Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (November 2017)
31 slides from Orascom Construction's investor presentation, November 2017
Slide 1: Corporate Presentation November 2017
Corporate Presentation November 2017
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in the MENA and USA Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shares traded on both exchanges are fungible Backlog of USD 4.7 billion as of 30 June 2017 and pro forma backlog of USD
Slide 3: Strong Track Record of Growth and International Expansion
Strong Track Record of Growth and International Expansion History of Creating Value for Shareholders Growing Family Construction Business Incubating Cement, Port & Fertilizer Lines Building a Concessions Portfolio Roots trace back to 1950s in Egypt where first Created a top 10 global cement prod
Slide 4: A Wide Range of Capabilities Across Various Geographies
A Wide Range of Capabilities Across Various Geographies Orascom Construction Limited operates under three brands and owns 50% of BESIX Group Orascom Weitz Established in 1950 Established in 1855 Leading MENA industrial and infrastructure contractor Backlog: USD 582 million Backlog: USD 3.4
Slide 5: Geographic and Sector Diversification
Geographic and Sector Diversification Algeria Rest of World 2.2% of Backlog 3.8% of Backlog United States 26.9% of Backlog Egypt 62.4% of Backlog Saudi Arabia 4.7% of Backlog Large geographic presence – each region with an established customer base Note: Backlog geographic segmentation is as of 30 J
Slide 6: Select Construction Track Record
Select Construction Track Record • Completed over 17,000 MW of power generation projects in the Middle East Power • Currently constructing 11,000 MW of power generation capacity in Egypt • Key Cairo Metro player since the late 1980s • Over 1,000km of rail projects in the Middle East (mainly Egypt an
Slide 7: Healthy Consolidated Backlog Level
Healthy Consolidated Backlog Level Current backlog size and quality fully supports the Group’s revenue and profitability targets as it pursues robust bidding pipeline Focus on pursuing quality projects where the Group has a competitive edge and is confident in the source of funding US backlog to com
Slide 8: Backlog Diversification
Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client OCI N.V. USA (OCI N.V.) Commercial 3.2% 3.2% 14.9% Private USA 17.0% 23.7% Industrial 6.5% Other 3.8% Egypt Algeria 62.4% 2.2% Saudi Arabia Infrastructure Public 4.7% 78.6% 79.8% Backlog by Brand Backlog by Currency Cur
Slide 9: Backlog Evolution
Backlog Evolution Backlog by Geography Backlog by Sector $3.8bn $5.8bn $6.7bn $5.3bn $4.7bn $3.8bn $5.8bn $6.7bn $5.3bn $4.7bn 0.2 1.1 0.3 0.6 2.5 0.3 1.4 0.9 0.2 0.7 2.4 0.1 1.9 1.9 0.7 0.3 1.3 0.3 0.7 0.6 0.2 0.1 0.2 0.2 0.2 1.1 0.1 1.2 4.2 3.7 3.7 0.8 3.2 2.9 3.0 2.8 2.1 1.2 1.5 2013 2014 2015 20
Slide 10: Growing US Business
Growing US Business Established to Pursue US Acquiring Strong Organically Strengthening Continue to Grow US Government Work Presence Within the US US Operations Business Established in 1985 to work on US Acquired In 2012, allowing the Established in 2013 to develop The Group is focused on gr
Slide 11: Investment in BESIX Group
Investment in BESIX Group Highlights An international Belgian construction player founded in 1909 OC acquired 50% of BESIX in a joint leverage buyout in partnership with BESIX management in 2004 ‒ Held value as an investment in associates on Orascom Construction’s balance sheet at a book value o
Slide 12: Pro Forma Snapshot Including BESIX
Pro Forma Snapshot Including BESIX BESIX continues to provide healthy net income contribution and resumed annual dividend ‒ Orascom received EUR 25 million from BESIX in June 2017 Standalone backlog of EUR 3.3 billion and new awards of EUR 1.4 billion in H1 2017 Standalone net cash position of
Slide 13: 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% H1 2017 revenue: USD 2
Slide 14: Proven Financing Capabilities
Proven Financing Capabilities Funding requirements are supported by strong relationships with international, regional and Egyptian financial institutions (the group maintains relationship with more than 40 lending institutions) Bilateral Facilities & Bilateral facilities with limits close to USD
