Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (September 2020)
30 slides from Orascom Construction's investor presentation, September 2020
Slide 1: Corporate Presentation September 2020
Burullus Combined Cycle Power Plant – Egypt Ras Ghareb Wind Farm - Egypt Corporate Presentation September 2020
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in MEA and USA ▪ Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shareholding above 5%: Sawiris Family - 51.8%; Sustainable Capital – 10.1%; Cascade Investment and Bill & Melinda Gates Founda
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 an Investments and O&M Portfolio ▪ Roots trace back to 1950s in Egypt where first ▪ Created a top 10 global ce
Slide 4: A Wide Range of Capabilities Across Various Geographies
A Wide Range of Capabilities Across Various Geographies Orascom Construction PLC operates under three brands and owns 50% of BESIX Group Orascom Construction Weitz ▪ Established in 1950 ▪ Established in 1855 ▪ Leading MENA industrial and infrastructure contractor ▪ Backlog: USD 847 million ▪ Backlog
Slide 5: Geographic and Sector Diversification
Geographic and Sector Diversification Rest of World 4.3% of Backlog United States 17.9% of Backlog Egypt 73.8% of Backlog Saudi Arabia 4.0% of Backlog Large geographic presence – each region with an established customer base Note: Backlog geographic segmentation is as of 30 June 2020 and excludes 50
Slide 6: EPC Track Record Across Several Industries and Geographies
EPC Track Record Across Several Industries and Geographies Select Track Record Industrial • Over 12 mtpa of nitrogen fertilizer capacity in Egypt, Algeria and USA including the largest nitrogen fertilizer plant in USA in nearly 30 years • Over 40 mtpa of cement production capacity around the world •
Slide 7: Consolidated Backlog Growth
Consolidated Backlog Growth Current backlog size and quality 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 Evolution of Consolidated Backlog(1) Backlog New Awards Consolidated
Slide 8: Backlog Diversification
Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Other 4.3% Private 16.7% USA 17.9% Commercial 31.7% Saudi Arabia 4.0% Infrastructure Industral 64.4% 3.9% Egypt 73.8% Public 83.3% Backlog by Brand Backlog by Currency Currency Exposure Contrack Watts 3.0% Weitz 15.6% ▪
Slide 9: Evolution of Backlog by Geography
Evolution of Backlog by Geography Consolidated Backlog by Geography (Excluding BESIX) $5.3 bn $4.6 bn $4.3 bn $5.4 bn $5.4 bn - 0.1 - 0.2 0.5 0.2 1.2 1.0 0.1 0.2 - 0.1 0.2 0.3 1.4 0.9 1.0 0.2 0.4 0.4 3.9 4.0 3.1 2.8 2.9 2016 2017 2018 2019 H1 2020 Egypt Other USA Saudi Arabia USA (OCI N.V.) Note: Ba
Slide 10: Investment in BESIX Group
Investment in BESIX Group Highlights ▪ An international Belgian multiservice company with a leading position in construction, property development and concessions founded in 1909 ▪ OC acquired 50% of BESIX in a joint leverage buyout in partnership with BESIX management in 2004 ‒ Held value as an inv
Slide 11: Pro Forma Snapshot Including 50% of BESIX – H1 2020
Pro Forma Snapshot Including 50% of BESIX – H1 2020 ▪ BESIX standalone backlog of EUR 4.5 billion and new awards of EUR 1.1 billion in H1 2020 ▪ BESIX standalone net debt position of EUR 11.8 million as of 30 June 2020 ▪ BESIX book value of USD 359.4 million in Orascom Construction’s noncurrent asse
Slide 12: Construction Materials and Investments
Construction Materials and Investments Portfolio of investments in infrastructure, construction materials, industrial property management and facilities management Company Ownership H1 2020 Revenue Description ▪ Manufactures and supplies fabricated steel products in Egypt and North Africa – total ca
Slide 13: Proven Financing Capabilities
