Indra Sistemas, S.a. Class A · BME:IDR
Indra Sistemas, S.a. Class A — 9M 2016 Earnings Presentation
18 slides from Indra Sistemas, S.a. Class A's earnings presentation, Nov 14, 2016
Slide 1: Results 9M16
RESULTS 9M16 November 14th, 2016
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: +34 917 900 860 UK: +44 (0) 203 043 2434 USA: +1 866 305 9104 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 9M16 MAIN HEADLINES 1 • 9M16 Order Intake up +6% in local currency, keeping the pace of growth achieved in 1H16 2 • 9M16 Revenue growth in D&S (+10% in local currency) & AMEA (+14%) 3 • Less negative impact of the FX (€-6M in 3Q16) 3 • 9M16 EBITDA reached €151m (7.7% margin) vs €63m in 9M15
Slide 5: 9M16 Down -3% in Local Currency
Results 9M16 9M16 DOWN -3% IN LOCAL CURRENCY 9M16 3Q16 Sales in Local Currency -3% Sales in Local Currency -5% Reported Sales Growth -6% Reported Sales Growth -6% €M €M 63 55 6 35 2.069 o/w America 1.951 660 o/w America €-62M 619 €-30M o/w Brazil o/w Brazil €-29M €0M 9M15 FX Impact Underlying growth
Slide 6: Order Intake Up +6% in 9M16 in Local Currency
Results 9M16 ORDER INTAKE UP +6% IN 9M16 IN LOCAL CURRENCY Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported +6% / +3% +6% / +3% 2.019 2.080 2.080 2.019 +34% / +34% 17% 338 454 22% Defence & Security 48% T&D Spain 48% 1.001 Transport & 971
Slide 7: Revenues by Region
Results 9M16 REVENUES BY REGION Revenues (€M) Local Currency / Reported -3% / -6% 2.069 3Q16 Revenues 1.951 -2% / -2% • 3Q16 Revenues continue improving (-1% vs -2% in Spain 43% 884 44% 2Q16 and -4% in 1Q16) 863 • Strong performance of Defence & Security (+61%), Financial Services (+1%) and Energy &
Slide 8: Revenues by Vertical
Results 9M16 REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported +2% / +1% 839 Spain Int. (LC) 847 Defence & 365 401 18% +10% / +10% 21% Security T&D Transport & Traffic 474 -4% / -6% 446 23% 23% -6% / -10% 1.231 Energy & 1.104 16% 323 -5% / -9% Industry 293 15% Financial IT 18% 375 -2% / -
Slide 9: One Quarter Left to Complete the Personnel Cost Optimization Plan
Results 9M16 ONE QUARTER LEFT TO COMPLETE THE PERSONNEL COST OPTIMIZATION PLAN % Of completion SPAIN – up to 1,750 1,542* - Sep 15-Sep 16: ~ 90% Number of Employees LATAM – 1,700 1,721* - 1,721 as of 31/12/2015 Provision of €160M accounted in 2015 2016 2017 2018 3Q15 as non-recurrent cost for Sp
Slide 10: Underlying Headcount Decreasing
Results 9M16 UNDERLYING HEADCOUNT DECREASING Total 38.995 Headcount 37.931 37.060 37.980 35.972 35.026 34.389* 21.893 21.496 Spain 20.251 19.748 19.474 18.967 15.831 13.831 13.558 America 13.187 13.029 12.331 12.240* 1.672 1.640 1.582 1.550 1.567 1.582 Europe AMEA 1.599 1.608 1.669 1.654 1.645 1.600
Slide 11: Brazil Continuing Its Turn Around
Results 9M16 BRAZIL CONTINUING ITS TURN AROUND (local currency) 9M15 9M16 Variation Order Intake 504M 530M +5% Revenues 715M 626M -12% EBIT* -151M -15M NA EBIT Margin* -21% -2% +19 pp • 4 out of the 7 onerous projects already closed/finished • Remaining onerous projects on track • Order intake conti
Slide 12: Margin Improvement Due to Efficiency Plans and Better Direct Margin
Results 9M16 MARGIN IMPROVEMENT DUE TO EFFICIENCY PLANS AND BETTER DIRECT MARGIN IN CURRENT PROJECTS Recurrent EBIT Margin 9M16 Contribution Margin by Divisions T&D IT 8,3% 18,3% 13,6% 13,6% 10,0% 5,3% 3,8% Contribution Margin Overheads Recurrent EBIT Margin 9M15 9M16 9M15 9M16 9M16 9M16 Quarterly R
Slide 13: Strong FCF Generation
Results 9M16 STRONG FCF GENERATION Quarterly FCF (€M) 137 52 47 2 -5 -23 -79 -85 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 Accumulated FCF LTM (€M) Underlying FCF 9M16 (€M) 41 123 181 163 38 76 44 -53 -50 -114 -136 FCF 9M16 Headcount reduction Cash cost of onerous Underlying FCF 9M16 1Q15 1H15 9M15 FY
Slide 14: Net Debt Evolution
Results 9M16 NET DEBT EVOLUTION Net Debt (€M) 837 825 (173) (176) 741 700 (173) (187) 659 666 659 Net Debt (162) (187) (187) (Factoring)* Net Debt/EBITDA LTM (Times) 6,6 5,9 5,4 4,7 3,2 3,1 3,1 ND/ EBITDA LTM 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 (*) Non-recourse factoring 14 Conference Call – Results
Slide 15: Net Debt Bridge
Results 9M16 NET DEBT BRIDGE FCF = €43,6M 15,0 10,3 20,6 20,6 32,1 115,4 16,5 699,7 666,4 Net Debt 2015 Operating Cash Net Working Other Operating Capex Taxes Net interest Financial Net Debt 9M16 Flow Capital Changes & Subsidies Investments & Non-CF items & Others 15 Conference Call – Results 9M16 |
Slide 16: Debt Structure
Results 9M16 DEBT STRUCTURE 9M16 2015 (€M) Total % of total Total % of total L/T Debt 918 88% 962 92% S/T Debt 127 12% 79 8% Gross Debt 1,045 100% 1,041 100% Cash & Others 379 n.m. 342 n.m. Net Debt 666 n.m. 700 n.m. Cost of Net Debt 3.2% 4.2% Gross Debt Maturity Profile Available Credit Facilities
Slide 17: Net Working Capital Evolution
Results 9M16 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) 30 24 20 24 26 9 20 24 1 10 0 10 10 0 10 10 100 89 96 89 7 96 95 -11 5 2 -1 10 94 -81 -1 -79 0 -79 -4 -82 -82 +3 -79 FY15 1Q16 1Q16 1H16 9M16 Accounts Receivable Accounts Payable Inventory Note: The headings “Accounts Receivable" a
Slide 18: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com