18 slides from Indra Sistemas, S.a. Class A's earnings presentation, May 9, 2016
Slide 1: Results 1Q16
RESULTS 1Q16 May 9th, 2016
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS 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 917900860 UK: +44 (0) 2030092454 USA: +1 8663881927 Access to the live event: http://event.onlineseminarsolutions.com/r.htm
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 1Q16 MAIN HEADLINES Strong 1Q16 FCF generation of €46.6M (vs €-79.3M in 1Q15). Excluding personnel cost 1 optimization plan and considering same Factoring as of Dec 15, FCF would have been €89M 2 • Net Debt down -11% to €659.4M (vs €741.3M in March 2015) 3 • 1Q16 Revenues down -6% in local c
Slide 5: 1Q16 Down -6% in Local Currency, as in 4Q15
RESULTS 1Q16 1Q16 DOWN -6% IN LOCAL CURRENCY, AS IN 4Q15 1Q16 Sales Reported Growth -11% Sales in Local Currency -6% €M 30 74 44 o/w Latam o/w Latam 702 €-57M 702 628 €-27M 628 o/w Brazil o/w Brazil €-30M €-15M 1Q15 Variation 1Q16 1Q15 FX Impact Underlying growth 1Q16 5 Conference Call – Results 1Q1
Slide 6: Revenues by Region
RESULTS 1Q16 REVENUES BY REGION Revenues (€M) Local Currency / Reported -6% / -11% 702 628 • +1% growth in Public Sector Spain and -7% in Spain 42% 298 -4% / -4% Private Sector in 1Q16 46% 287 • Growth in Defence & Security and Energy & Industry • 1Q16 (-15% in local currency) due to weaker Latam 28
Slide 7: Revenues by Vertical
RESULTS 1Q16 REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported Spain Int. (LC) -4% / -5% 275 260 Defence & Security 17% 122 -7% / -7% 114 18% T&D Transport & 153 146 Traffic 22% -1% / -4% 23% -8% / -14% 428 368 Energy & 116 16% -8% / -13% 16% Industry 100 Financial 19% 133 -7% / -13% Serv
Slide 8: Order Intake Up +2% in 1Q16 in Local Currency
RESULTS 1Q16 ORDER INTAKE UP +2% IN 1Q16 IN LOCAL CURRENCY Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported +2% / -2% +2% / -2% 934 918 934 918 Defence & 11% 101 +37% / +36% Security 137 15% T&D Transport & 463 24% 220 Spain 50% +11% / +11
Slide 9: Good Progress on Our Personnel Cost Optimization Plan
RESULTS 1Q16 GOOD PROGRESS ON OUR PERSONNEL COST OPTIMIZATION PLAN % Of completion SPAIN – up to 1.750 - Sep 15-March 16: ~ 70% 1,261* Number of Employees LATAM – 1.700 1.721 as of 31/12/2015 1,721* Provision of €160M accounted in 2015 2016 2017 2018 3Q15 as non-recurrent cost for Spain P&L Expe
Slide 10: Headcount Decreasing
RESULTS 1Q16 HEADCOUNT DECREASING Total 39.155 38.995 37.931 Headcount 37.060 35.972 21.746 21.893 21.496 Spain 20.251 19.748 14.081 13.723 13.453 Latam 13.084 12.938 1.818 1.814 1.775 1.720 EU/USA 1.673 AMEA 1.510 1.565 1.576 1.636 1.613 1Q15 2Q15 3Q15 4Q15 1Q16 10 Conference Call – Results 1Q16 |
Slide 11: Brazil Starting to Turn Around
RESULTS 1Q16 BRAZIL STARTING TO TURN AROUND (local currency) 1Q15 1Q16 Variation Order Intake 224M 184M -18% Revenues 238M 201M -16% EBIT -52M 5M NA EBIT Margin -22% 2.5% +24.5pp • 2 out of the 7 onerous projects already closed/finished • Remaining onerous projects on track • New organization, slimm
Slide 12: Margin Improvement Because of Better Direct Margin and Efficiency Plans
RESULTS 1Q16 MARGIN IMPROVEMENT BECAUSE OF BETTER DIRECT MARGIN IN CURRENT PROJECTS AND EFFICIENCY PLANS Recurrent EBIT Margin 1Q16 Contribution Margin by Divisions T&D IT 8,6% 13,2% 19,0% 8,9% 15,0% 4,7% 4,6% Contribution Margin Overheads Recurrent EBIT Margin 1Q15 1Q16 1Q15 1Q16 1Q16 1Q16 Quarterl
Slide 13: Strong FCF Generation
RESULTS 1Q16 STRONG FCF GENERATION Quarterly FCF (€M) 137 110 Underlying FCF 52 47 FCF -23 -79 -85 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 110 25 Accumulated FCF LTM (€M) 21 17 47 76,1 47,1 FCF 1Q16 Headcount Cash cost of Same Factoring Underlying FCF reduction costs onerous projects as of Dec. 15* 1Q16 -53,2
Slide 14: Net Debt Reduction
RESULTS 1Q16 NET DEBT REDUCTION Net Debt (€M) 837 825 741 700 663 659 Net Debt Net Debt/EBITDA LTM (Times) 6,6 5,9 5,4 4,7 ND/ EBITDA LTM 3,2 2,5 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 14 Conference Call – Results 1Q16 | 14
Slide 15: Net Debt Bridge
RESULTS 1Q16 NET DEBT BRIDGE FCF = €47M 20 4 9 1 5 20 60 700 659 Net Debt 2015 Operating Cash Net Working Other Operating Capex Taxes Net interest Financial Net Debt 1Q16 Flow Capital Changes & Subsidies Investments & Non-CF items & Others 15 Conference Call – Results 1Q16 | 15
Slide 16: Debt Structure
RESULTS 1Q16 DEBT STRUCTURE 1Q16 2015 (€M) Total % of total Total % of total L/T Debt 973 93% 962 92% S/T Debt 75 7% 79 8% Gross Debt 1,048 100% 1,041 100% Cash & Others 388 n.m. 342 n.m. Net Debt 659 n.m. 700 n.m. Cost of Net Debt 3.1% 4.2% Gross Debt Maturity Profile Available Credit Facilities (€
Slide 17: NWC Improving Because of Clients' Collections
RESULTS 1Q16 NWC IMPROVING BECAUSE OF CLIENTS’ COLLECTIONS Net Working Capital (DoS) 30 20 9 +1 10 96 -9 87 -75 -77 -2 FY15 1Q16 Accounts Receivable Accounts Payable Inventory 17 Conference Call – Results 1Q16 | 17
Slide 18: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com