Grupo Ezentis Sa · BME:EZE
Grupo Ezentis Sa — Q3 2020 Earnings Presentation
37 slides from Grupo Ezentis Sa's earnings presentation, November 2020
Slide 1: Results Presentation Third Quarter 2020
RESULTS PRESENTATION THIRD QUARTER 2020 November 2020
Slide 2: Index
INDEX Keys of the period 01 Results 12 Perspectives and Trends 19 Conclusions 28 Annexes 30
Slide 3: Keys of the Period
Mm KEYS OF THE PERIOD
Slide 4: Keys of the Period
KEYS OF THE PERIOD Working for the Future Increased activity. Progressive improvement in revenues 281M€ in 9M20 +7% Q3/Q2 12,4% Q3 (8,9% Q2) Reduction of 3.908 Transformation Plan: efficiency and productivity EBITDA margin people (1) Solid commercial portfolio (backlog) 647 M€ 1.6 x s/revenue (last
Slide 5: Main Figures 9M 2020
MAIN FIGURES 9M 2020 REVENUES (1) 281,3 M€ PORTFOLIO 647,5 M€ Working for the Future EBITDA (1) 30,2 M€ EBITDA MARGIN 10,7% CASH 18,7M€ NET FINANCIAL 3,6x POSITION DEBT CURRENCY EFFECT NET RESULT -23,9M€ IN REVENUES -36M€ NON-RECURRING IN EBITDA -6M€ RESULT -14,8M€ (1) Considers Argentina as a conti
Slide 6: Evolution of the Commercial Portfolio
EVOLUTION OF THE COMMERCIAL PORTFOLIO PORTFOLIO DEC/19 TO SEP/20 (M€) 89,7 Working for the Future 934,5 -95,5 647,5 -281,3 Initial portfolio Contracts Currency Production Final Adjustments Portfolio Accumulated contracts as of September: 90M€ Additional contracts in the month of October: 134M€
Slide 7: Diversified Geographical Footprint
DIVERSIFIED GEOGRAPHICAL FOOTPRINT MEXICO GERMANY Working for the Future COLOMBIA OBJECTIVE 1T2021 PERU BRAZIL CHILE ARGENTINA SPAIN AND PORTUGAL ARGENTINA Active for Sale
Slide 8: Revenue by Geography and Sector: Greater Presence in Europe
REVENUE BY GEOGRAPHY AND SECTOR: GREATER PRESENCE IN EUROPE Revenue Generation Revenue Generation by by Geographical Area Sector 3Q20 Working for the Future (1) (1) Percentage of Pacific countries: Chile: 15,6% 3Q20/20,2% 3Q19; Peru: 5,3% 3Q20/8,5% 3Q19; Argentina 3,0% 3Q20/3,2% 3Q19; Mexico: 1,4% 3
Slide 9: Growth of Our Activity
GROWTH OF OUR ACTIVITY Working for the Future EUROPE BRAZIL PACIFIC Variation in Revenues Q3/Q2: +27,5% +2,9% -6,9% (in constant currency) Commercial portfolio: weight on weight on weight on (as of September) 269M€ total portfolio (42%) 160M€ total portfolio (25%) 218M€ total portfolio (33%) Reducti
Slide 10: Keys of the Business Model
KEYS OF THE BUSINESS MODEL DENSITY CUSTOMERS • Large contract renewal rate in 2020 of >90% (Confidence and Quality indicator. Medium-term business guarantee). Highest quality of customers • Contract portfolio 1,6 times over revenues last 12 months. Contracts at 30 Sep 90 M€ (1) DENSITY Telecommunica
Slide 11: Keys of the Business Model: Operating Synergies and Digitalisation
KEYS OF THE BUSINESS MODEL OPERATING SYNERGIES AND DIGITALISATION Efficiency in management of resources Working for the Future 12,4% Q3 (8,9% Q2) • Transformation plan: Efficiency and productivity EBITDA margin OPERATING SYNERGIES • Reduction of employees 3.908 people (1) (1) Net reduction in the wo
Slide 12: Evolution of Latin American Currencies
EVOLUTION OF LATIN AMERICAN CURRENCIES LTM Exchange Rate Developments - Base 100 Working for the Future Depreciation of Latin American currencies COVID 19 against the euro during the period Impact on revenue of -36M€ and on Ebitda of CLP -13,6% -6M€ PEN -11,8% COP -16,8% Greater effect on income in
