Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (January 2016)
30 slides from Orascom Construction's investor presentation, January 2016
Slide 1: Corporate Presentation January 2016
Corporate Presentation January 2016
Slide 2: Highlights
Highlights Global contractor with a leading market position in MENA and US infrastructure and industrial sectors – Backlog of USD 6.7 billion as of 30 Sept 2015 and pro forma backlog of USD 8.4 billion including our 50% share in BESIX – 9M 2015 revenue: USD 3.0 billion; EBITDA: USD 163 million; ne
Slide 3: Strong Track Record of Growth and International Expansion
Strong Track Record of Growth and International Expansion 2005 - 2014- 1950 1985 1999 2002 2004 2009 2011 2012 2008 2016 Significant backlog growth Formed Orascom Acquired Weitz Demerged from Founded by Launched with major awards Awarded Saudi Ltd (60% in 2012 to OCI N.V. and lists Onsi Sawiris Cont
Slide 4: Strategic Geographic and Sector Diversification
Strategic Geographic and Sector Diversification Algeria Rest of World 1.1% of Backlog 3.9% of Backlog United States 38.0% of Backlog Egypt 46.4% of Backlog Saudi Arabia 10.6% of Backlog Established in 1950 Established in 1985 Established in 1855 and is present in Established in 1909 Leadin
Slide 5: Healthy Backlog Level Secures Future Revenue Growth
Healthy Backlog Level Secures Future Revenue Growth The Group continues to target infrastructure and industrial projects in existing and select new MENA markets and expects sustained growth in Weitz and Contrack Watts Drive in Egypt infrastructure projects and Weitz third-party contracts led to a
Slide 6: Strategic Backlog Diversification
Strategic Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Rest of World 3.9% OCI N.V. Commercial 17.3% 15.7% USA 38.0% Egypt 46.4% Private Industrial 22.5% 21.7% Infrastructure Public 61.0% 61.8% Algeria 1.1% Saudi Arabia 10.6% Backlog by Brand Backlog by Currency Po
Slide 7: Backlog Evolution
Backlog Evolution Backlog by Geography Backlog by Sector $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn 0.3 1.2 0.3 0.6 2.5 1.5 0.9 0.7 2.4 0.1 1.9 0.3 0.7 1.4 0.6 0.7 1.7 0.5 1.4 0.2 0.3 1.1 0.2 0.6 0.1 0.1 1.2 4.1 0.6 0.8 3.1 2.8 3.0 2.6 1.8 2.1 1.6 1.2 1.5 2011 2012 2013 20
Slide 8: Infrastructure Investments to Provide Recurring Cash Flows and Growth
Infrastructure Investments to Provide Recurring Cash Flows and Growth Orascom Construction is Focused on Expanding its Infrastructure Investments Portfolio The Group benefits from an attractive structure whereby it is the builder, owner and operator of an infrastructure asset Attractive Investme
Slide 9: Well Positioned For Further Expansion in the Power Generation Sector
Well Positioned For Further Expansion in the Power Generation Sector Leading power player with a track record of c.17,000 MW of power generation projects in MENA Strong track record in conventional and renewable energy cements the Group as a leading MENA EPC power contractor and positions the Grou
Slide 10: Growing US Business and Track Record
Growing US Business and Track Record Established to Pursue US Acquiring Strong Organically Strengthening Implementing MENA Government Work Presence Within the US US Operations Business Model in the US Established in 1985 to work on US Acquired In 2012, allowing the Established in 2013 to devel
Slide 11: Strategic Investment in BESIX: 53% of Backlog in MENA
Strategic Investment in BESIX: 53% of Backlog in MENA Highlights(1) An international Belgian construction player founded in 1909 OC acquired 50% of BESIX in a joint leverage buyout in partnership with BESIX management in 2004 Key strategic player that complements OC, allowing for joint coopera
Slide 12: Construction Materials and Industrial Property Portfolio
Construction Materials and Industrial Property Portfolio Currently benefitting from increase in construction and industrial activity and well-positioned for further spending Proportionate equity value of portfolio exceeds USD 70 million as of 30 Sept 2015 Currently experiencing increased demand la
Slide 13: Strong Financing Capabilities
Strong Financing Capabilities Leverage our expertise to secure debt for complex industrial and infrastructure projects worldwide across several industries Debt raised in various regional and international markets including Egypt, Algeria, Saudi Arabia, UAE, Nigeria, Pakistan, Iraq, the Netherlan
Slide 14: Financial Section
Financial Section
Slide 15: Summary Financials
Summary Financials Strong operational performance led to significant improvement in revenue, EBITDA and net income during 9M 2015 ‒ Revenue of USD 3,019.6 million and EBITDA margin of 5.4% in 9M 2015, in line with strong H1 2015 performance ‒ Egypt accounted for 40% of total revenue during 9M 2015
Slide 16: Net Cash Position as of 30 Sept 2015
Net Cash Position as of 30 Sept 2015 Significant cash collection and repayment of debt during Q3 2015 Deleveraged position and strong capital structure allows the Group to aggressively implement its growth strategy Evolution of Net Debt Pre-demerger Sustained deleveraging $796 $807 $589 $564 $524 $4
Slide 17: 9M 2015 Pro Forma Financials & Backlog – Consolidating 50% of BESIX
9M 2015 Pro Forma Financials & Backlog – Consolidating 50% of BESIX USD million Orascom Construction 50% of BESIX Pro Forma Combined Pro Forma Backlog by Geography Rest of World Revenue 3,019.6 894.8 3,914.4 Europe 2.6% 9.1% EBITDA 163.1 31.3 194.4 Egypt 38.6% Net Income(1) 51.7(2) 12.6 64.3 USA 30.
