Koninklijke BAM Groep NV · EURONEXT:BAMNB
Koninklijke BAM Groep NV — Royal BAM Group — H1 2014 Earnings Presentation
27 slides from Koninklijke BAM Groep NV's earnings presentation, Aug 21, 2014
Slide 1: Royal BAM Group nv Half-year results 2014
Royal BAM Group nv Half-year results 2014 Analysts’ meeting Amsterdam, 21 August 2014
Slide 2: BAM reports break even result before tax for the first half of 2014
BAM reports break even result before tax for the first half of 2014 • Construction and M&E services: lower revenue and results related to Dutch activities • Civil engineering: result includes losses of €68 million on two projects as announced on 7 July • Property: result driven by success of commerc
Slide 3: Result before tax and impairments sectors
Result before tax and impairments sectors 40 € 11.3 million € 3.9 million 30 20 10 x € million 0 H1 2013 H1 2014 -10 -20 -30 Operational sectors Investment sectors Royal BAM Group | Half-year results 2014 3
Slide 4: Underlying result before tax operational sectors
Underlying result before tax operational sectors 150 100 50 Underlying result x € million 0 Major project results H1 2013 H1 2014 Major project losses -50 Restructuring costs -100 -150 Royal BAM Group | Half-year results 2014 4
Slide 5: Operational sectors
Operational sectors • Revenue down in NL and INT, up in other geographies • Loss operational sectors 1H14 €26m (1H13: profit of €8.8m) with two major project losses (€68m) mostly offset by strong results on some other projects • Netherlands working through lower quality order book and under recovery
Slide 6: Investment sectors
Investment sectors Property development Public private partnerships • Result €14.7m compared to a loss of • Strong operational results €9.7m in 1H13 • 5 projects transferred to PGGM JV in • Successful divestment programme (gross 1H14 proceeds €112m) drives results 1H14, • 2 positive bid outcomes in
Slide 7: Revenue and results per sector
Revenue and results per sector 1H14 1H13 Revenue Result1) Revenue Result1) Construction and M&E Services 1,355 -6.8 1,418 -1.1 Civil engineering 1,862 -19.2 1,790 9.9 Property 245 14.7 123 -9.7 PPP 130 13.7 131 12.3 Eliminations and other -210 1.5 -230 -0.1 Total sectors 3,382 3.9 3,232 11.3 (in € m
Slide 8: Key figures: income statement
Key figures: income statement 1H14 margin 1H13 margin Total result sectors 3.9 0.1% 11.3 0.3% Group overhead -1.7 2.1 Group interest -2.1 -2.3 Result before tax and impairments 0.1 0.0% 11.1 0.3% Impairments -1.0 -1.5 Share impairments in associates/jv -0.7 -0.9 Income tax -4.6 7.2 Non-controlling i
Slide 9: Cash flow analysis
Cash flow analysis 1H14 1H13 FY13 Net cash result -23 -13 46 • Net cash result Investments TFA -25 -39 -65 negative due to low result and usage of ∆ Trade working capital -296 -193 -50 restructuring provisions Net Investment Property 19 -1 -26 • Movement working Net investment PPP 37 7 16 capital im
Slide 10: Key figures: balance sheet
Key figures: balance sheet 1H14 FY13 1H13 • Capital base increased due to a lower balance Balance sheet total 5,047 5,316 5,138 sheet total caused by Shareholders’ equity 930 929 779 property and PPP Capital base 1,054 1,053 903 divestments Capital ratio 20.9% 19.8% 17.6% • Recourse net debt increas
Slide 11: BAM within all covenants as at June 2014
BAM within all covenants as at 30 June 2014 • Since adoption of IFRS 11 in 2012, BAM’s figures exclude amounts for joint ventures. These are included in covenant calculations • All covenants are based on recourse amounts • Auditor checks quarterly covenants calculations • EBITDA is normalised for sp
Slide 12: Bank covenants: ratio's
Bank covenants: ratio’s Net recourse borrowings Recourse leverage: < 2.5* Recourse EBITDA Recourse EBITDA Recourse interest cover: > 4.0 Recourse interest expenses Net Worth Recourse solvency ratio: > 15% Recourse assets * In Q2 and Q3, seasonal pattern permits < 2.75 12
Slide 13: Recourse leverage ratio June 2014 (1)
Recourse leverage ratio 30 June 2014 (1) BAM BAM net recourse borrowings 161 Joint ventures net recourse borrowings 21 Total net recourse borrowings (a) 182 (in € million, unless stated otherwise) 13
Slide 14: Recourse leverage ratio June 2014 (2)
Recourse leverage ratio 30 June 2014 (2) Total BAM operating result -8.0 +/+ Depreciation & amortisation 86.5 -/- Non recourse results -5.9 Normalisations +/+ Impairments 41.5 -/- Pensions cash effects -28.5 +/+ Restructuring 28.9 +/+ Others 4.9 BAM recourse EBITDA 119.4 Joint venture recourse EBITD
