Koninklijke Bam Groep Nv · EURONEXT:BAMNB
Koninklijke Bam Groep Nv — Royal BAM Group — H1 2020 Earnings Presentation
29 slides from Koninklijke Bam Groep Nv's earnings presentation, Aug 20, 2020
Slide 1: First half 2020 results
First half 2020 results BAM reports first half year performance in line with 2 July trading update; expects positive adjusted result before tax for second half 2020 Royal BAM Group nv Amsterdam, 20 August 2020 Frans den Houter CFO / interim CEO
Slide 2: Disclaimer
Disclaimer • This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and B
Slide 3: Key points first half 2020
Key points first half 2020 First half impacted by Covid-19, BAM International, Cologne metro settlement, and underperformance of German construction and Dutch civil engineering Revenue Adjusted result before tax • Revenue declined by 10% in the first half year to €3.1bn, 2019 H1 mainly due to impact
Slide 4: Covid-19
Covid-19 Results considerably impacted by extraordinary circumstances caused by Covid-19 Operational efficiency * • Safe working is top priority 100 • Revenue declined by 19% in Q2 (versus Q2 2019) 80 • Largest disruption from Covid-19 in Ireland, Belgium and 60 UK; other businesses also impacted 40
Slide 5: Management actions in 2020 H1
Management actions in 2020 H1 Necessary steps taken to mitigate Covid-19 impact while continuing to de-risk the company and improve future predictability Financials: focus on costs, cash and liquidity • Cost cutting and capex reduction, only allow for business critical spend • Strong focus on cash c
Slide 6: Construction and Property
Construction and Property VO: personal story Royal BAM Group nv H1 2020 Results 100 Embankment, Salford City – BAM Construct UK 6
Slide 7: Construction and Property performance
Construction and Property performance Substantial impact of Covid-19, strong contribution from Dutch residential activities Analysis by 2020 H1 2019 H1 geography • Covid-19, all companies confronted with additional costs (x € million) Revenue Result Revenue Result • Revenue down 17%, mainly due to l
Slide 8: Civil engineering
Civil engineering Royal BAM Group nv H1 2020 Results Patton Bridge (185 metres), Ettelbrück (Luxembourg) – BAM Lux 8
Slide 9: Civil engineering performance
Civil engineering performance Substantial impact of Covid-19, resilient public infrastructure market Analysis by 2020 H1 2019 H1 geography • Covid-19, all companies confronted with additional costs (x € million) Revenue Result Revenue Result • Revenue -2%, substantial decline in Covid-19 impacted Ne
Slide 10: BAM PPP
BAM PPP Royal BAM Group nv H1 2020 Results Afsluitdijk artist’s impression, BAM PPP and BAM Infra Nederland 10
Slide 11: BAM PPP performance
BAM PPP performance BAM PPP Portfolio: 49 Strong operational portfolio performance 40 9 6 • Strong performance of existing operational Operational Under Construction Our Offices portfolio. All projects were fully operational throughout Covid-19 Glasgow • Partial transfer of 21 investments to PGGM, w
Slide 12: BAM PPP future cash flow
BAM PPP future cash flow High cash flow visibility and substantial unrealised cash value Sensitivity analysis - Unrealised value BAM PPP • PPP is an integral part of the Group, providing Discount Portfolio Invested Unrealised cash value stable project management and investment returns rate valuation
Slide 13: Financial review
Financial review Royal BAM Group nv H1 2020 Results Emergency Services Centre, Leverkusen – BAM Deutschland 13
Slide 14: Income statement
Income statement Net income reduced by non-cash impairments of goodwill and DTA (x € million) 2020 H1 2019 H1 • Increase Group interest charge due to draw down of Total business lines -127.8 -21.6 RCF (€400m) in March Group overhead 1.2 -0.8 Group interest charge -7.0 -4.8 • Restructuring (€1.4m) re
Slide 15: Cash flow
Cash flow Cash position increased by €429 million, driven by working capital and RCF (x € million) 2020 H1 2019 H1 Net cash result -17 38 • Business cash flow was €78m positive Investment (I)TFA -71 -84 • Total cash position increased by €429m, driven by Δ Trade working capital 23 -138 strong focus
