16 slides from Indra Sistemas, S.a. Class A's earnings presentation, Nov 7, 2017
Slide 1: Results 9M17
RESULTS 9M17 November 7th, 2017
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS LIVE EVENT: The Company will host a conference call for investors and analysts today at 18:30 (CET). Please find below conference call telephone numbers: Spain: +34 914 142 021 France: +33 172 001 510 UK: +44 203 043 2440 US: +1 646 722 4907 Access code: 52872403# Access to t
Slide 3: Disclaimer
This presentation has been produced by Indra for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or any advice or recommendat
Slide 4: Main Headlines
RESULTS 9M17 MAIN HEADLINES 1 • 9M17 Order Intake up 13%, Revenues +8.5% and EBIT +19% due to Tecnocom’s consolidation and the acceleration of organic growth in 3Q17 2 • Organic revenues (ExTecnocom) -1% in 9M17 and +7% in 3Q17. Turn around happening as expected, mainly backed by Elections and ATM 3
Slide 5: Revenues up +8% in reported terms
RESULTS 9M17 REVENUES UP +8% IN REPORTED TERMS 9M17 Sales Growth 3Q17 Sales Growth Reported +8% Reported +19% Local Currency +8% Local Currency +20% Organic Terms (Ex-Tecnocom)(1) -1% Organic Terms (Ex-Tecnocom)(1) +7% €M €M 167 13 15 85 40 2.116 7 1.951 737 619 9M16 FX Impact Tecnocom Underlying 9M
Slide 6: Revenues by Vertical
REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported Defence & 847 -4% / -4% 811 Security 401 T&D 21% +2% / +2% 408 19% Transport & 446 403 Traffic 23% -10% / -10% 19% +17% / +18% 1.305 Energy & 1.104 Industry +16% / +16% 341 16% 15% 293 IT Financial Services 18% +23% / +24% 437 21% 352 PPAA
Slide 7: Revenues by Region
REVENUES BY REGION Revenues (€M) Local Currency / Reported +8% / +8% 2.116 1.951 Spain +14% / +14% 44% 985 47% 863 America 25% 481 -6% / -3% 467 22% Europe 18% 352 +2% / +2% 359 17% AMEA 13% 255 +20% / +20% 306 14% 9M16 9M17* (*) Displayed data includes Tecnocom consolidation since April 18th, 2017
Slide 8: Order Intake up +13% in reported terms
ORDER INTAKE UP +13% IN REPORTED TERMS Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported 2.351 +13% / +13% 898 -17% / -17% 2.080 745 Defence & 22% 454 Security 359 15% 1.074 46% -21% / -21% T&D Spain 48% +7% / +7% 1.001 21% 444 386 Transpor
Slide 9: Brazil
RESULTS 9M17 BRAZIL (local currency) 9M16 9M17 Variation Order Intake 529,3 586,8 +11% Revenues 625,2 569,1 -9% EBIT(*) -15,3 -11,6 -24% EBIT Margin(*) -2,4% -2,0% +0,4 pp 6 out of the 7 onerous projects already closed/finished (*) EBIT includes contingencies 9 Conference Call – Results 9M17 | 9
Slide 10: EBIT Margin Evolution
RESULTS 9M17 EBIT MARGIN EVOLUTION 9M EBIT Margin Evolution 9M EBIT margin by Divisions 5,8% T&D IT +0,5pp 5,3% 13,0% 12,0% 18,7% 124 104 1,4% 0,3% 9M16 9M17* 9M16 9M17* EBIT 9M16 EBIT 9M17* 3Q EBIT Margin Evolution EBIT Margin Evolution Ex-Tecnocom 6,1% 6,3% +0,8pp 5,5% 7,0% 119 35,5% 46 34 46 EBIT
Slide 11: Strong operating FCF generation due to operating improvement and 3Q17 NWC
RESULTS 9M17 STRONG OPERATING FCF GENERATION DUE TO OPERATING IMPROVEMENT AND 3Q17 NWC Quarterly FCF (€M) 9M15: €-187M 9M16: €44M 9M17: €44M 137 140 75 47 2 -5 -5 -23 -26 -79 -85 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 Accumulated FCF LTM (€M) OPERATING FCF BEFORE WC (€M) 163 181 184
Slide 12: Net Debt Bridge
RESULTS 9M17 NET DEBT BRIDGE Net Debt Bridge – Tecnocom’s split(€M) 185 16 44 680 523 Net Debt FY16 9M17* Free Cash Flow Tecnocom Payment Net Debt Tecnocom & Net Debt 9M17* Others Net Debt Bridge – Cash Flow (€M) FCF = €44M 201 27 11 24 154 31 16 680 523 Net Debt FY16 Operating Cash Net Working Othe
Slide 13: Net Working Capital Evolution
RESULTS 9M17 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) 5 4 10 4 9 +2 11 10 +1 11 -3 10 94 -2 77 5 2 -1 74 76 -81 74 +1 -4 -82 -80 -76 -80 FY16 9M17* 1H17* 9M17* Accounts Receivable Accounts Payable Inventory (*) Displayed data includes Tecnocom consolidation since April 18th, 2017 13 C
Slide 14: Net Debt Evolution
RESULTS 9M17 NET DEBT EVOLUTION 837 Net Debt (€M) 825 (173) (176) (187) 745 (187) 700 680 659 659 666 Net Debt (187) (162) (187) (187) (Factoring)(1) 532 554 523 (187) Indra Stand-alone (187) 460 Net Debt Net Debt/EBITDA LTM (Times)(2) 6.6x 5.9x 5.4x 4.7x 3.1x 3.1x 2.3x 2.3x 2.9x 2.5x ND/ EBITDA 2,4
Slide 15: Debt Structure
RESULTS 9M17 DEBT STRUCTURE 9M17* 2016 (€M) Total % of total Total % of total L/T Debt 1,192 90% 1,136 95% S/T Debt 127 10% 61 5% Gross Debt 1,318 100% 1,197 100% Cost of Gross Debt 2.2% 2.8% Cash & Others 638 n.m. 674 n.m. Net Debt 680 n.m. 523 n.m. Cost of Net Debt 3.0% 3.3% Available Credit Facil
Slide 16: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com