015 Pre-tax income 95.6 Cost of net debt adjustment Restatement of exceptional items, incl. IPO costs 51.9 Adjusted pre-tax income Adjusted tax (99.1) Effective tax rate 39% Add-back amortisation of allocated goodwill 36.1 Adjusted Net income

40 Consolidated balance sheet m Dec-2015 Dec-2014R 1 Intangible assets Goodwill 2, ,123.2 Property, plant and equipment Investments in companies accounted for under the equity method Non-consolidated shares and long-term borrowings Other non-current assets Deferred tax assets Total non-current assets 3, ,339.1 Inventories Accounts receivables 1, ,555.3 Current tax receivables Other current assets Other current financial assets Short term deposits Cash and cash equivalents Total current assets from continuing activities 2, ,421.7 Assets classified as held for sale Total current assets 2, ,429.7 Total assets 5, ,768.8 m Dec-2015 Dec-2014R 1 Share capital Share premium 1, Consolidated reserves 29.9 (21.8) Net income attributable to owners of the parent 45.3 (18.4) Equity attributable to owners of the parent 1, Non-controlling interests (1.3) 7.0 Total equity 1, Interest-bearing loans and borrowings 1, ,223.2 Non-current provisions Accrued pension and other employee benefits Other long-term liabilities Deferred tax liabilities Total non-current liabilities 1, ,870.2 Trade and other payables Interest-bearing loans and borrowings (current portion) ,182.2 Current provisions Income tax payable Other current operating liabilities 1, ,269.4 Total current liabilities from continuing activities 2, ,526.3 Liabilities associated with assets classified as held for sale Total current liabilities 2, ,535.4 Total liabilities 5, ,768.8 Notes: 1 Restated in accordance with IAS 19, IFRIC 21 and IFRS 5 (refer to the notes to the 2015 consolidated financial statements for further details) 40

41 Net debt computation Gross financial debt Cash m Dec m Dec Interest-bearing loans and borrowings (non-current portion) Short term deposits Interest-bearing loans and borrowings (current portion) Cash and cash equivalent Loans and borrowings per Balance Sheet 1,517.5 Gross cash per Balance Sheet Capitalised borrowing costs 14.5 Accrued interest (0.3) Others (1.0) Cash held in discontinued operations (net) 1.4 Gross financial debt (a) 1,531.0 Gross cash (b) Net debt Consolidated Net debt (a) (b) Unconsolidated net cash (1.6) Net debt

42 Employee benefit obligations Balance sheet provision Key considerations m December 2014 December 2015 Total IFRS provision Increase in total IFRS provision is mostly due to Switzerland: Decrease in discount rate Currency effect o/w French one-off retirement indemnity Corresponds to French Indemnités de départ en retraite (IDR), not considered a debt-like item o/w Germany o/w others (Switzerland) Unfunded part of the SPIE GmbH pension plan Swiss obligations are entirely covered by insurance policies Net financial liabilities associated with German unfunded liabilities IFRS provision Deferred tax assets (24) (23) Deferred tax asset corresponding to 31% of IFRS provision Net liability

43 Next events: April 29 th, 2016: Q Financial Information May 25 th, 2016: Annual Shareholders Meeting July 29 th, 2016: 2016 Half Year Results IR contact: Thomas Guillois +33 (0) New SPIE IR App launched March 10 th, 2016 Available for ipad, iphone and Android devices