Slide 15: Recourse interest cover ratio June 2014
Recourse interest cover ratio 30 June 2014 Total Total recourse EBITDA (a) 128.7 BAM Net interest expense -9.6 PPP finance income 37.5 Capitalised interest 19.5 Non recourse interest -34.5 BAM net recourse interest 12.9 Joint venture recourse interest 4.6 Total recourse interest (b) 17.5 Recourse in
Slide 16: Recourse solvency ratio June 2014
Recourse solvency ratio 30 June 2014 Total Group equity 929 Hedge reserves 96 Pension reserves 240 Subordinated loan 124 Net worth (a) 1,389 Total assets 5,047 -/- Non recourse loans 407 Total recourse assets (b) 4,640 Recourse solvency ratio (> 15%) (a/b) 30% (in € million, unless stated otherwise)
Slide 17: Recourse leverage, interest coverage and solvency ratios
Recourse leverage ratio Recourse interest coverage ratio 3,0 9,0 2,5 7,8 7,6 7,7 7,4 8,0 7,3 2,0 1,5 7,0 6,4 6,5 6,4 6,6 6,1 1,0 5,5 0,5 1,3 1,5 1,4 1,5 0,9 1,4 6,0 5,0 0,9 1,0 4,8 0,8 4,5 0,0 5,0 0,4 -0,5 -0,2 -0,1 4,0 -1,0 -1,5 -0,9 -1,1 3,0 Recourse leverage Limit recourse leverage Recourse inter
Slide 18: Order book
Order book 1H14 FY13 Δ Order book higher in Construction and operational sectors in M&E services 4,290 4,013 +7% NL and UK, as well in PPP Civil engineering 5,433 5,090 +7% Reduction Property Property 935 983 -5% order book caused by PPP 685 547 +25% successful divestments 1H14 Eliminations and othe
Slide 19: BAM's Dutch operational activities
BAM’s Dutch operational activities 1) Total BAM’s Dutch operational activities 4.000 3.500 3.000 2.500 2.000 1.500 1.000 500 0 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Order book Revenue (rolling 12-months) 1) Dutch Construction and M&E services and Civil engineering com
Slide 20: Update actions to improve operational and financial performance
Update actions to improve operational and financial performance • Some of these actions have already started; others are still in the preparation phase, which will be completed early in October • A cost reduction programme to deliver annual savings of at least €100 million by the end of 2015 • Restr
Slide 21: Outlook
Outlook Royal BAM Group expects the result before tax, impairments and restructuring charges for the full year of about €20 million. There will be restructuring charges in the second half of 2014 and in 2015. Royal BAM Group | Half-year results 2014 21
Slide 22: Annexes
Annexes: • Property Netherlands • Property investments • PPP investments • Revenue and results (2nd Quarter) • Net debt analysis Royal BAM Group | Half-year results 2014 22
Slide 23: Property Netherlands
Property Netherlands 2014 2013 Number of home sold from own development: Q1 444 265 Q2 492 266 Q3 379 Q4 455 Total 1,365 Stock of unsold and unlet premises : 1H13 FY13 - homes under construction (number) 363 288 - homes finished (number) 116 161 - commercial property (m2) 17,800 18,300 Royal BAM Gro
Slide 24: Property investments
Property investments Q2 2014 Q4 2013 Total investments: Land and building rights 492 484 • NL: 740 million Property development 448 544 • UK: 130 million Total investments (a) 940 1,028 • BE: 32 million • IE: 38 million Non-recourse loans 175 271 Recourse loans 73 71 Total loans (b) 248 342 Property
Slide 25: Public private partnerships investments
Public private partnerships investments Q2 2014 Q4 2013 PPP assets (intangibles, receivables) 336 424 Non-recourse PPP loans -229 -295 Recourse PPP loans (equity bridges) -49 -76 PPP associates/JV/other 44 56 Investment equity1) 102 109 Committed equity2) 94 126 Total invested & committed equity 196
Slide 26: Revenue and results (2nd Quarter)
Revenue and results (2nd Quarter) 2Q 2014 2Q 2013 Revenue Result1) Revenue Result1) Construction and M&E Services 732 1.6 763 -0.9 Civil engineering 1,019 -19.4 1,013 7.0 Property 127 3.8 81 -6.9 PPP 50 7.9 71 3.7 Eliminations and other -117 1.5 -122 0.0 Total sectors 1,811 -4.6 1,806 2.9 Group over
Slide 27: Net debt analysis
Net debt analysis 1H14 FY13 1H13 Non-recourse PPP loans 229 295 274 Non-recourse project financing 178 276 274 Other project financing 130 157 154 Total ‘project related’ 537 727 702 Subordinated loan 124 124 124 Financial lease liabilities 39 43 46 Bank overdrafts and other loans 186 37 165 Total i