Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (June 2024)
31 slides from Orascom Construction's investor presentation, June 2024
Slide 1: Corporate Presentation June 2024
Egypt International Olympic City Stadium Corporate Presentation June 2024
Slide 2: Highlights
Highlights Engineering, construction and concessions in the Middle East, Africa and USA ▪ Global engineering and construction activities primarily focused on infrastructure, commercial and industrial projects in MEA and USA – Pro forma backlog of USD 9.9 billion including 50% share in BESIX and cons
Slide 3: Recent Developments: Executing Our Long-Term Strategy
Recent Developments: Executing Our Long-Term Strategy • Backlog at a healthy level of USD 8.1 billion as of 31 December 2023 • Focus in Egypt continues to be on foreign funded work such as large-scale transportation and infrastructure projects, with approximately 68% of the Group’s backlog in Egypt
Slide 4: Wide Range of EPC Capabilities Across Various Geographies
Wide Range of EPC 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 ▪ Backlog: USD 5.6 billion ▪ Backlog: USD 1.6 billion ▪ Core markets: Middle East and Afri
Slide 5: Growing Concessions Portfolio
Growing Concessions Portfolio Co-owner and co-developer of projects in water, renewable energy, logistics and hydrogen sectors Creates construction opportunities followed by long-term recurring income New Cairo Wastewater Dammam Independent Sewage Ras Ghareb Wind Energy Red Sea Wind Energy Treatment
Slide 6: Equipment Services and Building Materials
Equipment Services and Building Materials Diverse group of subsidiaries across building materials and equipment services Orascom Construction divested two of its construction chemicals subsidiaries in Q2 2023 for EGP 2.2 billion Company Ownership Q1 2024 Revenue Description ▪ A leading equipment imp
Slide 7: O&M, Facility Management and Industrial Parks
O&M, Facility Management and Industrial Parks ▪ Secured multi-year O&M contracts for projects on which the Group is also the contractor ▪ Current O&M contracts across water treatment, wastewater treatment and transportation: – High-speed rail: 15-year O&M for Egypt’s first high-speed rail system Ope
Slide 8: Leading EPC Track Record Across Several Industries and Geographies
Leading EPC Track Record Across Several Industries and Geographies Select Track Record Transportation • Egypt’s first high-speed rail (2,000 km – 6th largest in the world) and the world’s longest monorail project • Key Cairo Metro player since the late 1980s and completed over 1,000km of rail projec
Slide 9: Consolidated Backlog
Consolidated Backlog Evolution of Consolidated Backlog (USD Billion) (1) Consolidated ▪ Consolidated backlog increased 33.1% y-o-y Backlog New Awards to USD 7.3 billion in Q1 2024 $8.1 ▪ Consolidated new awards decreased 29.0% $7.3 y-o-y to USD 609.5 million in Q1 2024 $6.1 $5.5 $5.8 $5.5 ▪ Excludin
Slide 10: Consolidated Backlog Breakdown – 31 March 2024
Consolidated Backlog Breakdown – 31 March 2024 Backlog by Geography Backlog by Sector Other Commercial 3.5% 14.8% USA 22.1% Industrial 17.3% UAE 6.2% Egypt Infrastructure 68.2% 67.9% Backlog by Client Backlog by Currency(1) EGP 15.8% Private 26.6% Public 73.4% FCY & FCY- priced 84.2% (1) 77% of back
Slide 11: Evolution of Backlog by Geography
Evolution of Backlog by Geography Consolidated Backlog by Geography (Excluding BESIX) $5.4 bn $6.1 bn $5.5 bn $8.1 bn $7.3 bn 1.6 1.6 1.3 0.3 0.3 0.5 0.5 0.9 1.3 0.2 0.2 0.2 0.2 - 0.2 0.1 5.0 5.0 4.2 4.3 3.8 2020 2021 2022 2023 Q1 2024 Egypt UAE Saudi Arabia Other MEA USA Note: Backlog/new awards ch
Slide 12: 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 13: Pro Forma Snapshot Including 50% of BESIX – Q1 2024
Pro Forma Snapshot Including 50% of BESIX – Q1 2024 ▪ BESIX’s standalone backlog decreased 15.2% y-o-y to EUR 4.8 billion as of 31 March 2024 while new awards stood at EUR 530.6 million in Q1 2024 ▪ Standalone net debt position of EUR 249.8 million as of 31 March 2024 (driven by the real estate deve
Slide 14: 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 30 billion of financing and having strong relationships with Eur