Slide 15: Financial Section
Financial Section
Slide 16: Financial Highlights
Financial Highlights Revenue of USD 2,012.9 million, EBITDA of USD 111.1 million and net income to shareholders of USD 51.7 million in H1 2017 ‒ Y-o-y increase in EBITDA and net income of 12.1% and 4.7%, respectively Net cash position of USD 202.1 million as of 30 June 2017 Current backlog pro
Slide 17: Summary Financials
Summary Financials Summary Income Statement USD million H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Revenue 2,012.9 1,997.0 0.8% 947.2 1,024.1 (7.5)% MENA 1,079.1 1,015.1 6.3% 484.3 498.5 (2.8)% USA 933.8 981.9 (4.9)% 462.9 525.6 (11.9)% EBITDA 111.1 99.1 12.1% 54.0 50.3 7.4% MENA 84.6 89.7 (5.7)%
Slide 18: Net Cash Position as of 30 June 2017
Net Cash Position as of 30 June 2017 Net cash position of USD 202.1 million as of 30 June 2017 Evolution of Net Debt Pre-Demerger Post-Demerger $796 $807 $589 $575 $571 $507 $448 $466 $439 $428 $420 $437 $369 $303 $272 $235 31 Dec 11 31 Dec 12 31 Dec 13 1 Jan 15 31 Dec 15 30 June 16 31 Dec 16 30 Jun
Slide 19: Income Statement
Income Statement USD million H1 2017 H1 2016 Q2 2017 Q2 2016 Results Commentary Revenue 2,012.9 1,997.0 947.2 1,024.1 Revenue: Cost of sales (1,845.5) (1,844.5) (866.1) (953.0) MENA accounted for 54% of total revenue in H1 2017, of Gross profit 167.4 152.5 81.1 71.1 which Egypt represented 91%, wh
Slide 20: Balance Sheet
Balance Sheet USD million 30 June 2017 31 Dec 2016 Results Commentary ASSETS Non-current assets Non-current assets PPE of USD 150.2 million, with net additions of USD 16.0 Property, plant and equipment 150.2 158.4 million in H1 2017 Goodwill 13.8 13.8 Goodwill relates primarily to the acquisitio
Slide 21: Balance Sheet
Balance Sheet USD million 30 June 2017 31 Dec 2016 Results Commentary EQUITY Equity Share capital 116.8 117.8 The decrease in share capital and share premium is due to Share premium 761.5 768.8 the cancellation of 1 million treasury shares as part of EGX Reserves (318.9) (348.4) share buyback Reta
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 30 June 2017 30 June 2016 Results Commentary Net profit 58.5 48.5 Cash flow from operating activities: Operating cash flow of USD 9.8 million in H1 2017 partly as Adjustments for: a result of changes in working capital items, compared to an Depreciation 20.1 27.9 ou
Slide 23: Cash Flow Statement
Cash Flow Statement USD million 30 June 2017 30 June 2016 Results Commentary Cash flow used investing activities: Investment in PPE (16.0) (59.4) Capex in H1 2017 lower compared to the previous year Proceeds from sale of PPE 1.3 3.4 Cash flow from / (used in) investing activities (14.7) (56.0) T
Slide 24: Appendix
Appendix
Slide 25: Board of Directors
Board of Directors Chairman CEO Non-Executive Jérôme Guiraud Osama Bishai Salman Butt Non-Executive Board Non-Executive Chairman Executive Board Member Member Non-Executive Independent Non-Executive Mustafa Abdel- Sami Haddad Khaled Bichara Azmi Mikati Wadood Non-Executive Board Member Non-Executive
Slide 26: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value Shareholder return: IRR of c.40% on USD basis for OCI S.A.E. / OCI N.V. from IPO in 1999 to demerger in March 2015 – Shareholder return driven by strong longstanding leadership along with investment vision of principal shareholders Strategy
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 is now a leading global company employing c.72,000 people, with over 60 years of experience in MENA markets
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 industrial businesses Commitment instilled in management and founding shareholders to propel
Slide 29: Constructed Fertilizer Capacity
Pursuing Value Accretive Investments Construction business was integral to OCI’s value creation story: – Developed and incubated businesses both independently and with partners for nearly 20 years Key executives have been with the Group for 10+ years, guaranteeing OC’s continuity in its ability
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 Limited (the “Company”). The information set out in this document shall n
Slide 31: Contact Investor Relations
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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