16 slides from Indra Sistemas, S.a. Class A's earnings presentation, Jul 30, 2015
Slide 1: Results 1H15
RESULTS 1H15 July 30th, 2015
Slide 2: Conference Call Details
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: +34 91 789 5143 UK: +44 (0) 203 147 4600 USA: +1 866 388 1927 A recording of the conference call will be available for 30 days
Slide 3: Disclaimer
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 recommendat
Slide 4: Main Headlines
RESULTS 1H15 MAIN HEADLINES Variation Local 1H15 currency / 1H14 reported 1 Revenues (€M) 1,409 -5% / -5% 1,476 • Positive underlying growth (+2%) ex- seasonality 2 EBIT margin • Seasonality, overruns in Brazil and Lithuania, Recurrent (1) -1.8% -9.5 pp 7.7% higher operating costs and lower contribu
Slide 5: Non Recurring Items
RESULTS 1H15 NON RECURRING ITEMS Non recurring items by Concept (€M) Provisions, impairments and over-runs (266) Impairment of Goodwill (101) Impairment of Intangible Assets (7) Impairment of Tax Credit (32) Efficiency improvement costs (17) Total (422) Provisions, impairments and over-runs by verti
Slide 6: Positive Revenues Growth Ex-Seasonality (+2%)
RESULTS 1H15 1 POSITIVE REVENUES GROWTH EX-SEASONALITY (+2%) Sales Reported Growth -5% Sales Growth (ex. elections) +2% €M 21 88 1.476 1.409 1H15 Elections Underlying 1H14 growth 6 Conference Call – Results 1H15 | 6
Slide 7: Revenues by Segment
RESULTS 1H15 1 REVENUES BY SEGMENT Revenues by Segment (€M) Book-to-Bill Local Currency / Reported 1.476 1.409 -5% / -5% 522 35% +3% / +3% 537 38% 1,19x 1,16x 1,08x -9% / -9% 65% 953 872 62% 1,06x 1H14 1H15 1H14 1H15 Solutions Services 7 Conference Call – Results 1H15 | 7
Slide 8: Revenues by Region
RESULTS 1H15 1 REVENUES BY REGION Order Intake (€M) Revenues (€M) Local Currency / Reported Book to bill Local Currency / Reported 1.647 1.583 1,1x -5% / -4% -5% / -5% 1.476 1.409 679 +5% / +5% 45% 1,2x 41% 716 575 +7% / +7% 44% 39% 614 Spain 31% 23% 0,9x 384 502 -29% / -28% 26% +0% / +0% 27% 360 38
Slide 9: Revenues by Vertical
RESULTS 1H15 1 REVENUES BY VERTICAL Revenues by Local Currency / Reported Spain Int. (LC) Vertical (€M) 1.476 1.409 -5% / -5% Energy & 229 +0% / +2% Industry 16% 234 17% Financial 255 17% +6% / +5% Services 269 19% Telecom & 11% 160 -10% / -10% Media 144 10% 291 PPAA & 20% -21% / -21% 231 16% Health
Slide 10: Recurrent EBIT Margin Evolution
RESULTS 1H15 2 RECURRENT EBIT MARGIN EVOLUTION 113 Elections €M FFSS & PPAA Brazil Overruns Lithuania 72 Direct & Indirect Cost EFA T&T & Others 66 -25 EBIT 1H14 Elections & Overruns in Costs, T&T, EFA & EBIT 1H15 Brazil and Lithuania Others Contribution to the EBIT 7.7% -5.0pp -4.5pp -1.8% Margin (
Slide 11: Margin Pressure Remains in Both Services and Solutions, Driving Recurrent EBIT Margin Down
RESULTS 1H15 2 MARGIN PRESSURE REMAINS IN BOTH SERVICES AND SOLUTIONS, DRIVING RECURRENT EBIT MARGIN DOWN 1H14 1H14 16.9% 16,8% 1H15 9.0% 7,2% Solutions 15,0% 1H15 15.0% 1H14 6,6% 9.0% 8,4% 11.7% -1,8% 11,6%8.9% 1H15 Contribution Profit Overheads Recurrent EBIT 5,6% Margin Services 11 Conference Cal
Slide 12: Free Cash Flow Bridge
RESULTS 1H15 3 FREE CASH FLOW BRIDGE 3 €M 135 164 43 7 5 10 6 Free Cash Flow Operating Cash Working Other CAPEX Taxes Others Free Cash Flow 1H14 Flow Capital operating 1H15 changes Others includes: Financial investments & Treasury Stock 12 Conference Call – Results 1H15 | 12
Slide 13: Net Working Capital Evolution
RESULTS 1H15 4 NET WORKING CAPITAL EVOLUTION Net Working Capital Reported NWC Pre-Adjustments 90 81 64 27 -2 29 -13 16 +8 124 -2 132 122 -72 -1 -73 -68 +4 Pre- adjustments 2014 1H15 1H15 Accounts Receivable Accounts Payable Inventory 13 Conference Call – Results 1H15 | 13
Slide 14: Net Debt Bridge
RESULTS 1H15 5 NET DEBT BRIDGE FCF = -164 M€ 18 14 34 18 63 2 16 825 663 Net Debt 2014 Operating Cash Net Working Other Operating Capex Taxes Net interest, Financial Net Debt 1H15 Flow Capital Changes Subsidies & Investments Others & Non-CF items 77 85 825 663 Net Debt 2014 Spanish Rest of the Net D
Slide 15: Debt Structure
RESULTS 1H15 1H15 2014 5 DEBT STRUCTURE (€M) Total % of total Total % of total L/T Debt 929 84% 826 86% S/T Debt 171 16% 131 14% Gross Debt 1.100 100% 957 100% Cash & Others 275 n.m. 294 n.m. Net Debt 825 n.m. 663 n.m. Cost of Net Debt 4,4% 4,5% Gross Debt Maturity Profile Available Credit Facilitie
Slide 16: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com