Drake & Scull International (P J S C) · DFM:DSI
Drake & Scull International (P J S C) — Q1 2014 Earnings Presentation
53 slides from Drake & Scull International (P J S C)'s earnings presentation, July 2014
Slide 1: Q1 2014 Investor Relations Presentation
Q1 2014 Investor Relations Presentation
Slide 2: People. Innovation. Passion
People. Innovation. Passion 2
Slide 3: Table of Contents
Table of Contents • Company Introduction 05 • Financial Highlights 24 • Backlog Analysis & Project Wins 36 • Strategy & Tomorrow 43 People. Innovation. Passion 3
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Slide 25: Table of Contents
Table of Contents • Financial Overview 26 • YoY Comparison (Revenues, Gross Margin, EBITDA, EPS) 27 • Revenues Distribution by Geography 28 • Revenue, EBITDA, Net Profit CAGR 29 • Debt / Equity, Current Ratio 32 • Free Cash Flow 33 • Operating Cash Flow 34 • Receivables & Retention 35 People. Innova
Slide 26: Financial Overview
Financial Overview Key Financial Statistics | Ownership Structure DSI is a multibillion Dollar company with a strong history of solid financial growth, consistent results and profitability. Here are some key financial statistics. DSI is a publicly listed on the Dubai Financial Market and has a track
Slide 27: Year-on-Year Comparison (FY 2012 Vs FY 2013)
Year-on-Year Comparison (FY 2012 Vs FY 2013) 4,867 FY 2012 FY 2013 FY 2012 FY 2013 0.073 3,321 0.042 115 182 Revenue Net Profit EPS Consolidated ( AED Million) FY 2013 FY 2012 DSI PJSC (AED Millions) Revenues 4,867 3,321 Gross Profit 497 383 Operating Profit 186 118 Net Profit 182 115 Earning Per Sh
Slide 28: FY 2013 – Revenues Distribution by Geography
FY 2013 – Revenues Distribution by Geography 3,000 2,820 70% 60% 2,500 58% 50% 2,000 40% 1,500 30% 1,007 1,000 20% 21% 6% 7% 10% 500 3% 3% 306 3% 2% 1% 0% 2% 357 0% -7% 0% 117 147 167 135 85 53 11 2 (340) - -10% (500) -20% (Jan-Dec) 2013 Revenues % of the Total Revenue • All figures in AED Million P
Slide 29: Revenues CAGR (FY 2009 - FY 2013)
Revenues CAGR (FY 2009 - FY 2013) 7000 6000 CAGR:20.49% 5000 4000 Revenue CAGR 3000 2000 1000 0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 • All figures in AED Million People. Innovation. Passion 29
Slide 30: EBITDA CAGR (FY 2009 - FY 2013)
EBITDA CAGR (FY 2009 - FY 2013) 300 CAGR: -0.25% 250 200 150 EBITDA CAGR 100 50 0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 • All figures in AED Million People. Innovation. Passion 30
Slide 31: Net Profit CAGR (FY 2009 - FY 2013)
Net Profit CAGR (FY 2009 - FY 2013) 300 250 CAGR:-8.46% 200 150 Net Profit CAGR 100 50 0 2009 2010 2011 2012 2013 • All figures in AED Million • Net Income in 2009 excludes income from IPO ( AED 93 Million) People. Innovation. Passion 31
Slide 32: Debt / Equity & Current Ratio (FY 2010 - FY 2013)
Debt / Equity & Current Ratio ( FY 2010 - FY 2013) 2010 2011 2012 2013 Benchmark Current Ratio 1:1.4 1:1.3 1:1.3 1:1.3 1:1.5 Debt to Equity 24:76 23:77 32:68 27:73 60:40 100% 90% 24% 33% 32% 27% 80% 70% Debt to Equity 60% 50% 40% 76% 77% 68% 73% 30% 20% 10% 0% FY 2010 FY 2011 FY 2012 FY2013 People.