Proven Financing Capabilities ▪ Finance team previously secured and arranged debt for complex industrial and infrastructure projects worldwide across cement, fertilizer, power and infrastructure sectors, having historically raised ~USD 18.5 billion of financing and having strong relationships with E
Slide 14: Financial Section
Financial Section
Slide 15: Financial Highlights
Financial Highlights ▪ Revenue increased 8.2% y-o-y to USD 1.6 billion in H1 2020 and consolidated EBITDA decreased 30.3% to USD 99.3 million in H1 2020 ▪ Net income attributable to shareholders of USD 9.8 million in Q2 2020 and USD 34.8 million in H1 2020 ▪ Net cash position of USD 309.4 million as
Slide 16: Summary Income Statement
Summary Income Statement USD million Revenue by Geography – H1 2020 H1 2020 H1 2019 Change Q2 2020 Q2 2019 Change Revenue 1,618.8 1,495.7 8.2% 791.2 790.1 0.1% MEA 1,024.7 1,116.7 (8.2)% 472.4 579.3 (18.5)% USA 36.7% USA 594.1 379.0 56.8% 318.8 210.8 51.2% EBITDA 99.3 142.4 (30.3)% 35.2 72.1 (51.2)%
Slide 17: Net Cash Position
Net Cash Position Net cash position of USD 309.4 million as of 30 June 2020 Evolution of Debt and Cash (USD Million) Cash Total debt Net debt $507 $463 $434 $403 $375 $375 $379 $303 $261 $265 $153 $96 31 Dec 16 31 Dec 17 31 Dec 18 31 Dec 19 31 Mar 20 30 Jun 20 Debt and Equity Summary Based on IFRS S
Slide 18: Income Statement
Income Statement USD million H1 2020 H1 2019 Q2 2020 Q2 2019 Results Commentary Revenue 1,618.8 1,495.7 791.2 790.1 Revenue: Cost of sales (1,455.8) (1,305.9) (720.3) (691.6) ▪ Consolidated revenue was flat y-o-y at USD 791.2 million in Gross profit 163.0 189.8 70.9 98.5 Q2 2020 and increased 8.2% y
Slide 19: Balance Sheet
Balance Sheet USD million 30 Jun 2020 31 Dec 2019 Results Commentary ASSETS Non-current assets Non-current assets ▪ Total investment in associates includes BESIX at an equity Property, plant and equipment 172.1 181.3 value of USD 359.4 million Goodwill 13.8 13.8 Current assets: Trade and other recei
Slide 20: Balance Sheet
Balance Sheet USD million 30 Jun 2020 31 Dec 2019 Results Commentary EQUITY Equity: Share capital 116.8 116.8 ▪ The movement in reserves relates primarily to currency Share premium 480.2 480.2 translation differences Reserves (315.7) (304.6) Liabilities: Retained earnings 258.8 249.5 ▪ Trade and oth
Slide 21: Cash Flow Statement
Cash Flow Statement USD million 30 Jun 2020 30 Jun 2019 Results Commentary Cash flow used in operating activities: Net profit 34.4 67.2 ▪ Operating cash flow increased 32.3% y-o-y to USD 53.2 Adjustments for: million in H1 2020 Depreciation 23.2 24.8 ▪ In Q2 2020, operating cash flow amounted to USD
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 30 Jun 2020 30 Jun 2019 Results Commentary Cash flow used in investing activities: Investments in PPE (18.2) (17.0) ▪ Cash outflow for investments in PPE of USD 11.0 million in Proceeds from sale of PPE 3.8 4.7 Q2 2020 and USD 18.2 million in H1 2020 Cash flow used in
Slide 23: Appendix
Appendix
Slide 24: Board of Directors
Board of Directors Chairman CEO Jérôme Guiraud Osama Bishai Non-Executive Chairman Executive Board Member Johan Beerlandt Nada Shousha Sami Haddad Wiktor Sliwinski Non-Executive Non-Executive Non-Executive Non-Executive Three committees established: Audit Committee, Remuneration Committee and Nomina
Slide 25: 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 and Operation & Maintenance (O&M) contracts to provide stea
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 PLC is now a leading global company employing c.54,000 people, with over 60 years of experience in MENA mark
Slide 27: 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 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 PLC (the “Company”). The information set out in this document shall not f
Slide 30: Contact Investor Relations
Contact Investor Relations: Hesham El Halaby Director hesham.elhalaby@orascom.com T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com
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