Slide 13: Resilient Business Model
RESILIENT BUSINESS MODEL INCREASED PRESENCE IN THE VALUE CHAIN Growing Market Concentrating Market Operator outsourcing Working for the Future • Customer focus on their "Core Business" implies further outsourcing of the Design, Logistics design, logistics and deployment phases and Deployment • Logis
Slide 14: Results
RE SULTS
Slide 15: Resilient Business Model
RESILIENT BUSINESS MODEL Revenue Evolution M€ Portfolio Evolution M€ TACC 8% Working for the Future (1) (1) 2014 2015 2016 2017 2018 2019 Q320 2014 2015 2016 2017 2018 2019 Q320 Last 12 months Portfolio / (1) Considers Argentina as a continuous activity for comparative purposes Revenue 1,6x 1,8x 2,6
Slide 16: Evolution of Revenues and EBITDA
EVOLUTION OF REVENUES AND EBITDA Revenues M€ Constant exchange rate -9,5%. Less activity in installation and maintenance in households, limitation -19,9% of telephone portability and restrictions on "cutting and replacement" power due to the health emergency Working for the Future The reduction in i
Slide 17: Net Financial Debt: Maturity of Principal in 2025
NET FINANCIAL DEBT: MATURITY OF PRINCIPAL IN 2025 Q320 2019 FY 64% debt maturing since 2023 Net Financial Debt (NFD) 165,5 147,4 Working for the Future Financial Debt 184,3 170,9 Average cost of debt 5,4% vs 5,9% in 2019 Cash and cash equivalents 18,7 23,5 Additional financing of 18M€ guaranteed by
Slide 18: Profit and Loss Account 9M 2020
PROFIT AND LOSS ACCOUNT 9M 2020 M€ 9M20 (1) 9M19 (2) Income 281,3 351,0 Working for the Future EBITDA 30,2 41,3 EBITDA margin 10,7% 11,8% EBIT (1,8) 16,2 Net financial result (11,0) (12,8) Taxes and Minorities 3,7 2,6 Net Result before Non-Recurrent (9,2) 6,0 Non-recurring results (14,8) (3,0) Net r
Slide 19: Profit and Loss Account Q3 2020
PROFIT AND LOSS ACCOUNT Q3 2020 QUARTERLY DEVELOPMENT (1) M€ Q120 Q220 Q320 Evolution Progressive recovery of Revenues 101,9 86,5 92,8 activity Working for the Future EBITDA 10,9 7,7 11,5 Significant increase in margins: Efficiency and EBITDA margin 10,7% 8,9% 12,4% productivity EBIT 2,6 (3,3) (1,1)
Slide 20: Cash Flow Generation
CASH FLOW GENERATION CASH FLOW LAST 12 MONTHS / 9M20 M€ Cash flow Cash flow FLOW OF OPERATING ACTIVITIES Last 12 months 9M20 Deterioration of the operating cash flow generated by: EBITDA 46,7 30,2 • COVID-19 effect. Slow business recovery in LATAM Changes in operating working capital and other movem
Slide 21: Perspectives and Trends
PERSPECTIVES AND TRENDS
Slide 22: Visibility in 2020
VISIBILITY IN 2020 PRE-COVID19 COVID19 IMPACT FORECAST Working for the Future Revenue (€M) EBITDA Margin(€M) PROGRESSIVE RECOVERY OF THE MARGIN IN H2 20 First semester: Moderate impact of the emergency situation in Q120 accentuated in Q2 20. Greater effect in April and May (Household installation an
Slide 23: Perspectives to 2022-2023
PERSPECTIVES TO 2022-2023 Working for the Future FINANCIAL (1) DIVE R SIFICATIO N GR OWTH EBITDA MARGIN Th e st rate gic GEOGRAPHY po sit ion in g o f E z e n t is 65% - 70% 8% - 9% al l o ws to t ake REVENUE advant age o f t h e EUROPE DEBT RATIO o ppo rtun ities t h at are SECTOR < 2x EBITDA appe
Slide 24: Ezentis: Levers of Growth in Markets
EZENTIS: LEVERS OF GROWTH IN MARKETS Working for the Future GERMANY National infrastructure development with gigabit networks to cover 100% of households by 2025 FTTH potential market: overall plan for optical fibre deployment to connect an additional 24 million Context households in the period (5 m