Slide 33: Free Cash flow (FY 2010 – FY 2013)
Free Cash flow ( FY 2010 – FY 2013) 250 500.0% 223 182 400.0% 200 157 300.0% 150 Free Cash flows 200.0% 40 % Change 100 100.0% 50 0.0% - -100.0% FY 2010 FY 2011 FY 2012 FY 2013 • All figures in AED Million People. Innovation. Passion 33
Slide 34: Operating Cash flow (FY 2009 – FY 2013)
Operating Cash flow ( FY 2009 – FY 2013) 200 200% 165 150% 100 100% - 50% FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 0% (100) Operating Cash flow (121) -50% (132) % Change (200) (198) -100% (300) -150% -200% (400) -250% (448) (500) -300% • All figures in AED Million People. Innovation. Passion 34
Slide 35: Receivables & Retention (FY 2010 - FY 2013)
Receivables & Retention (FY 2010 - FY 2013) 2,000 30.0% 1,880 1,647 1,800 25.0% 1,533 1,600 20.0% 1,400 1,307 15.0% 1,200 Trade receivables 1,000 10.0% & retention 800 5.0% % Change 600 0.0% 400 -5.0% 200 - -10.0% FY 2010 FY 2011 FY 2012 FY 2013 • All Figures in AED Billion • The Increase in receiva
Slide 36: Summary of Backlog Analysis & Project Wins to Date
Summary of Backlog Analysis & Project Wins to Date People. Innovation. Passion 36
Slide 37: Summary of Backlog Analysis / Project Wins
Summary of Backlog Analysis / Project Wins • Backlog 39 • Project Awards 41 People. Innovation. Passion 37
Slide 38: Backlog as of 31st December 2013 AED 12.0 BN
Backlog as of 31st December 2013 AED 12.0 BN Backlog Business Stream Subsidiary Backlog (AED PR O&G Million) AED 623 AED 255 DSI Abu Dhabi 825 5% 2% DSIC Egypt 319 DSI KSA 1,017 DSE DSI Dubai 352 AED 5,078 DSI Kuwait 337 CIVIL 42% DSI Oman 53 AED 6,085 DSI Qatar 952 51% DSE DSI Thailand 3 DSI Jordan
Slide 39: Backlog CAGR (FY 2009 - FY 2013)
Backlog CAGR (FY 2009 - FY 2013) 16,000 CAGR: 28.81% 14,000 12,000 10,000 8,000 Backlog CAGR 6,000 4,000 2,000 0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 People. Innovation. Passion 39
Slide 40: Project Awards (FY 2009 - FY 2013)
Project Awards ( FY 2009 - FY 2013) 7,5 FY 2013 5,4 FY 2012 FY 2011 4,4 FY 2010 3,0 FY 2009 2,0 0 1 2 3 4 5 6 7 8 9 10 • All Figures in AED Billion People. Innovation. Passion 40
Slide 41: Project Awards FY 2013 - Distribution by Geography
Project Awards FY 2013 - Distribution by Geography 3,500 3,143 3,000 2,500 2,000 1,500 1,344 839 924 1,000 640 500 264 177 73 80 0 KSA UAE Qatar Jordan Algeria India Romania Turkey Egypt FY 2013 PROJECT AWARDS - AREA BREAKDOWN KSA 3,143 42% UAE 1,344 18% Qatar 839 11% Jordan 924 12% Algeria 640 9% I
Slide 42: Project Awards (FY 2014, Q1 – Q2 YTD)
Project Awards ( FY 2014 , Q1 – Q2 YTD) 1400 1192 1200 Awards Breakdown by Business Awards Breakdown by Area 1000 Stream based on Project Value 3% 800 Engineering 31% Waste Water 600 520 47% Construction 400 328 Rail 166 18% 200 128 50 0 UAE KSA Kuwait Europe India Total Project Size Business Stream
Slide 43: Strategy & Tomorrow
Strategy & Tomorrow People. Innovation. Passion 43
Slide 44: Table of Contents
Table of Contents • MENA Outlook 45 • Key Highlights 49 • Growth Strategy 52 People. Innovation. Passion 44
Slide 45: MENA – 2018 e Outlook
MENA – 2018 e Outlook* Outlook: Planned project pipeline of $820bn over the next five years. People. Innovation. Passion 45
Slide 46: MENA – 2018 e Outlook
MENA – 2018 e Outlook* Sectors: Construction and infrastructure drive 75% of the planned project pipeline People. Innovation. Passion 46
Slide 47: MENA – 2018 e Outlook
MENA – 2018 e Outlook* People. Innovation. Passion 47
Slide 48: GCC Vs. Mena Project Market 2017 e
GCC Vs. Mena Project Market 2017 e* GCC $1,081bn) Big shift in this picture is due entirely to the inclusion of the Saudi nuclear and renewables program. Iraq has potential to be at least as big as UAE People. Innovation. Passion 48
Slide 49: Key Highlights
Key Highlights Overall, over the next five years, GCC & MENA projects Booming market is expected to stabilize around the $130bn & $ 820 bn range while the greater Middle East market, boosted by Industry Iraq, could hit as much as $100bn Backlog DSI managed to substantially grow its Backlog to reach
Slide 50: Key Highlights
Key Highlights Strong DSI secured AED 7.5 billion worth of work across the MENA & LEVANT region in fiscal 2013 Momentum Operational Operating Profit for FY 2013 Stands at AED 186 million constituting a 58 % Year on Year increase over FY 2012 Leverage with sustainable gross margins at 10% Continued D
Slide 51: Growth Strategy
Growth Strategy • On Track for further expansion in India and Iraq in the Infrastructure and Engineering Businesses • Consolidation of MENA operations with focus on Qatar, Abu Dhabi & KSA Expansion • Selective Tendering Strategy to target projects with healthy margins and lower risks Mode • Investme
Slide 52: Growth Strategy 2014-2015
Growth Strategy 2014-2015 Key Drivers of Revenue Growth: – Continued economic growth in key markets such as KSA, Qatar, UAE (especially AUH) – Increase in the % of contracts won as a main contractor, which should contribute to other business streams such as MEP – Ramping up of new markets geographie
Slide 53: People. Innovation. Passion
People. Innovation. Passion
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