19 slides from Indra Sistemas, S.a. Class A's earnings presentation, Feb 27, 2018
Slide 1: Results 2017
RESULTS 2017 February 27th, 2018
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS LIVE EVENT: The Company will host a conference call for investors and analysts today at 18:30 (CET). Please find below conference call telephone numbers: Spain: +34 914 142 021 France: +33 172 001 510 UK: +44 203 043 2440 US: +1 646 722 4907 Access code: 84640864# Access to t
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
MAIN HEADLINES 1 • 2017 Order Intake up +18%, Revenues +11% and EBIT +21% due to Tecnocom’s consolidation and the acceleration of organic growth in 2H17 2 • Organic revenues (Ex-Tecnocom) +1.8% in 2017 and +8,3% in 4Q17. 3 • EBIT margin of 6.5% in 2017 vs 6.0% in 2016. EBIT margin Ex-Tecnocom of 7.2
Slide 5: We have fulfilled all our guidance metrics for 2017
WE HAVE FULFILLED ALL OUR GUIDANCE METRICS FOR 2017 INDRA Ex-Tecnocom FY17 GUIDANCE RESULTS FY17 Revenues Low Single Digit in local currency +1,8% EBIT Margin > 2016 EBIT Margin (6,0%) 7,2% > 2016 FCF before Working 202M€ Free Cash Flow Capital (118 M€) 5 | 5
Slide 6: Revenues up +11% (+2% in organic terms)
REVENUES UP +11% (+2% IN ORGANIC TERMS) FY17 Sales Growth 4Q17 Sales Growth Reported +11% Reported +18% Local Currency +11% Local Currency +20% Organic Terms (Ex-Tecnocom)(1) +2% Organic Terms (Ex-Tecnocom)(1) +8% €M €M 48 63 255 89 2 15 3.011 895 2.709 759 FY16 FX Impact Tecnocom Underlying FY17* 4
Slide 7: Revenues and order intake by region
REVENUES AND ORDER INTAKE BY REGION Order Intake (€M) Revenues (€M) Local Currency / Reported Local Currency / Reported 3.248 3.011 +18% / +18% +11% / +11% 2.709 2.744 Spain 1.249 38% +19% / +19% 1.387 44% 43% 46% +3% / +3% 1.164 1.218 724 America +23% / +24% 22% 656 21% 584 24% 653 -0% / +0% 22% Eu
Slide 8: EBIT margin evolution
EBIT MARGIN EVOLUTION FY17 EBIT Margin Evolution FY17 EBIT Margin Evolution Ex-Tecnocom Including €49m 7,2% 6,5% of write-offs +0,5pp +1,2pp (1.8% of sales) 6,0% Including €47m of 6,0% write-offs (1.6% of sales) 23,1% 21,1% 196 199 162 162 FY16 FY17* FY16 FY17 4Q EBIT Margin Evolution 4Q EBIT Margin
Slide 9: T&D order intake and revenues
T&D T&D ORDER INTAKE AND REVENUES Revenues FY17 (€M) Local Currency / Reported FY17 Order Intake (€M) 1.224 -3% / -3% 1.183 Local Currency / Reported 599 -1% / -1% 596 49% 50% 1.241 +1% / +1% 1.248 625 -6% / -6% 587 569 +6% / +6% 601 51% 50% 46% 48% FY16 FY17 672 Revenues 4Q17 (€M) -3% / -4% 647 54%
Slide 10: T&D margin and EBIT evolution
T&D T&D MARGIN AND EBIT EVOLUTION FY17 EBIT Margin (%) 4Q17 EBIT Margin (%) 15,4% 13,0% -1,4pp -6,9pp 11,6% 8,6% FY16 FY17 4Q16 4Q17 FY17 EBIT (€M) 4Q17 EBIT (€M) 160 58 137 32 FY16 FY17 4Q16 4Q17 10 | 10
Slide 11: IT order intake and revenues
IT IT ORDER INTAKE AND REVENUES FY17 Revenues (€M) Revenues Ex- Tecnocom up by Local Currency / Reported 6% in both local and reported 1.828 terms FY17 Order Intake (€M) +23% / +23% 1.485 Local Currency / Reported 481 26% 27% 400 +21% / +20% 2.000 32% +27% / +27% 605 33% +33% / +33% 26% 476 1.504 52
Slide 12: IT margin and EBIT evolution
IT IT MARGIN AND EBIT EVOLUTION FY17 EBIT Margin (%) 4Q17 EBIT Margin (%) 3,2% 7,7% +3,1pp +7,9pp 0,1% FY16 FY17* -0,2% 4Q16 4Q17* FY17 EBIT (€M) 4Q17 EBIT (€M) 58 40 2 FY16 FY17* -1 4Q16 4Q17* (*) Displayed data includes Tecnocom, consolidated since April 18th, 2017 12 | 12
Slide 13: Brazil
IT BRAZIL (local currency) FY15* FY16 FY17 Order Intake 614 718 904 Revenues 928 841 777 EBIT(*) -181 -16 -30 EBIT Margin(*) -19,5% -1,9% -3,9% All onerous projects already Order intake increased by closed/finished 47% from 2015 to 2017 (*) FY15 EBIT Data: excluding write-offs and provisions (*) EBI
Slide 14: Strong operating FCF generation due to operating improvements and 4Q17 NWC
STRONG OPERATING FCF GENERATION DUE TO OPERATING IMPROVEMENTS AND 4Q17 NWC Quarterly FCF (€M) FY15: -50€M FY16: 184€M FY17: 186€M* 137 140 142 75 47 2 -5 -5 -23 -26 -79 -85 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Accumulated FCF LTM (€M)* OPERATING FCF BEFORE WC (€M)* 163 181 184
Slide 15: Net Debt Bridge
NET DEBT BRIDGE Net Debt Bridge – Tecnocom’s split(€M) 248 3 186 588 523 Net Debt FY16 FY17* Free Cash Flow Acquisitions payment* Net Debt Acquisitions & Net Debt FY17* Others Net Debt Bridge – Cash Flow (€M) FCF = €186M 252 264 21 53 20 56 40 588 523 Net Debt FY16 Operating Cash Net Working Capital
Slide 16: Net Working Capital Evolution
NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) 5 -1 4 -1 9 +1 11 -0 10 10 +0 77 -6 5 2 -1 71 10 94 -81 71 71 -0 -5 -82 -82 -77 -82 FY16 FY17* 9M17* FY17* Accounts Receivable Accounts Payable Inventory (*) Displayed data includes Tecnocom, consolidated since April 18th, 2017 16 | 16
Slide 17: Net Debt Evolution
NET DEBT EVOLUTION 837 Net Debt (€M) (173) 700 (187) 588 Net Debt 523 (Factoring)(1) (187) (187) Indra Stand-alone 309 Net Debt (2) 3Q15 4Q15 4Q16 4Q17 6,6x Net Debt/EBITDA LTM (Times) 5,4x 2,3x 2,2x ND/ EBITDA LTM Indra Stand-alone 1,2x ND/ EBITDA LTM (2) 3Q15 4Q15 4Q16 4Q17 (1) Non-recourse factor
Slide 18: Debt Structure
DEBT STRUCTURE FY17* FY2016 (€M) Total % of total Total % of total L/T Debt 1.016 79% 1.136 95% S/T Debt 271 21% 61 5% Gross Debt 1.287 100% 1.197 100% Cost of Gross Debt 2,2% 2,8% Cash & Others 699 n.m. 674 n.m. Net Debt 588 n.m. 523 n.m. Cost of Net Debt 3,0% 3,3% Available Credit Facilities Gross
Slide 19: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com