Slide 1: Corporate Presentation
Grand Egyptian Museum – OC/BESIX JV Corporate Presentation April 2018
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in the MENA and USA ▪ Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shares traded on both exchanges are fungible ▪ Backlog of USD 4.6 billion as of 31 December 2017 and pro forma backlog of
Slide 3: Strong Track Record of Growth and International Expansion
Strong Track Record of Growth and International Expansion History of Creating Value for Shareholders Growing Family Construction Business Incubating Cement, Port & Fertilizer Lines Building a Concessions Portfolio ▪ Roots trace back to 1950s in Egypt where first ▪ Created a top 10 global cement prod
Slide 4: A Wide Range of Capabilities Across Various Geographies
A Wide Range of Capabilities Across Various Geographies Orascom Construction Limited operates under three brands and owns 50% of BESIX Group Orascom Weitz ▪ Established in 1950 ▪ Established in 1855 ▪ Leading MENA industrial and infrastructure contractor ▪ Backlog: USD 414 million ▪ Backlog: USD 3.5
Slide 5: Geographic and Sector Diversification
Geographic and Sector Diversification Algeria Rest of World 1.3% of Backlog 3.7% of Backlog United States 22.6% of Backlog Egypt 68.6% of Backlog Saudi Arabia 3.8% of Backlog Large geographic presence – each region with an established customer base Note: Backlog geographic segmentation is as of 31 D
Slide 6: Select Construction Track Record
Select Construction Track Record • Completed over 17,000 MW of power generation projects in the Middle East Power • Currently constructing 11,250 MW of power generation capacity in Egypt • Key Cairo Metro player since the late 1980s • Over 1,000km of rail projects in the Middle East (mainly Egypt an
Slide 7: Consolidated Backlog Level
Consolidated Backlog Level Current backlog size and quality fully supports the Group’s revenue and profitability targets Focus on pursuing quality projects where the Group has a competitive edge and is confident in the source of funding US backlog complements MENA operations and provides additional
Slide 8: Backlog Diversification
Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Other OCI N.V. USA (OCI N.V.) 3.7% 2.5% 2.5% Private Commercial 13.5% USA 20.0% 28.4% Algeria 1.3% Saudi Arabia Industrial Infrastructure 3.8% Egypt 5.3% 66.3% 68.6% Public 84.0% Backlog by Brand Backlog by Currency Cur
Slide 9: Backlog Evolution
Backlog Evolution Backlog by Geography Backlog by Sector $3.8bn $5.8bn $6.7bn $5.3bn $4.6bn $3.8bn $5.8bn $6.7bn $5.3bn $4.6bn 0.2 1.1 0.3 0.6 2.5 0.3 1.4 0.9 0.2 2.4 0.1 1.9 1.0 1.9 0.7 1.3 0.3 0.7 0.1 0.6 0.2 0.2 0.2 0.2 0.2 1.1 0.1 1.2 4.2 3.7 0.8 3.2 3.1 3.0 3.0 2.8 2.1 1.2 1.5 2013 2014 2015 20
Slide 10: Investment in BESIX Group
Investment in BESIX Group Highlights ▪ 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 ‒ Held value as an investment in associates on Orascom Construction’s balance sheet at a book value o
Slide 11: Pro Forma Snapshot Including BESIX
Pro Forma Snapshot Including BESIX ▪ BESIX continues to report sustained profitability while signing key projects in its core markets in the Middle East and Europe ▪ Standalone backlog of EUR 3.0 billion and new awards of EUR 2.3 billion in FY 2017 ▪ Standalone net cash position of EUR 34 million as
Slide 12: Construction Materials and Investments
Construction Materials and Investments Investments are benefitting from increased construction and industrial activity as well as operational synergies with Orascom and BESIX Company Ownership 2017 Revenue Description ▪ Manufactures and supplies fabricated steel products in Egypt and North Africa –
Slide 13: Proven Financing Capabilities
Proven Financing Capabilities ▪ Funding requirements are supported by strong relationships with international, regional and Egyptian financial institutions (the Bilateral group maintains relationship with more than 40 lending institutions) Facilities & Medium Term ▪ Bilateral facilities with limits
Slide 14: Financial Section
Financial Section
Slide 15: Financial Highlights
Financial Highlights ▪ Adj. net income excluding one-off non-cash tax effect increased 112.5% y-o-y to USD 103.5 million in FY 2017 ‒ Net income attributable to shareholders (after one-off tax effect) increased 61.2% y-o-y to USD 78.5 million in FY 2017 ▪ Consolidated EBITDA increased 115.1% y-o-y t
Slide 16: Summary Income Statement
