16 slides from Indra Sistemas, S.a. Class A's earnings presentation, Jul 28, 2017
Slide 1: Results 1H17
RESULTS 1H17 July 28th, 2017
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS The Company will host a conference call for investors and analysts today at 10:00 (CET). Please find below conference call telephone numbers: Spain: +34 917 900 884 UK: +44 (0) 203 147 4607 USA: +1 866 388 1927 Access to the live event: http://event.onlineseminarsolutions.com
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 1H17 MAIN HEADLINES 1 • 1H17 Order Intake and Revenues up +4%, and EBITDA +7% due to Tecnocom’s consolidation 2 • 1H17 Organic revenues (ExTecnocom) -4%. Turn around and speed up expected for 2H17, backed by Elections and some T&D businesses 3 • EBIT margin of 5.6% in 1H17 vs 5.3% in 1H16, d
Slide 5: Revenues Growth +4% in Reported Terms
Results 1H17 REVENUES GROWTH +4% IN REPORTED TERMS 1H17 2Q17 Sales Reported Growth +4% Sales Reported Growth +5% Sales in Local Currency +2% Sales in Local Currency +4% Sales in Organic Terms (Ex-Tecnocom)(1) -4% Sales in Organic Terms (Ex-Tecnocom)(1) -7% Sales in Organic Terms (Ex-Easter)(2) -4% 8
Slide 6: Revenues by Vertical
Results 1H17 REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported -4% / -4% 574 553 Defence & 20% +7% / +7% Security 262 280 20% T&D Transport & 23% 311 -13% / -12% 273 Traffic 20% +7% / +9% 826 758 Energy & +9% / +11% 225 16% Industry 15% 202 Financial IT Services 18% 240 +19% / +21% 291 21
Slide 7: Revenues by Region
Results 1H17 REVENUES BY REGION Revenues (€M) Local Currency / Reported +2% / +4% 1.379 1.332 +9% / +9% 657 Spain 45% 600 48% 322 -11% / -6% 304 America 24% 22% Europe 18% 234 +8% / +8% 253 18% AMEA 13% 176 -7% / -6% 165 12% 1H16 1H17* (*) Displayed data includes Tecnocom consolidation since April 1
Slide 8: Order Intake Up +4% in Reported Terms
Results 1H17 ORDER INTAKE UP +4% IN REPORTED TERMS Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported 654 -22% / -22% 512 23% 363 -28% / -28% +2% / +4% 1,660 Defence & 1,599 261 16% Security T&D 18% 291 -15% / -14% 250 15% Transport & 743 Tr
Slide 9: Brazil
Results 1H17 BRAZIL Order Intake Evolution (%) (local currency) 1H16 1H17 Variation 17% 11% 436.2 473.0 +8% 8% Order Intake 7% 5% Revenues 410.1 373.5 -9% 6M16 9M16 12M16 3M17 6M17 Revenues Evolution (%) EBIT(*) -15.2 -13.5 NA -7% EBIT Margin(*) -3.7% -3.6% +0,1 pp -9% -9% -12% -16% 6M16 9M16 12M16
Slide 10: EBIT Margin Evolution
Results 1H17 EBIT MARGIN EVOLUTION 1H EBIT Margin Evolution 1H EBIT by Divisions 10,4% 77 T&D IT 70 12,6% 11,0% 0,9% 0,9% EBIT 1H16 EBIT 1H17* 1H16 1H17 1H16 1H17* 5,3% +0,3pp 5,6% 1H EBIT Margin Evolution Ex-Tecnocom 2Q EBIT Margin Evolution 73 6,8% 70 4,1% 44 41 EBIT 1H16 EBIT 1H17 5,3% +0,3pp EBI
Slide 11: Strong Operating FCF Generation Due to Operating Improvement
Results 1H17 STRONG OPERATING FCF GENERATION DUE TO OPERATING IMPROVEMENT Quarterly FCF (€M) FY15: €-50M FY16: €184M 1H17: -€31M 137 140 More than €80M of expected collections throughout the first months 47 of 2017 advanced to 4Q16 2 -5 -5 -23 -26 -79 -85 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17
Slide 12: Net Debt Bridge
Results 1H17 NET DEBT BRIDGE Net Debt Bridge – Tecnocom’s split(€M) 185 6 31 745 523 Net Debt 2016 1H17 Free Cash Flow Tecnocom Payment 1H17 Net Debt Net Debt 1H17* Tecnocom Net Debt Bridge – Cash Flow (€M) FCF = €-31M 191 21 8 20 15 63 96 745 523 Net Debt 2016 Operating Cash Net Working Other Opera
Slide 13: Net Working Capital Evolution
Results 1H17 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) 5 DoS from Tecnocom 5 10 consolidation 9 1 10 77 -1 76 5 2 -1 10 94 -81 -82 -76 6 FY16 1H17* Accounts Receivable Accounts Payable Inventory (*) Displayed data includes Tecnocom consolidation since April 18th, 2017 13 Conference Cal
Slide 14: Net Debt Evolution
Results 1H17 NET DEBT EVOLUTION 825 837 Net Debt (€M) (173) (176) 745 Net Debt (187) (Factoring)(1) 700 (187) 659 659 666 (162) (187) (187) Indra Stand-alone 554 Net Debt 523 (187) 532 (187) Net Debt/EBITDA LTM (Times)(2) 6,6 5,9 5,4 4,7 3,1 3,1 ND/ EBITDA 2,9 2,3 2,3 LTM(2) 2,4 Indra Stand-alone ND
Slide 15: Debt Structure
Results 1H17 DEBT STRUCTURE 1H17* 2016 (€M) Total % of total Total % of total L/T Debt 1,170 95% 1,136 95% S/T Debt 114 5% 61 5% Gross Debt 1,284 100% 1,197 100% Cost of Gross Debt 2.3% 2.8% Cash & Others 539 n.m. 674 n.m. Net Debt 745 n.m. 523 n.m. Cost of Net Debt 3.1% 3.3% Available Credit Facili
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