Orascom Construction Plc · EGX:ORAS

Orascom Construction — Q1 2016 Earnings Presentation

18 slides from Orascom Construction's earnings presentation, May 26, 2016

  1. Slide 1: Q1 2016 Results Presentation

    Q1 2016 Results Presentation 26 May 2016

  2. Slide 2: Table of Contents

    Table of Contents Section Page Summary Financials 3 Net Cash Position 4 Backlog Evolution and Segmentation 5 BESIX Group 8 Construction Materials and Industrial Property Portfolio 9 Legal Update 10 Appendix – Financial Statements 11 2

  3. Slide 3: Summary Financials

    Summary Financials  Return to profitability as the Group reported blended EBITDA margin of 5.0%, EBITDA of USD 48.8 million and net income of USD 23.0 million in Q1 2106 ‒ Led primarily by the Group’s performance in the MENA region  Backlog maintained at a healthy level of USD 6.1 billion as the G

  4. Slide 4: Net Cash Position as of 31 March 2016

    Net Cash Position as of 31 March 2016 Net cash position of USD 87.0 million as of 31 March 2016 Evolution of Net Debt Pre-Demerger Post-Demerger $796 $807 $589 $564 $575 $524 $466 $476 $467 $448 $428 $439 $420 $397 $369 $371 $371 $380 31 Dec 11 31 Dec 12 31 Dec 13 1 Jan 15 31 Mar 15 30 June 15 30 Se

  5. Slide 5: Healthy Backlog Level Secures Future Profitability

    Healthy Backlog Level Secures Future Profitability Focus on pursuing quality projects where the Group has a competitive edge and is confident in the source of funding Growing US backlog to complement MENA operations and provide incremental value Consolidated Backlog Grew 8.7% in Q1 2016 $6.66 $6.11

  6. Slide 6: Strategic Backlog Diversification

    Strategic Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Rest of World 3.8% Commercial OCI N.V. 17.3% 14.5% USA (OCI N.V.) 14.5% Private Egypt 18.9% 47.2% Industrial USA 20.7% 21.3% Infrastructure 62.0% Public 66.7% Algeria 3.4% Saudi Arabia 9.9% Backlog by Brand Ba

  7. Slide 7: Backlog Evolution

    Backlog Evolution Backlog by Geography Backlog by Sector $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $6.1bn $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $6.1bn 0.2 0.2 1.1 0.3 1.1 2.5 0.6 2.2 1.4 0.9 0.7 1.3 2.4 0.1 1.9 0.3 0.7 0.2 0.6 0.6 1.4 0.7 1.7 0.5 1.4 0.2 0.3 1.1 0.2 0.6 0.1 0.1 1.2 4.2 0.6 3.8 0.8 3.2 2.9 3.0

  8. Slide 8: BESIX: Standalone Backlog Grew 18% to EUR 3.5 Billion

    BESIX: Standalone Backlog Grew 18% to EUR 3.5 Billion Increase in BESIX’s standalone backlog to EUR 3.5 billion expected to improve future profitability BESIX book value represents 56% of Orascom’s total equity value of USD 531.2 million BESIX at a net cash position of EUR 2.6 million as of 31 March

  9. Slide 9: Complementary Construction Materials and Property Management Portfolio

    Complementary Construction Materials and Property Management Portfolio Subsidiaries currently benefitting from increased construction and industrial activity Operational synergies with Orascom and BESIX  Ownership: 100%  Ownership: 100%  Ownership: 100%  Ownership: 60.5%  Q1 2016 revenue: USD 1

  10. Slide 10: Legal Update

    Legal Update Golden Pyramids Plaza / City Stars Project Arbitration SIDRA Medical Research Center arbitration  The Group and its partner, Consolidated Contractors International Co.  The Group is part of an ongoing arbitration case against the Qatar SAL, were awarded a positive outcome against Gold

  11. Slide 11: Appendix Financial Statements

    Appendix Financial Statements

  12. Slide 12: Income Statement

    Income Statement USD million Q1 2016 Q1 2015 Q1 2016 Results Commentary Revenue 972.9 857.8 Revenue: Cost of sales (891.5) (801.7)  Revenue up 13% y-o-y led by the MENA region Gross profit 81.4 56.1 Margin 8.4% 6.5%  53% of Q1 2016 revenue from MENA and 47% from USA Other income 1.9 2.2 Net financ

  13. Slide 13: Balance Sheet

    Balance Sheet USD million 31 Mar 2016 31 Dec 2015 Q1 2016 Results Commentary ASSETS Non-current assets Non-current assets  PPE of USD 262.0 million, including USD 28.0 million in Property, plant and equipment 262.0 280.2 new additions purchased during Q1 2016 Goodwill 13.8 13.8  Goodwill relates t

  14. Slide 14: Balance Sheet

    Balance Sheet USD million 31 Mar 2016 31 Dec 2015 Q1 2016 Results Commentary EQUITY Liabilities: Share capital 118.0 118.0  Total debt down 14% due to debt settlement Share premium 772.8 772.8 Reserves (124.4) (81.2)  Total liabilities rose compared to opening balance due to increased operational

  15. Slide 15: Cash Flow Statement

    Cash Flow Statement USD million 31 Mar 2016 31 Mar 2015 Q1 2016 Results Commentary Net profit 25.9 9.5 Cash flow from operating activities:  The Group generated operating cash flow of USD 12.1 Adjustments for: million in Q1 2016 compared to USD (2.8) million in Q1 2015 Depreciation 13.2 14.3  Cash

  16. Slide 16: Cash Flow Statement

    Cash Flow Statement USD million 31 Mar 2016 31 Mar 2015 Q1 2016 Results Commentary Cash flow used investing activities: Investment in PPE (28.0) (22.8)  Cash outflow mainly driven by customary capex Proceeds from sale of PPE 5.2 2.8 requirements in-line with the Group’s expectations Cash flow from

  17. Slide 17: 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 Limited (the “Company”). The information set out in this document shall n

  18. Slide 18: www.orascom.com

    Contact Investor Relations: Hesham El Halaby hesham.elhalaby@orascom.com T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com

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