Indra Sistemas, S.a. Class A · BME:IDR
Indra Sistemas, S.a. Class A — Indra — H1 2016 Earnings Presentation
18 slides from Indra Sistemas, S.a. Class A's earnings presentation, Jul 29, 2016
Slide 1: Results 1H16
RESULTS 1H16 July 29th, 2016
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS The Company will host a conference call for investors and analysts today at 11:00 (CET). Please find below conference call telephone numbers: Spain: +34 917 900 868 UK: +44 (0) 203 147 4600 USA: +1 866 388 1927 Access to the live event: http://event.onlineseminarsolutions.com
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 1H16 MAIN HEADLINES 1 • 2Q16 Revenues up +3% in local currency driven by T&D (+15% in local currency) 2 • Order Intake growth accelerates (+11% in 2Q16 versus +2.1% in 1Q16 in local currency) 3 • 1H16 EBITDA reached €100m in 1H16 vs €20m in 1H15 4 • 2Q16 Recurrent EBIT Margin 5.9% vs -4.0% i
Slide 5: 2Q16 Up +3% in Local Currency
Results 1H16 2Q16 UP +3% IN LOCAL CURRENCY 1H16 2Q16 Sales in Local Currency -1% Sales in Local Currency +3% Reported Sales Growth -5% Reported Sales Growth 0% €M €M 24 58 20 28 1.409 o/w America o/w America 1.332 707 704 €-32M €+1M o/w Brazil o/w Brazil €-28M €-13M 1H15 FX Impact Underlying growth
Slide 6: Revenues by Region
Results 1H16 REVENUES BY REGION Revenues (€M) Local Currency / Reported -1% / -5% 1.409 1.332 2Q16 Revenues Spain 44% 619 -3% / -3% • Strong performance of Defence & Security 600 45% (+42%), Energy & Industry (+6%) and Financial Services (+3%) America 29% • +1% up in local currency because of T&D 40
Slide 7: Revenues by Vertical
Results 1H16 REVENUES BY VERTICAL Revenues (€M) Local Currency / Reported Spain Int. (LC) +4% / +2% 562 574 Defence & Security 17% +8% / +8% 262 20% 243 T&D Transport & Traffic 319 +1% / -2% 311 23% 23% -5% / -11% 847 Energy & 758 Industry 226 16% -6% / -11% 15% 202 Financial IT Services 19% 264 -3%
Slide 8: Order Intake Up +6% in 1H16 in Local Currency
Results 1H16 ORDER INTAKE UP +6% IN 1H16 IN LOCAL CURRENCY Order Intake by Region (€M) Order Intake by Vertical (€M) Local Currency / Reported Local Currency / Reported +6% / +1% +6% / +1% 1.583 1.599 1.583 1.599 15% +53% / +53% 238 363 23% Defence & T&D Security Spain 46% 722 +7% / +7% 770 48% 24%
Slide 9: Two Quarters Left to Complete the Personnel Cost Optimization Plan
Results 1H16 TWO QUARTERS LEFT TO COMPLETE THE PERSONNEL COST OPTIMIZATION PLAN % Of completion SPAIN – up to 1,750 - Sep 15-June 16: ~ 80% 1,401* Number of Employees LATAM – 1,700 1,721* - 1,721 as of 31/12/2015 Provision of €160M accounted in 2015 2016 2017 2018 3Q15 as non-recurrent cost for
Slide 10: Headcount Decreasing
Results 1H16 HEADCOUNT DECREASING Total 38.995 Headcount 37.931 37.060 35.972 35.026 21.893 21.496 Spain 20.251 19.748 19.474 13.831 13.187 13.558 America 13.029 12.331 1,672 1,640 Europe 1,582 1,550 1,567 AMEA 1,599 1,608 1,669 1,645 1,654 2Q15 3Q15 4Q15 1Q16 2Q16 10 Conference Call – Results 1H16
Slide 11: Brazil Starting to Turn Around
Results 1H16 BRAZIL STARTING TO TURN AROUND (local currency) 1H15 1H16 Variation Order Intake 392M 436M +11% Revenues 489M 410M -16% EBIT* -118M -15M NA EBIT Margin* -24% -4% +20 pp • 4 out of the 7 onerous projects already closed/finished • Remaining onerous projects on track • Order intake reversi
Slide 12: Margin Improvement Because of Better Direct Margin and Efficiency Plans
Results 1H16 MARGIN IMPROVEMENT BECAUSE OF BETTER DIRECT MARGIN IN CURRENT PROJECTS AND EFFICIENCY PLANS Recurrent EBIT Margin 1H16 Contribution Margin by Divisions T&D IT 8,5% 11,0% 13,8% 17,4% 12,2% 5,3% 2,9% Contribution Margin Overheads Recurrent EBIT Margin 1H15 1H16 1H15 1H16 1H16 1H16 Quarter
Slide 13: Strong FCF Generation
Results 1H16 STRONG FCF GENERATION Quarterly FCF (€M) 137 52 47 2 -23 -79 -85 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Accumulated FCF LTM (€M) Underlying FCF 1H16 (€M) 163 107 33 26 76 48 -53 -50 -114 -136 FCF 1H16 Headcount reduction Cash cost of onerous Underlying FCF 1H16 1Q15 1H15 9M15 FY15 1Q16 1H16
Slide 14: Net Debt Reduction
Results 1H16 NET DEBT REDUCTION Net Debt (€M) 837 825 (176) (173) 741 700 (173) 663 (187) 659 659 Net Debt (187) (162) (187) (Factoring)* Net Debt/EBITDA LTM (Times) 6,6 5,9 5,4 4,7 3,2 3,1 2,5 ND/ EBITDA LTM 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 (*) Non-recourse factoring 14 Conference Call – Results
Slide 15: Net Debt Bridge
Results 1H16 NET DEBT BRIDGE FCF = €48M 9 11 8 23 13 83 22 700 659 Net Debt 2015 Operating Cash Net Working Other Operating Capex Taxes Net interest Financial Net Debt 1H16 Flow Capital Changes & Subsidies Investments & Non-CF items & Others 15 Conference Call – Results 1H16 | 15
Slide 16: Debt Structure
Results 1H16 DEBT STRUCTURE 1H16 2015 (€M) Total % of total Total % of total L/T Debt 958 93% 962 92% S/T Debt 72 7% 79 8% Gross Debt 1,031 100% 1,041 100% Cash & Others 371 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: Net Working Capital Evolution
Results 1H16 NET WORKING CAPITAL EVOLUTION Net Working Capital (DoS) – FY15 vs 1H16 Net Working Capital (DoS) – 1Q16 vs 1H16 30 24 24 20 9 +1 10 +0 10 10 96 -2 94 87 +7 94 5 2 -1 10 94 -81 -75 -6 -81 -77 -4 -81 FY15 1H16 1Q16 1H16 Accounts Receivable Accounts Payable Inventory 17 Conference Call – R
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