Slide 16: Trade working capital
Trade working capital TWC efficiency further improved to -12.1% (2020 Q1: -10.3%) Trade working capital • TWC efficiency improvement by: (in € million and TWC as %) 0 0,0% ̶ Lower revenues -200 ̶ BAM’s cash preservation strategy -5,0% ̶ Strong focus on payment of receivables -400 ̶ Flexibility gover
Slide 17: Financial position
Financial position Cash position substantially higher; capital ratio lower at H1, expected to improve in H2 (x € million) 2020 H1 2019 FY 2019 H1 • Cash position increased to €1,283m, supported by: ̶ RCF (€400m), VAT and salary tax holiday (circa €110m), continuing focus on Cash position 1,283 854 4
Slide 18: Debt covenants
Debt covenants Waivers obtained per 30 June 2020 • Ratios impacted by Group performance in 2020 H1 • Waiver obtained for interest cover ratio and recourse leverage ratio by RCF lenders per 30 June ̶ Costs: The Group will pay a waiver fee of 25 basis points. The margin increases by 25 basis points fo
Slide 19: Net cash position
Net cash position Further increase of net cash position, despite Covid-19 700 • Net cash position graph shows: 500 ̶ Seasonal pattern 300 ̶ Longer-term trend Net Cash in mio ̶ Volatility throughout the year 100 • Net cash position first half year 2020 significantly above normal seasonal pattern, eve
Slide 20: Looking ahead
Looking ahead Royal BAM Group nv H1 2020 Results Thames Tideway Tunnel, London – BAM Nuttall and Wayss & Freytag Ingenieurbau 20
Slide 21: Order book and market trends
Order book and market trends Order book supported by civil engineering Construction and Property order book Market trends 2500 • Future impact Covid-19 currently uncertain 2000 • Interest rates are low, and solid demand for new 1500 homes 1000 500 • Investment sentiment private sector for new 0 comm
Slide 22: Outlook 2020
Outlook 2020 • Based on current market and Covid-19 conditions and the strong order book, BAM expects a positive adjusted result before tax for the second half of 2020. Royal BAM Group nv H1 2020 Results 22
Slide 23: Key points first half 2020
Key points first half 2020 First half impacted by Covid-19, BAM International, Cologne metro settlement, and underperformance of German construction and Dutch civil engineering Revenue Adjusted result before tax • Revenue declined by 10% in the first half year to €3.1bn, 2019 H1 mainly due to impact
Slide 24: Annexes
Annexes Group performance Property investments Net cash analysis Revenue sector/country Royal BAM Group nv H1 2020 Results 24
Slide 25: Group performance
Group performance Performance considerably impacted by Covid-19 in first half 2020 Analysis by Business Line 2020 H1 2019 H1 • Revenue decline of 10% (x € million) Revenue Result Revenue result • Adjusted result before tax -€133.6m, impacted by Construction and Property 1,700 -82.7 2,048 -13.3 ̶ Cov
Slide 26: Property investments
Property investments Net investments slightly declined Property development geographic breakdown (in € million, unless stated otherwise) 2020 H1 2019 (in %) Land and building rights 304 319 13% Property development 247 212 Total investments (a) 551 531 14% Non-recourse loans 50 54 60% Recourse loans
Slide 27: Net cash analysis
Net cash analysis (in € million, unless stated otherwise) 2020 H1 2019 FY Non-recourse PPP loans 38 43 Non-recourse project financing 55 58 Other project financing 59 48 Total ‘project related’ 152 149 Subordinated convertible bonds 122 121 RCF 400 0 Leases (Rou) 305 312 Other loans 1 1 Total intere
Slide 28: Revenue sector/country
Revenue sector/country Construction Civil PPP Total and Property engineering Netherlands 22% 18% 0% 40% United Kingdom 15% 12% 0% 27% Belgium/Luxembourg 6% 4% 0% 10% Germany/Swiss 7% 5% 0% 12% Ireland 7% 1% 0% 8% International 1% 2% - 3% Total 58% 42% 0% 100% Royal BAM Group nv Revenue per sector/co
Slide 29: Contact
Contact Michel Aupers Runnenburg 9 PO Box 20 +31 (0)30 659 89 88 3981 AZ Bunnik 3980 CA Bunnik ir@bam.com The Netherlands The Netherlands www.bam.com Royal BAM Group nv H1 2020 Results 29