Slide 25: Market Trends and Keys: Telecommunications
MARKET TRENDS AND KEYS Working for the Future TELECOMMUNICATIONS TRENDS KEYS TO THE MARKET GROWTH LEVERS Modernization of networks. • Fiber optic deployment and FTTH Deployment of new infrastructure O&M. <15% FTTH penetration • Fiber optic deployment, operation and maintenance. and 4G and 5G mobile
Slide 26: Market Trends and Keys: Energy
MARKET TRENDS AND KEYS Working for the Future ENERGY TRENDS KEYS TO THE MARKET GROWTH LEVERS Need to decarbonize to avoid the • Objective: 59% electrification. • Implementation of investments in energy networks: assembly, increase of the planet's operation and maintenance of installations. temperatu
Slide 27: Sustainability
SUSTAINABILITY
Slide 28: Focused on Sustainability
FOCUSED ON SUSTAINABILITY PLAN 2020 GOVERNANCE ENVIRONMENT INTEREST GROUPS Working for the Future Publication of a new Publication of a new Climate Reinforcing the relationship with Sustainability Policy Change Policy customers from a sustainable point of view Launch of the Sustainability Integratio
Slide 29: Committed to Sustainability
COMMITTED TO SUSTAINABILITY SUSTAINABILITY PLAN TO 2022 Working for the Future Inclusion in reference sustainability Approval of suppliers with sustainability indexes (FTSE4GOOD, VIGEO...) criteria Obtaining a B-score in the PDC Safety Audits to contractors and questionnaire subcontractors Developme
Slide 30: Conclusions
CO N CLUSIONS
Slide 31: Conclusions
CONCLUSIONS COVID19 impact maintaining operational profitability and positive recurrent cash flow generation Progressive improvement in activity in Q3 20: +7% revenue vs. Q2 20 Working for the Future 19 M€ cash position in Q3 20 Portfolio with visibility at 1,6 years Increased competitiveness throug
Slide 32: Annexes
ANNEXES
Slide 33: Share Performance vs. Indices During the COVID Crisis Period
SHARE PERFORMANCE VS. INDICES DURING THE COVID 19 CRISIS PERIOD Working for the Future IBEX SMALL +43,2% EZENTIS +17,6% IBEX 35 +16,3% IBEX MEDIUM +11,7%
Slide 34: Profit and Loss Account 9M 2020
PROFIT AND LOSS ACCOUNT 9M 2020 M€ 9M20(1) 9M19 Revenues 273,6 351,0 Working for the Future EBITDA 29,1 41,3 EBITDA margin 10,6% 11,8% Depreciation and provisions (32,0) (25,1) EBIT (2,8) 16,2 Financial results (11,0) (13,1) Exchange rate differences 0,0 0,3 Non-recurring results (14,8) (3,0) Minori
Slide 35: Consolidated Balance Sheet 9M20
CONSOLIDATED BALANCE SHEET 9M20 Working for the Future Thousands € 9M20 2019 9M20 2019 Equity (27.945) 14.312 Non-current assets 181.936 195.377 Non-current liabilities 175.784 160.309 Tangible and intangible fixed assets 116.303 131.270 Financial debt 131.491 120.093 Long-term financial investments
Slide 36: Legal Notice
LEGAL NOTICE This document has been prepared by EZENTIS, only for use during the PRESENTATION OF THE THIRD QUARTER OF 2020 and for institutional and professional investors in the same sector. Consequently, it may not be disclosed or made public or used by any other natural or legal person for a purp
Slide 37: Investor Relations Contact
investor.relations@ezentis.com accionistas@ezentis.com www.ezentis.com Linkedin Ezentis App Ezentis Investor App Ezentis Investor Relations for iOS Relations for Android