Slide 15: Financial Section – Q1 2024 Results
Financial Section – Q1 2024 Results
Slide 16: Summary Income Statement
Summary Income Statement USD million Revenue by Geography – Q1 2024 Q1 2024 Q1 2023 Change Other MEA 4.3% Revenue 766.3 804.9 (4.8)% MEA 359.8 448.0 (19.7)% Egypt 42.7% USA 406.5 356.9 13.9% Adjusted EBITDA 37.8 35.5 6.5% USA 53.0% MEA 25.8 28.9 (10.7)% USA 12.0 6.6 81.9% Adjusted EBITDA margin 4.9%
Slide 17: Net Cash Position
Net Cash Position Net cash position of USD 477.6 million as of 31 March 2024 Evolution of Debt and Cash (USD Million) Cash Total debt Net debt $697 $691 $538 $506 $474 $250 $212 $214 $115 $64 31 Dec 20 31 Dec 21 31 Dec 22 31 Dec 23 31 Mar 24 Debt and Equity Summary Based on IFRS Statements USD milli
Slide 18: Portfolio of Equipment Services, Building Materials, Facility Mgmt. and Concessions
Portfolio of Equipment Services, Building Materials, Facility Mgmt. and Concessions These subsidiaries and investments contributed 36% to the Group’s total net income in Q1 2024 Company(1) Ownership Q1 2024 Revenue Description ▪ A leading equipment importation, distribution and maintenance player in
Slide 19: Income Statement
Income Statement USD million Q1 2024 Q1 2023 Results Commentary Revenue 766.3 804.9 Cost of sales (698.8) (735.5) Revenue: Gross profit 67.5 69.4 ▪ Consolidated revenue decreased 4.8% y-o-y to USD 766.3 Margin 8.8% 8.6% million in Q1 2024 Other income 1.7 (0.5) ▪ MEA operations comprised 47% of tota
Slide 20: Balance Sheet
Balance Sheet USD million 31 Mar 2024 31 Dec 2023 Results Commentary ASSETS Non-current assets Non-current assets Property, plant and equipment 97.9 126.4 ▪ Total investment in associates includes BESIX at an equity 27.7 27.7 value of USD 449.7 million (BESIX represents USD 414.5 Goodwill million) T
Slide 21: Balance Sheet
Balance Sheet USD million 31-Mar-24 31-Dec-23 Results Commentary EQUITY Equity: Share capital 110.2 110.2 ▪ The movement in reserves relates primarily to currency Share premium 467.3 467.3 translation differences Reserves (466.3) (421.7) Liabilities: Retained earnings 558.8 533.3 ▪ Trade and other p
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 31 Mar 2024 31 Mar 2023 Results Commentary Cash flow used in operating activities: Net profit 49.8 40.1 ▪ Operating cash flow of USD 302.1 million in Q1 2024 Adjustments for: compared to cash outflow of 65.9 million in Q1 2023 Depreciation and amortization 7.4 8.4 Int
Slide 23: Cash Flow Statement
Cash Flow Statement USD million 31 Mar 2024 31 Mar 2023 Results Commentary Cash flow used in investing activities: Acquisition of PPE (10.6) (6.6) ▪ Cash flow used in investing activities of USD 10.0 million in Proceeds from sale of PPE 0.6 - Q1 2024 compared to USD 6.6 million in Q1 2023 Cash flow
Slide 24: Appendix
Appendix
Slide 25: Strong Track Record of Geographic and Sector Expansion
Strong Track Record of Geographic and Sector 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 cemen
Slide 26: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value ▪ Shareholder return: driven by strong longstanding leadership along with investment vision of principal shareholders ▪ Strategy to focus on infrastructure investments/concessions, Operation & Maintenance (O&M) contracts and complementary servi
Slide 27: 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.60,000 people, with over 70 years of experience in MENA mark
Slide 28: 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 businesses Strengthen EPC Market and Geographic Position Value Accretive Investment and O&M
Slide 29: Board of Directors
Board of Directors Chairman CEO Jérôme Guiraud Osama Bishai Independent Non-Executive Executive Board Member Chairman Hassan Badrawi Johan Beerlandt Sami Haddad Bjorn Schuurmans Nada Shousha Renad Younes Non-Executive Independent Non-Executive Independent Non-Executive Non-Executive Independent Non-
Slide 30: 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 31: 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
Orascom Construction — Investor Presentation (June 2024) on 6ix