Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (September 2015)
32 slides from Orascom Construction's investor presentation, September 2015
Slide 1: Corporate Presentation September 2015
Corporate Presentation September 2015
Slide 2: Highlights
Highlights Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shares traded on both exchanges are fungible Global contractor with a major position in MENA and US infrastructure and industrial sectors – Record backlog of USD 7.2 billion as of 30 June 2015 and pro forma backlog of USD 9.0 bi
Slide 3: Strong Track Record of Growth and International Expansion
Strong Track Record of Growth and International Expansion 2005 - 2014- 1950 1985 1999 2002 2004 2009 2011 2012 2008 2015 Significant backlog growth Formed Orascom Acquires Weitz Jointly acquires with major awards in 2012 to Initiatives to Founded by Awarded Saudi Ltd (60% Launches 50- BESIX Group in
Slide 4: Strategic Geographic and Sector Diversification
Strategic Geographic and Sector Diversification Algeria Rest of World 2% of Backlog 3% of Backlog United States 33% of Backlog Egypt 47% of Backlog Saudi Arabia 15% of Backlog ENR Ranking: 40 on International ENR Ranking: 238 on Top 400 US ENR Ranking: 84 on Top 400 US ENR Ranking: 73 on Int
Slide 5: Highest Backlog Level in Company History
Highest Backlog Level in Company History YTD New Awards of USD 3.3 billion 8.0 7.2 5.8 6.0 4.9 4.9 USD Billion 4.8 3.8 4.0 3.3 3.3 2.7 2.6 2.0 2.0 1.2 0.0 2011 2012 2013 2014 H2 2014 H2 2015 Backlog New Awards USD million 2011 2012 2013 2014 Q1 2015 Q2 2015 Backlog 3,321.3 4,869.3 3,839.9 5,833.1 5,
Slide 6: Backlog Segmentation – 30 June 2015
Backlog Segmentation – 30 June 2015 Backlog by Sector Backlog by Client Backlog by Brand Weitz Commercial 9.1% OCI N.V. 13.2% 17.7% Contrack Watts 8.7% Industrial 23.7% Private 17.2% Infrastructure 63.1% Public Orascom 65.0% Construction 82.2% Backlog by Geography Backlog by Currency Mitigating FX R
Slide 7: Pursuing Infrastructure Investments
Pursuing Infrastructure Investments Orascom Construction is Focused on Expanding its Infrastructure Investments Portfolio Investment creates self-generated work for the Group whereby the construction team serves as the project’s EPC contractor Attractive The Group remains the owner and operator
Slide 8: Leading Power Player
Leading Power Player Completed c.17,000 MW of Power Generation Projects in MENA Strong track record in conventional and renewable energy cements the Group as a leading MENA EPC power contractor and positions it to become an IPP developer Market Position Approximately 30% of the Group’s current b
Slide 9: Growing US Business and Track Record
Growing US Business and Track Record Established to Pursue US Acquiring Strong Organically Strengthening USA Government Work Presence Within the US Operations Established in 1985 to work on US Acquired In 2012, allowing the Established in 2013 to develop OCI federal and USAID projects in Egypt
Slide 10: Strategic Investment in BESIX: 53% of Backlog in MENA
Strategic Investment in BESIX: 53% of Backlog in MENA Highlights Founded in 1909 Key strategic player that complements OC, allowing for joint cooperation on projects Acquired 50% of the Global Presence: operates in 6 continents with a key focus on Europe, MENA, Australia and select African m
Slide 11: Strong Financing Capabilities
Strong Financing Capabilities Developed, structured and financed over USD 10 billion in corporate and project financing debt over the last decade Leveraged our expertise to secure debt for complex industrial and infrastructure projects worldwide across several industries Strong relationship wi
Slide 12: Construction Materials and Property Management
Construction Materials and Property Management Orascom Construction holds a MENA-focused construction materials and property management portfolio Attractive outlook for portfolio on the back of increased construction spending in the region Blended EBITDA margin of 20% in Q2 2015 and proportionate bo
Slide 13: Legal Update
Legal Update Sidra Medical Research Center – Qatar Golden Pyramids Plaza (City Stars) – Egypt In July 2014, a consortium of OHL and Contrack received a Notice The Group and its partner, Consolidated Contractors International of Termination from the Qatar Foundation for Education, Science & Co. S
Slide 14: Financial Section
Financial Section
Slide 15: Summary Financials
Summary Financials USD million Q2 2015 Revenue by Geography1 H1 2015 Q2 2015 Q1 2015 Rest of World Revenue 1,874.4 1,016.6 857.8 3.3% EBITDA 101.4 63.5 37.9 USA (OCI N.V.) Margin 5.4% 6.2% 4.4% 26.4% Net income attributable to shareholders 39.8 34.0 5.8 Egypt 42.4% Margin 2.1% 3.3% 0.7% 30 June 2015
