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O&M in the Last Mile Ezentis manages, maintains and deploys infrastructure for telecommunications and utilities companies. Focus on Latin America where Ezentis activity represents 91,3% of total Group revenues. The company employs 8,500 professionals, 3,500 vehicles and has managed more than 119 workplaces. It aims to be the strategic partner for its customers with a key position in the "last mile" for energy and telecommunications infrastructures. Led by a committed management team which joined the Company in late 2011. 90% of Ezentis clients are leaders in their respective markets. 2
Contents 1. Main aggregates 2. 2014-2017 Strategic plan - Aggregates and pillars 3. Conclusions and outlook for 2015 2. Relevant events 4 18 19 21 3
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Performance in 1 st Half of 2015 1. Main aggregates: Summary Revenue of EUR 155.5 million (+44% on 1H 2014) Increase in sales mainly due to organic growth Latin America continues to be the main driver of growth with 91,3% of total sales EBITDA of EUR 11.4 million (+88% on 1H 2014) Improved EBITDA margin: 7,3% vs. 5,6% 1H 2014 Rollout of efficiency and productivity measures Backlog of EUR 477 million at end of 1H 2015 Outlook for contracts in the coming months in line with the company s commercial planning. Impact of new fees and growth of installed base of existing contracts amounting to 138.5 million Euros Net Result amounted to EUR -537 thousand (+274% on 1H 2014) Exchange differences had a negative impact of EUR 1.8 million on the financial result Better financial management that reduces weight on sales of Financial Costs in 1S 2015 by 0.9 percentage points compared to 1H 2014 Non-recurring profit of EUR 3.1 million mainly as a result of active financial management carried out as a part of the tax planning measures currently in place at the Latin American subsidiaries. 5
Growth, development of a solid backlog and balance sheet 1. Main aggregates: Summary Performance of main aggregates Sales EBITDA EBITDA / Sales (%) EZENTIS Group 108.2 155.5 150.5 EZENTIS Group 6.1 11.4 10.3 EZENTIS Group 5.60% 7.30% 6.90% 1H 2014R 1H 2015R 1H 2015 Constant (1) Backlog performance Balance sheet performance 423 205-156 5 477 Equity 36.4 35.1 Working Capital 3.2 3.4 2014 Year-end backlog Contracts (2) Production Currency Effect 1H2015 Total Backlog 2014R June 2015R (1) Includes the changes in recurring business without taking into account the effect of exchange rate changes in each country (2) Impact of new fees and growth of installed base of existing contracts amounting to 138.5 million Euros 6
Income Statement 1. Main aggregates: Income Statement Thousands of Euros 1H2015 1H2014 VAR. % Sales 155,593 108,166 47,427 44% EBITDA 11,426 6,085 5,341 88% Asset Depreciation -4,071-2,430-1,641-68% Intangibles assets Depreciation (PPA) -1,061-527 -534-101% Variation in provisions 35 0. EBIT 6,330 3,128 3,202 102% Financial results -7,830-5,099-2,731-54% Finance Income/ finance costs -6,048-5,117-931 -18% Exchange differences 1) -1,782 18-1,800 Investment in associates and disinvestments 295 123 172 Non-recurring profit (loss) 2) 3,148-65 3,083 n/a Profit before taxes 1,943-1,913 3,856 Minorities -57 709-766 Taxes -2,396-606 -1,790-295% Discontinued operations -26-197 171 87% Net Profit (Loss) -537-2,007 1,471 73% Note: H refers to Half-year or Semester (1) Exchange differences arising mainly due to the appreciation of the USD (2) Non-recurring profit (loss) explained mainly by tax planning in Brazil (EUR 3.3 million). 7
Growth in sales (+44%) in current terms 1. Main aggregates: Sales 1H 2014R 1H 2015R JUN 2015 Constant (2) Constant Growth Current Group 108.2 155.5 149.9 39% 44% Latin America 98.8 142.0 136.3 38% 44% Spain 7.7 14.3 14.3 86% 86% Other (1) 1.7-0.7-0.7 Analysis of impacts on sales 1H 2015 MillIons of Euros 44% 5.5 41.8 155.5 108.2 1H 2014R Constant growth Currency effect-current (3) 1H 2015R (1) Includes the activity in Morocco (until May 2014) Corporation, consolidation adjustments (2) Includes the changes in recurring business without taking into account the effect of exchange rate changes in each country (3) Includes the effect of exchange rate changes in each country 8
Geographical and industrial diversification 1. Main aggregates: Sales Changes in sales by geographical area MillIons of Euros Detail of Sales 1H 2015R by sector 155.5 Remainder (2) 8.2% 108.2 26.8% 7.1% 18.9% 27.2% 14.5% 0.0% 4.2% 1.3% 31.5% 9.2% 19.6% 22.1% 13.5% 1.7% 2.9% -0.5% Brasil Spain Chile Argentina Peru Caribbean Colombia Other 1) Electricity 21.4% 70.5% Telecom. 1H 2014R 1H 2015R (1) Includes the activity in Morocco (until May 2014), Corporation, consolidated adjustments and US (2) Includes technology, gas, oil, mining, water management and other sectors 9
