21 slides from Indra Sistemas, S.a. Class A's earnings presentation, Feb 23, 2017
Slide 1: Results FY16
RESULTS FY16 February 23rd, 2017
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: +34 917 900 871 UK: +44 (0) 203 043 2434 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: Index
Results FY16 INDEX 01 Results FY16 02 Our performance since July 2015 03 New value levers going forward (ex-Tecnocom) 4 Conference Call – Results FY16 | 4
Slide 5: Main Headlines
Results FY16 MAIN HEADLINES 1 • Good performance of Order Intake, growing at +6% throughout the year in local currency 2 • Latam revenues increase of +1% in the quarter vs -20% in 9M16 3 • FY16 EBITDA reached €229m (8.5% margin) vs €131m in FY15 (4.6% margin) 4 • FY16 EBIT of €162m (4Q16 EBIT margin
Slide 6: Order Intake Up +6% in FY16 in Local Currency
Results FY16 ORDER INTAKE UP +6% IN FY16 IN LOCAL CURRENCY Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported -1% / -1% 1.259 1.241 +6% / +4% 2.744 2.651 23% 615 -7% / -8% 569 21% Defence & Security T&D 1.218 672 Transport & 44% 24% 644 +6%
Slide 7: LATAM & Forex Contributing Positively in 4Q16
Results FY16 LATAM & FOREX CONTRIBUTING POSITIVELY IN 4Q16 FY16 4Q16 Sales in Local Currency -2.8% Sales in Local Currency -3.1% Reported Sales Growth -4.9% Reported Sales Growth -2.9% €M €M 61 80 2 24 o/w America 2.850 2.709 o/w America €-62M 781 759 €0M o/w Brazil o/w Brazil €-22M €+7M FY15 FX Imp
Slide 8: Revenues by Vertical
Results FY16 REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported +1% / -0% Spain Int. (LC) 1.229 1.224 Defence & 19% 556 +8% / +8% 599 22% Security T&D Transport & Traffic 24% 674 -6% / -7% 625 23% 1.621 -5% / -8% 1.485 Energy & 426 Industry 15% -3% / -6% 400 15% Financial IT Services 17% 4
Slide 9: Revenues by Region
Results FY16 REVENUES BY REGION Revenues (€M) Local Currency / Reported 2.850 -3% / -5% 2.709 1.223 1.164 -5% / -5% Spain 43% 43% America 27% 771 -8% / -15% 653 24% Europe 17% 493 +7% / +6% 524 19% AMEA 13% 363 +2% / +1% 368 14% FY15 FY16 9 Conference Call – Results FY16 | 9
Slide 10: Brazil Restructuring Progresses Well
Results FY16 BRAZIL RESTRUCTURING PROGRESSES WELL Order Intake Evolution (%) (local currency) FY15 FY16 Variation 17% 11% 5% Order Intake 614 718 17,0% Revenues 928 841 -9,4% -18% 3M 6M 9M 12M Revenues Evolution (%) EBIT* -181 -13 NA EBIT Margin* -19,5% -1,5% +17,9 pp -9% -12% -16% -16% 3M 6M 9M 12M
Slide 11: Headcount Optimization Plan Finalised
Results FY16 HEADCOUNT OPTIMIZATION PLAN FINALISED Headcount reduction (employees) Revenues per employee (€m/employee) 79,00 39.130 -12.4% +5.2% 37.060 76,91 34.294 75,08 2014 2015 2016 2014 2015 2016 Personnel Expenses Evolution (€M) Optimization Plan – Final Data 1.436 1.406 Number of 3,348 Employ
Slide 12: Margins Keep Improving Due to Better Direct Margin and Efficiency Plans
Results FY16 MARGINS KEEP IMPROVING DUE TO BETTER DIRECT MARGIN IN CURRENT PROJECTS AND EFFICIENCY PLANS Recurrent EBIT Margin FY16 Contribution Margin by Divisions T&D IT 8,0% 14,0% 19,1% 14,8% 9,8% 6,0% 5,0% Contribution Margin Overheads Recurrent EBIT Margin FY15 FY16 FY15 FY16 FY16 FY16 Quarterl
Slide 13: Strong FCF Generation in FY16
Results FY16 STRONG FCF GENERATION IN FY16 DUE TO BETTER OPERATING PERFORMANCE AND WORKING CAPITAL Quarterly FCF (€M) FY15: €-50M FY16: €184M 137 140 47 2 -5 -23 -79 -85 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 Accumulated FCF LTM (€M) Underlying FCF FY16 (€M) 76 311 181 184 163 51 184 76 -53 -50 -11
Slide 14: Net Debt Bridge
Results FY16 NET DEBT BRIDGE FCF = €183,6M 6,7 25,7 46,9 27,9 228,3 10,1 699,7 65,9 522,8 Net Debt 2015 Operating Cash Flow Net Working Capital Other Operating Capex Taxes Net interest & Financial Net Debt FY16 Changes Subsidies Investments & Non- CF items & Others 14 Conference Call – Results FY16
Slide 15: Net Working Capital Evolution
Results FY16 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) 30 9 0 5 9 100 -23 77 5 2 -1 10 94 -81 -79 3 -82 FY15 FY16 Accounts Receivable Accounts Payable Inventory (*) FY16 data: Reclassification of billed receivables from short-term to long-term financial assets with a net impact of €85m
Slide 16: Net Debt Evolution
Results FY16 NET DEBT EVOLUTION Net Debt (€M) 837 825 (173) (176) 741 (173) 700 659 666 (187) 659 (162) (187) (187) 523 Net Debt (187) (Factoring)* Net Debt/EBITDA LTM (Times) 6,6 5,9 5,4 4,7 3,2 3,1 3,1 2,3 ND/ EBITDA LTM 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 (*) Non-recourse factoring 16 Confere
Slide 17: Debt Structure
Results FY16 DEBT STRUCTURE 2016 2015 (€M) Total % of total Total % of total L/T Debt 1,136 95% 962 92% S/T Debt 61 5% 79 8% Gross Debt 1,197 100% 1,041 100% Cost of Gross Debt 2.8% 3.9% Cash & Others 674 n.m. 342 n.m. Net Debt 523 n.m. 700 n.m. Cost of Net Debt 3.3% 4.2% Available Credit Facilities
Slide 18: Our Performance Since July 2015 (I)
Our performance since July 2015 OUR PERFORMANCE SINCE JULY 2015 (I) Highlights Lowlights Our operations have improved….. • New commercial strategy with a global customer targeting o Revenue pressure in IT & Transport because of • Prioritized portfolio of core solutions and strict offering o Macro he
Slide 19: Our Performance Since July 2015 (I)
Our performance since July 2015 OUR PERFORMANCE SINCE JULY 2015 (I) 1 2 Balance Sheet (€M) Margin Improvement % Change 2014 2015 2016 14/16 162 Clients 710 699 642 -9,6% 257,5% Billables 961 838 673 -30,0% 45 Inventories 231 70 69 -70,1% EBIT FY15 EBIT FY16 1,6% +4,4pp 6,0% 3 4 LTM FCF Evolution (€M
Slide 20: New Value Levers Going Forward
New value levers going forward (ex-Tecnocom) NEW VALUE LEVERS GOING FORWARD LEVERS FOR EBIT MARGIN MANAGEMENT PRIORITIES – FY17 EXPANSION o Generate profitable growth from our proprietary differential core offer o Focus on our core businesses and solutions o Seize Macro tailwinds, Defense budgets gr
Slide 21: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com