Drake & Scull International (P J S C) · DFM:DSI
Drake & Scull International (P J S C) — Drake & Scull International — Q1 2014 Earnings Presentation
54 slides from Drake & Scull International (P J S C)'s earnings presentation, Jul 2, 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 • Trend Analysis 33 • Strategy & Tomorrow 44 People. Innovation. Passion 3
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Slide 24: Financial Highlights
People. Innovation. Passion 24
Slide 25: Table of Contents
Table of Contents • Financial Overview 26 • YoY Comparison (Revenues, Gross Margin, EBITDA, EPS) 27 • Revenues Analysis 28 • Project Awards 29 • Receivables & Retention 30 • Backlog 31 • Ratio Analysis 32 People. Innovation. Passion 25 25
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 (Q1 2013 Vs Q1 2014)
Year-on-Year Comparison (Q1 2013 Vs Q1 2014) Q1 2014 Q1 2013 Earnings Per Share 120 130 0.025 98 90 0.018 63 46 Q1 2013 Q1 2014 Gross Margin EBITDA Net Margin Q1 2014 Q1 2013 Revenues 1,251.9 1,226.6 Gross Margin 119.9 130.4 Gross Profit % 9.6% 10.6% EBITDA 89.9 98.0 EBITDA % 7.2% 8.0% Net Margin be
Slide 28: Q1 2014 – Revenues Distribution by Geography
Q1 2014 – Revenues Distribution by Geography 700 665 60% Q1 2014 Revenues by Geography 53% 600 50% 500 40% 400 30% 300 221 20% 200 18% 82 10% 100 68 7% 46 5% 40 30 35 33 21 4% 11 2% 2% 3% 3% 1% 3% - 0% KSA U.A.E. Germany Kuwait Oman Qatar Egypt Iraq Algeria Jordan Others Q1 2014 Revenues % of the To
Slide 29: Project Awards (FY 2014 Q1 – Q2 YTD)
Project Awards ( FY 2014 Q1 – Q2 YTD) 4000 3392 3500 Engineering , Construction, Waste Rail , 1% 17% 3000 Awards Breakdown by Area 11% Water, 6% Engineering 2500 2200 Waste Water 2000 Oil&Gas 1500 Construction Oil&Gas, 1000 65% Rail 520 500 328 128 166 50 0 UAE KSA Kuwait Egypt Europe India Total Pr
Slide 30: Receivables & Retention
Receivables & Retention ( Dec 31st 2013 - March 31st 2014) Total Contract Receivables & Retention 1,800 - (0.0) 1,779 1,750 (0.0) (0.0) 1,700 (0.0) Trade receivables & retention 1,643 (0.1) 1,650 % Change (0.1) (0.1) 1,600 (0.1) 1,550 (0.1) Q4 2013 Q1 2014 • All Figures in AED Billion • The Key high
Slide 31: Backlog as of 31st March 2014 AED 12.2 BN
Backlog as of 31st March 2014 AED 12.2 BN Backlog Backlog Business Stream Subsidiary (AED Million) O&G DSI Abu Dhabi 967 PR DSI RAIL AED 193 AED 728 AED 35 DSIC Egypt 293 2% 6% 0% DSI KSA 1,350 DSI Dubai 391 DSE DSI Kuwait 310 AED 5,229 DSI Oman 33 CIVIL 43% DSI Qatar 796 AED 6,010 DSE DSI Thailand
Slide 32: Ratio Analysis
Ratio Analysis ( Dec 31st 2013 - March 31st 2014) Dec-13 Mar-14 Benchmark Liquidity Ratio: Current Ratio 1:1.3 1:1.2 1:1.5 Efficiency Ratio: Days Sales Outstanding (DSO) 123.9 124.7 120 days Days Payable Outstanding (DPO) 214.2 251.5 180 days Leverage Ratio: Net Debt to EBITDA 3.1 2.7 3 x maximum De
Slide 33: Trend Analysis
People. Innovation. Passion 33
Slide 34: Table of Contents
Table of Contents • Revenues 35 • EBITDA CAGR 36 • Net Profit CAGR 37 • Debt / Equity and Current Ratio 38 • Operating Cash Flow 40 • Receivables and Retention 41 • Backlog 42 • Project Awards 43 People. Innovation. Passion 34
Slide 35: 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 35
Slide 36: 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 36
Slide 37: 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 37
Slide 38: 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 39: 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 39
Slide 40: 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 40
Slide 41: 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 42: 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 42
Slide 43: 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 43
Slide 44: Strategy & Tomorrow
People. Innovation. Passion 44
Slide 45: Table of Contents
Table of Contents • MENA Outlook 46 • Key Highlights 50 • Growth Strategy 52 People. Innovation. Passion 45
Slide 46: MENA – 2018e Outlook
MENA – 2018 e Outlook* Outlook: Planned project pipeline of $820bn over the next five years. People. Innovation. Passion 46
Slide 47: MENA – 2018e Outlook
MENA – 2018 e Outlook* Sectors: Construction and infrastructure drive 75% of the planned project pipeline People. Innovation. Passion 47
Slide 48: MENA – 2018e Outlook
MENA – 2018 e Outlook* People. Innovation. Passion 48
Slide 49: GCC Vs. Mena Project Market 2017e
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 49
Slide 50: 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 51: Key Highlights
Key Highlights Strong DSI secured AED 1.1 billion worth of work across MENA, India & Europe in Q1 2014 Momentum Operational Operating Profit for Q1 2014 stands at AED 89 million with sustainable gross margins at approximately 10% Leverage Continued DSI consolidates GCC & MENA presence and secures AE
Slide 52: 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 53: 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 54: People. Innovation. Passion
People. Innovation. Passion
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