Major current sales growth (+44%) through geographical and industrial diversification 1. Main aggregates: Sales Major current (+44%) and constant (+39%) growth in sales as a result of the company's organic growth in 2014. Activity in Latin America represents 91.3% of sales vs 92.9% in 1H 2014 The Activity in Chile, Peru and Colombia (countries of the Pacific Alliance) represents 34.8% of total Group Activity in Brazil represents 31.5% of total Group s activity, which has been achieved in just a year and a half Argentina represents 22.1% vs 27.2% of sales in 1H 2014 Mention should be made of the 86% increase in sales in Spain, as a result of the inorganic growth achieved following the acquisition of the Networks Test Group We continue focused on increasing our customer base and business. 10
Growth in EBITDA in current terms(+88%) 1. Main aggregates: EBITDA 1H 2014R Group 6.1 1S 2015R 11,4 JUN 2015 Constant (2) 10.3 Constant Growth Current % EBITDA/Sales JUN 2015R JUN 2014R 69% 88% 7.3% 5.6% Latin America 8.5 12,2 11.1 31% 44% 8.6% 8.5% Spain 0.7 1,4 1.4 100% 100% 9.9% 9.1% Other (1) -3.1-2,2-2.2 Analysis of impacts on EBITDA 1H 2015 Millones de Euros +88% -1,1 11,4 6,1 6,4 1H2014R Constant Growth Currency effect - current (3) 1H 2015R (1) Includes the activity in Morocco (until May 2014), Corporation, consolidation adjustments (2) Includes the changes in recurring business without taking into account the effect of exchange rate changes in each country (3) Includes the effect of exchange rate changes in each country 11
Profitability improvement of 1.7 percentage points due to focus on Quality, Efficiency and Productivity 1. Main aggregates: EBITDA Positive EBITDA performance (+88%) Maturity of organic contracts awarded during Q3 2014 Improved return on EBITDA (7.3% margin on sales vs 5.6% for 1H 2014) In Latam EBITDA growth is 44 % with a margin improvement of 8.6 % vs 8.5% H1 2014 In Spain EBITDA growth of 100%, the margin at 9.9 % vs. 9.1 % in H1 2014 12
EBIT 1. Main aggregates: Profit from operations EBIT EBIT Latam 8.9-1.0 7.9 6.3-1.0 5.3 1H 2015R EBIT Spain Currency effect 1H 2015 Constant 0.8 1H 2015R Currency effect 1H 2015 Constant The impact of the currency effect on EBIT amounted to -1.0 million (from the evolution of exchange rates in Argentina, Peru and Chile) EBIT reached 6.3 million euros, 102% increase compared to 1H 2014. EBIT - Corporation and other Group companies and consolidation adjustments 1H 2015R -3.4 1H 2015R 13
Volume of contracted backlog: EUR 477 million 1. Main aggregates: Backlog 423 205 156 5 477 93.0% 96.2% Latam Latam 2014 final backlog 2015 contracts 2015 production 2015 currency (1) effect 2015 total backlog X1.6 Backlog/Sales 2014 X1.6 Backlog/Sales in last 12 months Outlook for contracts in the next months in line with the company's commercial planning (1) Impact of new fees and growth of installed base of existing contracts amounting to 138.5 million Euros 14
Focus on balance sheet 1. Main aggregates: Balance sheet Thousands of Euros JUN15 R DIC-14 R JUN15 R DIC-14 R Assets Equity and liabilities Equity 35,098 36,443 Non-current assets 106,542 107,189 Property, plant and equipment 20,815 20,713 Non-current liabilities 74,888 73,994 Goodwill 36,346 35,857 Long term borrowings 37,559 36,755 Other intangible assets 13.741 14.990 Non-current financial assets 31,333 32,595 Provisions 31,963 31,609 Investments in associates 174 185 Deferred tax liabilities 4,508 4,656 Deferred tax assets 4,133 2,849 Grants 858 974 Current liabilities 108,012 93,896 Current assets 111,456 97,144 Bank borrowings 19,057 12,782 Sales-related assets 1,195 1,231 Other financial liabilities 13,934 17,419 Inventories 4,272 5,018 Liabilities made available for sale 524 657 Trade and other receivables 87,773 70,802 Trade payables 37,006 30,124 Other current assets 4,620 3,272 Provisions 4,970 3,507 Cash and cash equivalents 13,596 16,821 Current tax liabilities 12,965 11,600 Other current liabilities 19,556 17,807 TOTAL 217,998 204,333 TOTAL 217,998 204,333 15
Focus on financial optimization 1. Main aggregates: Balance sheet Balance key indicators Operating indicators Equity Days 39.1 37.5 Average collection period 42-19.0% 34 2014 1H 2015 1H 2014 1H 2015 Working capital 3.2 3.4 Average period of work in progress 46-1% 46 2014 1H 2015 1H 2015 1H 2015 Nota: H (Half -year values) 16
Reinvestment on business growth 1. Main aggregates: Balance sheet Cash flow statement 2014-1S 2015 ( 6 months ) 7.1 Organic and inorganic growth investment 2.7-3.0-4.1 11.7 16.8-10.4-0.2 13.6 Cash 31/12/2014 Cash operating generation Capital increase and equity instruments Investment in working capital Investment in Capex Amortization of net debt and interest Taxes, currency rates and other Cash 30/06/2015 17