Slide 18: Income Statement
Income Statement USD million 9M 2015 Q3 2015 Revenue 3,019.6 1,145.2 Cost of sales (2,788.2) (1,054.4) Gross profit 231.4 90.8 Margin 7.7% 7.9% Other income 14.4 8.7 Selling, general and administrative expenses (125.0) (50.9) Results from operating activities 120.8 48.6 EBITDA 163.1 61.7 Margin 5.4%
Slide 19: Balance Sheet
Balance Sheet USD million 30 Sept 2015 1 Jan 2015 ASSETS Non-current assets Property, plant and equipment 259.2 272.3 Goodwill 13.8 12.4 Trade and other receivables 127.7 117.2 Investment in associates and joint ventures 360.1 389.4 Deferred tax assets 5.1 3.9 Total non-current assets 765.9 795.3 Cu
Slide 20: Balance Sheet
Balance Sheet USD million 30 Sept 2015 1 Jan 2015 EQUITY Share capital 118.0 - Share premium 772.8 - Reserves (89.0) (17.0) Retained earnings 86.9 744.7 Equity attributable to owners of the Company 888.7 727.7 Non-controlling interest 72.7 76.7 TOTAL EQUITY 961.4 804.4 LIABILITIES Non-current liabil
Slide 21: Cash Flow Statement
Cash Flow Statement USD million 30 Sept 2015 Net profit 70.0 Adjustments for: Depreciation 42.3 Interest income (10.2) Interest expense (including gains / (losses) on derivatives) 28.6 Foreign exchange gain / (loss) and others 9.1 Share in income of equity accounted investees (17.6) Loss from acquis
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 30 Sept 2015 Investment in subsidiary, net of cash acquired (2.7) Investments in PPE (53.6) Proceeds from sale of property, plant and equipment 9.2 Cash flow from / (used in) investing activities (47.1) Proceeds from borrowings 399.8 Repayments of borrowings (494.9) O
Slide 23: Appendix
Appendix
Slide 24: Board of Directors
Board of Directors Chairman CEO Non-Executive Nassef Sawiris Osama Bishai Salman Butt Non-Executive Board Non-Executive Executive Board Member Member CEO CFO CEO of OCI N.V. Orascom Construction OCI N.V. Non-Executive Independent Non-Executive Arif Naqvi Sami Haddad Khaled Bichara Azmi Mikati Non-Ex
Slide 25: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value Shareholder return: IRR of c.40% on US$ basis for OCI S.A.E. / OCI N.V. from IPO in 1999 to demerger in March 2015 – Shareholder return driven by strong longstanding leadership along with investment vision of principal shareholders Strategy
Slide 26: Longstanding Position as Global Contractor of Choice
Longstanding Position as Global Contractor of Choice Track Record and Competitive Strengths Tradition: construction has been the core business since inception in 1950 – Orascom Construction is now a leading global company employing c 57,000 people, with over 60 years of experience in MENA markets
Slide 27: Commercial Strategy
Commercial Strategy Strategic Market and Geographic Expansion Establish and Leverage Strategic Partnerships and JVs Expand market presence as an EPC contractor in our core Work in partnership with industry leaders to increase success markets in MENA and USA rate in obtaining new project work H
Slide 28: Pursuing Value Accretive Investments
Pursuing Value Accretive Investments Construction business was integral to OCI’s value creation story: – Developed and incubated businesses both independently and with partners for nearly 20 years Key executives have been with the Group for 10+ years, guaranteeing OC’s continuity in its ability
Slide 29: Important Notice and Disclaimer
Important Notice and Disclaimer This document has been provided to you for information purposes only. This document does not constitute an offer of, or an invitation to invest or deal in, the securities of Orascom Construction Limited (the “Company”). The information set out in this document shall n
Slide 30: www.orascom.com
Contact Investor Relations: Hesham El Halaby hesham.elhalaby@orascom.com T: +971 4 401 9191 NASDAQ Dubai: OC EGX: ORAS www.orascom.com
Orascom Construction — Investor Presentation (January 2016) on 6ix