Slide 16: Net Debt Position
Net Debt Position Evolution of Net Debt Loans & borrowings Cash Net debt 796 807 589 586 564 466 476 448 428 420 421 397 369 371 31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Sep 2014 1 Jan 2015 31 Mar 2015 30 June 2015 USD million 31 Dec 2011 31 Dec 2012 31 Dec 2013 31 Sep 2014 1 Jan 2015 31 Mar 2015 30 J
Slide 17: Income Statement
Income Statement USD million H1 2015 Q2 2015 Q1 2015 Revenue 1,874.4 1,016.6 857.8 Cost of sales (1,733.8) (932.1) (801.7) Gross profit 140.6 84.5 56.1 Margin 7.5% 8.3% 6.5% Other income 5.7 3.5 2.2 Selling, general and administrative expenses (74.1) (39.4) (34.7) Results from operating activities 7
Slide 18: Balance Sheet
Balance Sheet USD million 30 June 2015 1 Jan 2015 ASSETS Non-current assets Property, plant and equipment 264.5 272.3 Goodwill 13.8 12.4 Trade and other receivables 130.2 117.2 Investment in associates and joint ventures 365.8 389.4 Deferred tax assets 3.9 3.9 Total non-current assets 778.2 795.3 Cu
Slide 19: Balance Sheet
Balance Sheet USD million 30 June 2015 1 Jan 2015 EQUITY Share capital 118.0 - Share premium 772.8 - Reserves (76.1) (17.0) Retained earnings 62.4 744.7 Equity attributable to owners of the Company 877.1 727.7 Non-controlling interest 73.3 76.7 TOTAL EQUITY 950.4 804.4 LIABILITIES Non-current liabil
Slide 20: Cash Flow Statement
Cash Flow Statement USD million 30 June 2015 Net profit 44.7 Adjustments for: Depreciation 29.2 Interest income (2.2) Interest expense (including gains / (losses) on derivatives) 17.1 Foreign exchange gain / (loss) and others 4.9 Share in income of equity accounted investees (16.5) Loss from acquisi
Slide 21: Cash Flow Statement
Cash Flow Statement USD million 30 June 2015 Investment in subsidiary, net of cash acquired (2.7) Investments in PPE (37.0) Proceeds from sale of property, plant and equipment 5.1 Cash flow from / (used in) investing activities (34.6) Proceeds from borrowings 406.6 Repayments of borrowings (308.2) O
Slide 22: Appendix
Appendix
Slide 23: 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 57,000 people, with over 60 years of experience in MENA markets
Slide 24: 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. since 1999 IPO – Shareholder return driven by strong longstanding leadership along with investment vision of principal shareholders Focus on infrastructure investments
Slide 25: Board of Directors
Board of Directors Chairman CEO Non-Executive Nassef Sawiris Osama Bishai Salman Butt Non-Executive Board Non-Executive Executive Board Member Member CEO CFO CEO of OCI N.V. Orascom Construction OCI N.V. Non-Executive Independent Non-Executive Arif Naqvi Sami Haddad Khaled Bichara Azmi Mikati Non-Ex
Slide 26: Commercial Strategy
Commercial Strategy Strategic Market and Geographic Expansion Establish and Leverage Strategic Partnerships and JVs Expand market presence in our core markets in MENA and USA Work in partnership with industry leaders to increase success rate in obtaining new project work Further strengthen act
Slide 27: 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 28: Backlog Evolution
Backlog Evolution Backlog by Sector Backlog by Geography 8.3% 5.5% 3.7% 13.6% 14.8% 14.6% 12.6% 13.2% 20.5% 19.5% 8.0% 32.6% 23.7% 7.1% 38.2% 29.7% 37.4% 28.2% 29.7% 19.1% 34.4% 1.7% 2.2% 3.2% 15.0% 1.4% 18.2% 21.2% 78.4% 12.4% 57.7% 63.1% 57.0% 55.6% 53.3% 47.0% 32.3% 30.9% 34.9% 2011 2012 2013 201
Slide 29: Q2 2015 Pro Forma Financials and Backlog – Consolidating 50% of BESIX
Q2 2015 Pro Forma Financials and Backlog – Consolidating 50% of BESIX USD million Orascom Construction 50% of BESIX Pro Forma Pro Forma Backlog by Geography Revenue 1,016.6 352.6 1,369.2 Europe Other GCC 8.4% 9.3% Algeria EBITDA 63.5 25.9 89.4 1.4% USA Net Income 34.0 18.8 52.8 26.0% Egypt Net Debt
Slide 30: Growth Opportunities in Orascom Construction's MENA Markets
Growth Opportunities in Orascom Construction’s MENA Markets Overview Planned pipeline 2015 – 2020E currently estimated at USD 1.4 tn 1,433 OC’s principal construction markets in the MENA region are supported primarily by strong underlying demographic, macroeconomic and infrastructure related trend
Slide 31: 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 32: www.orascom.com
Contact Investor Relations: Hesham El Halaby hesham.elhalaby@orascom.com T: +971 4 401 9191 NASDAQ Dubai: OC EGX: ORAS www.orascom.com
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