Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (January 2017)
31 slides from Orascom Construction's investor presentation, January 2017
Slide 1: Orascom Construction Limited January 2017
Orascom Construction Limited January 2017
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in the MENA and USA Backlog of USD 7.5 billion as of 30 September 2016 and pro forma backlog of USD 9.3 billion including 50% share in BESIX – Ranked #34 on ENR’s Int’l Contractors list and #82 on G
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 860 million Backlog: USD 5.8
Slide 5: Strategic Geographic and Sector Diversification
Strategic Geographic and Sector Diversification Algeria Rest of World 2.4% of Backlog 3.1% of Backlog United States 27.6% of Backlog Egypt 62.6% of Backlog Saudi Arabia 4.4% of Backlog Large geographic presence – each region with an established customer base Note: Backlog contributions as at 30 Sept
Slide 6: Select Construction Track Record
Select Construction Track Record Currently constructing over Executed Assiut and West Over 17,000 MW of power Over 40 mtpa of cement 7 petrochemical projects 11,850 MW of power Damietta power plants in generation projects in the production capacity around (ex. fertilizer) in the Middle generation ca
Slide 7: Healthy Consolidated Backlog Level
Healthy Consolidated Backlog Level 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 Backlog Excluding BESIX Increased 11.8% in 9M 2016 $7.48 $6.66 $6.69 $
Slide 8: Strategic Backlog Diversification
Strategic Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Rest of World OCI N.V. Commercial 3.1% 7.5% USA (OCI N.V.) 13.8% 7.5% Private 15.7% Industrial USA 11.2% 20.1% Algeria Egypt 2.4% 62.6% Saudi Arabia Infrastructure Public 4.4% 74.9% 76.8% Backlog by Brand Back
Slide 9: Backlog Evolution
Backlog Evolution Backlog by Geography Backlog by Sector $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $7.5bn $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $7.5bn 0.2 1.0 0.2 2.1 1.1 0.8 0.3 2.5 0.6 0.2 0.3 1.4 0.9 0.7 2.4 0.1 1.9 0.3 0.7 1.4 0.6 0.7 1.7 0.5 1.4 0.2 0.3 1.1 5.6 0.2 4.7 0.6 0.1 0.1 1.2 4.2 0.6 0.8 3.2 3.0
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: Strategic Investment in BESIX: 60% of Backlog in MENA
Strategic Investment in BESIX: 60% of Backlog in MENA 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 bal
Slide 12: BESIX: Strong Rebound in 2016
BESIX: Strong Rebound in 2016 Net income contribution to Orascom reached USD 25.0 million in 9M 2016 compared to USD 12.6 million in 9M 2015 BESIX’s standalone backlog up 10% y-o-y to EUR 3.3 billion 9M 2016 new awards up 24% y-o-y to EUR 1.8 billion BESIX book value of USD 317.7 million, representi
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% 9M 2016 revenue: USD 6
Slide 14: Proven Financing Capabilities
Proven Financing Capabilities Funding requirements are supported by strong relationships with Egyptian, regional and international financial institutions (the group maintains relationship with more than 30 lending institutions) Bilateral Facilities & Bilateral facilities with limits close to USD
Slide 15: Financial Section
Financial Section
Slide 16: Summary Financials
Summary Financials Net income attributable to shareholders increased 17.3% y-o-y to USD 75.4 million in 9M 2016 and 6.1% to USD 26.0 million in Q3 2016 ‒ EBITDA margin driven by the Group’s performance in the MENA region Continued improvement in BESIX’s performance ‒ Contribution to net income o
Slide 17: Summary Income Statement by Geography
Summary Income Statement by Geography MENA accounted for 50% of revenue in 9M 2016 led by Egypt, which represented 44% of total ‒ OCI N.V. work comprised 38% of revenue in USA during 9M 2016 EBITDA driven by continued strong performance in the MENA segment ‒ MENA EBITDA margin of 9.8% in 9M 2016
Slide 18: Net Cash Position as of 30 September 2016
Net Cash Position as of 30 September 2016 Net cash position of USD 236.0 million as of 30 September 2016 Evolution of Net Debt Pre-Demerger Post-Demerger $796 $807 $589 $575 $571 $519 $448 $466 $439 $467 $428 $420 $369 $380 $272 $283 31 Dec 11 31 Dec 12 31 Dec 13 1 Jan 15 31 Dec 15 31 Mar 16 30 June
Slide 19: Income Statement
Income Statement USD million 9M 2016 9M 2015 Q3 2016 Q3 2015 Results Commentary Revenue 2,959.1 3,019.6 962.1 1,145.2 Revenue: Cost of sales (2,740.8) (2,788.2) (896.3) (1,054.4) Revenue split evenly in 9M 2016 between MENA and USA Gross profit 218.3 231.4 65.8 90.8 Margin 7.4% 7.7% 6.8% 7.9% Gros
Slide 20: Balance Sheet
Balance Sheet USD million 30 Sept 2016 31 Dec 2015 Results Commentary ASSETS Non-current assets Non-current assets PPE of USD 284.1 million, including USD 78.1 million in Property, plant and equipment 284.1 280.2 new additions purchased during 9M 2016 Goodwill 13.8 13.8 Goodwill relates to the a
Slide 21: Balance Sheet
Balance Sheet USD million 30 Sept 2016 31 Dec 2015 Results Commentary EQUITY Equity Share capital 117.8 118.0 The decrease in share capital and share premium is due to Share premium 768.7 772.8 the cancellation of 280,113 treasury shares Reserves (117.5) (81.2) The movement in reserves is due to
Slide 22: Cash Flow Statement
Cash Flow Statement USD million 30 Sept 2016 30 Sept 2015 Results Commentary Net profit 77.7 70.0 Cash flow from operating activities: The Group generated operating cash flow of USD 223.1 Adjustments for: million in 9M 2016 compared to USD 167.1 million in 9M Depreciation 42.2 42.3 2015 Interest i
Slide 23: Cash Flow Statement
Cash Flow Statement USD million 30 Sept 2016 30 Sept 2015 Results Commentary Cash flow used investing activities: Investment in subsidiary, net of cash acquired - (2.7) Cash outflow mainly driven by customary capex Investment in PPE (78.1) (53.6) requirements in the MENA region, in-line with the G
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 Executive Board Member Member CEO/Director CEO CFO NNS Capital Orascom Construction OCI N.V. Non-Executive Independent Non-Executive Arif Naqvi Sami Haddad Khaled Bichara Azmi Mika
Slide 26: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value Shareholder return: IRR of c.40% on US$ 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 58,000 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: Pursuing Value Accretive Investments
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: 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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