2014-2017 Strategic plan: Aggregates and pillars Aims of 2014-2017 Strategic Plan (1) 2013R 2014R 2017E Jul14-Jun15 12 months Sales 149 257 656 304 Sales Latam 132 236 575 270 Pillars for growth Focus on Latin America Focus on telecommunications and electricity in strategic accounts Organic and inorganic growth geared towards profitability and diversification EBITDA EBITDA margin 4.4 15.3 67 3.3% 5.9% 10.1% 20.6 6.8% Technological capability as edge leveraging service innovation Long-term commitment and vision of the management team Quality, efficiency and productivity (1) Currencies translated at a constant exchange rate (average exchange rate for December 2013 source: Oanda), except for Argentina (exchange rate forward curve at 01/02/14 source: Bloomberg) 1 8 18
Conclusions and outlook for 2015 CONCLUSIONS Solid growth in sales, backlog and business line profitability Balanced Balance-sheet Ezentis consolidation as a benchmark in the field of O & M of basic infrastructures OUTLOOK Consolidation of the Strategic Plan with the acquisition of Ability Continue with improvements in quality, efficiency and productivity O & M sector in continuous growth due to the large investment in basic infrastructures in Latin America. 19
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Relevant events 2. Relevant events for 1H 2015 24-7-2015 Senior Facilities Agreement signed with Highbridge Principal Strategies LLC 17-7-2015 Webcast Call Presentation of 1st Half-Year Results 2015 10-7-2015 Approval of Annual Shareholders Meeting Agreements 26-6-2015 Acquisition of the 45% of Brazilian company Seicom 9-6-2015 Announcement of the General Shareholders Meeting 8-6-2015 Funding commitment and the acquisition of the company Ability 11-5-2015 Contract extension in Brasil and new awarding in Chile 30-4-2015 Presentation of Results 1Q 2015 24-4-2015 Webcast Call Presentation of 1Q Results 2015 14-4-2015 Registration of the special merger between three subsidiaries of the Company 21
22 3 6 This document has been prepared by EZENTIS solely for its use during the presentation of results for the first half of 2015. Accordingly, it may not be disclosed, published or used by any other natural or legal person for any purpose other than that described above without the express consent in writing of EZENTIS. EZENTIS does not accept any liability for the content of the document if it is used for any purpose other than that described above. The information and any opinions or statements contained in this document have not been verified by an independent third party and, accordingly, no express or implied guarantee is provided as to the impartiality, accuracy, completeness or correctness of the information or the opinions and statements expressed herein. Neither Ezentis nor its subsidiaries accept any liability whatsoever, regardless of whether or not negligence or any other circumstance were to exist, for any losses or damages that may arise from any use of this document or the content thereof. This document does not constitute a document of a contractual nature and it may not be used to construe or interpret any contract or any other type of commitment. This document does not constitute an offer or invitation to subscribe or acquire shares, pursuant to the provisions of Spanish Securities Market Law 24/1988, of 28 July, Royal Decree-Law 5/2005, of 11 March, and/or Royal Decree 1310/2005, of 4 November, and the implementing legislation thereof. This document contains information or statements including forecasts of Ezentis' future performance which are subject to risks and uncertainties that may cause actual results and developments to differ from those expressed or implied in such information or statements in relation to forecasts of future performance. The information or statements in relation to forecasts of future performance refer exclusively to the date on which they were expressed, do not constitute a guarantee of future results and have not been reviewed by EZENTIS' auditors. Any decisions based on information or statements in relation to forecasts of future performance are not recommended. All of the information and statements in relation forecasts of future performance included in the document issued by EZENTIS or any of its executives, directors, employees or representatives are expressly subject to the caveats provided. The information and statements in relation forecasts of future performance included in this document are based on the information available at the date of this publication.
Prim, 19 28004 Madrid, España T: +34 902 40 60 82 F: +34 913 605 994 E: info@ezentis.com www.ezentis.com 23