Summary Income Statement USD million FY 2017 FY 2016 Change Q4 2017 Q4 2016 Change Revenue 3,678.7 4,033.1 (8.8)% 860.4 1,074.0 (19.9)% MENA 2,130.6 2,123.7 0.3% 533.5 632.7 (15.7)% USA 1,548.1 1,909.4 (18.9)% 326.9 441.3 (25.9)% EBITDA 212.9 99.0 115.1% 47.3 (40.4) 217.1% MENA 287.5 309.1 (7.0)% 11
Slide 17: Revenue by Geography
Revenue by Geography FY 2017 Breakdown FY 2016 Breakdown USA (OCI N.V.) USA (OCI N.V.) 13% 16% Egypt USA 47% 29% Egypt 53% USA 31% Other MENA 1% Algeria Other MENA Saudi Arabia Saudi Arabia 1% 3% 3% Algeria 1% 2% USD 3,678.7 million USD 4,033.1 million Grand Egyptian Museum OC/BESIX JV Ain Sokhna Pr
Slide 18: Net Cash Position as of 31 December 2017
Net Cash Position as of 31 December 2017 Net cash position of USD 173.5 million as of 31 December 2017 Evolution of Net Debt Debt and Equity Summary Cash Total debt Net debt USD million 31 Dec 13 1 Jan 15 31 Dec 15 31 Dec 16 31 Dec 17 $807 Cash 420 369 575 507 434 $575 Total debt 807 466 439 303 261
Slide 19: Income Statement
Income Statement USD million FY 2017 FY 2016 Q4 2017 Q4 2016 Results Commentary Revenue 3,678.7 4,033.1 860.4 1,074.0 Revenue: Cost of sales (3,354.0) (3,841.0) (784.5) (1,100.2) ▪ MENA accounted for 58% of total revenue in FY 2017 while Gross profit 324.7 192.1 75.9 (26.2) USA comprised the balance
Slide 20: Balance Sheet
Balance Sheet USD million 31 Dec 2017 31 Dec 2016 Results Commentary ASSETS Non-current assets Non-current assets ▪ PPE of USD 155.4 million, with capex of USD 41.8 million in Property, plant and equipment 155.4 158.4 FY 2017 Goodwill 13.8 13.8 ▪ Investment in associates includes BESIX at an equity
Slide 21: Balance Sheet
Balance Sheet USD million 31 Dec 2017 31 Dec 2016 Results Commentary EQUITY Equity Share capital 116.8 117.8 ▪ The movement in reserves is primarily due to currency Share premium 761.5 768.8 translation differences related to BESIX equity investment Reserves (318.8) (348.4) ▪ Total equity would have
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 31 Dec 2017 31 Dec 2016 Results Commentary Cash flow from operating activities: Net profit 85.1 53.0 ▪ Operating cash flow of USD 1.3 million in FY 2017 as a Adjustments for: result of changes in working capital items, primarily driven by negative operational working
Slide 23: Cash Flow Statement
Cash Flow Statement USD million 31 Dec 2017 31 Dec 2016 Results Commentary Cash flow used investing activities: Investment in PPE (41.8) (91.7) ▪ Total cash used in investing activities decreased 62.9% Proceeds from sale of PPE 11.5 9.9 y-o-y to USD 30.3 million due to lower investments in PPE Cash
Slide 24: Pro Forma Snapshot Excluding Iowa Fertilizer and Natgasoline Projects
Pro Forma Snapshot Excluding Iowa Fertilizer and Natgasoline Projects The long-term underlying business continues to demonstrate healthy performance USD million ▪ The Group’s consolidated performance was impacted by losses in the U.S. operations in FY 2015-2017 FY 2017 FY 2016 Change FY 2015 ▪ Exclu
Slide 25: Appendix
Appendix
Slide 26: Board of Directors
Board of Directors Chairman CEO Jérôme Guiraud Osama Bishai Non-Executive Chairman Executive Board Member Independent Non-Executive Mustafa Abdel- Sami Haddad Khaled Bichara Azmi Mikati Wadood Non-Executive Board Member Non-Executive Board Member Non-Executive Board Member Non-Executive Board Member
Slide 27: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value ▪ Shareholder return: driven by strong longstanding leadership along with investment vision of principal shareholders ▪ Strategy as a new company to focus on infrastructure investments to provide steady cash flow and support long-term growth –
Slide 28: 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.72,000 people, with over 60 years of experience in MENA markets
Slide 29: Group Strategy Aimed at Delivering Top and Bottom Line Growth
Group Strategy Aimed at Delivering Top and Bottom Line Growth The Group has focused on creating shareholder value in the process of becoming a leading private sector contractor and an incubator of high-value industrial businesses Commitment instilled in management and founding shareholders to propel
Slide 30: 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 31: 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 32: Contact Investor Relations
Contact Investor Relations: Hesham El Halaby hesham.elhalaby@orascom.com T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com