Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (January 2019)
29 slides from Orascom Construction's investor presentation, January 2019
Slide 1: Corporate Presentation
Grand Egyptian Museum – OC/BESIX JV Corporate Presentation January 2019
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in the MENA and USA ▪ Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shares traded on both exchanges are fungible ▪ Pro forma backlog of USD 6.1 billion including 50% share in BESIX and cons
Slide 3: Strong Track Record of Growth and International Expansion
Strong Track Record of Growth and International Expansion History of Creating Value for Shareholders Growing Family Construction Business Incubating Cement, Port & Fertilizer Lines Building an Investments Portfolio ▪ Roots trace back to 1950s in Egypt where first ▪ Created a top 10 global cement pro
Slide 4: A Wide Range of Capabilities Across Various Geographies
A Wide Range of Capabilities Across Various Geographies Orascom Construction Limited operates under three brands and owns 50% of BESIX Group Orascom Weitz ▪ Established in 1950 ▪ Established in 1855 ▪ Leading MENA industrial and infrastructure contractor ▪ Backlog: USD 519 million ▪ Backlog: USD 3.2
Slide 5: Geographic and Sector Diversification
Geographic and Sector Diversification Rest of World UAE 2.6% of Backlog 2.8% of Backlog United States 20.7% of Backlog Egypt 70.6% of Backlog Saudi Arabia 3.3% of Backlog Large geographic presence – each region with an established customer base Note: Backlog geographic segmentation is as of 30 Septe
Slide 6: Select Construction Track Record
Select Construction Track Record • Completed over 28,000 MW of power generation projects in the Middle East Power • Added over 12,500 MW of power generation capacity in Egypt over the past 3 years • Key Cairo Metro player since the late 1980s • Over 1,000km of rail projects in the Middle East (mainl
Slide 7: Consolidated Backlog Level
Consolidated Backlog Level Current backlog size and quality supports the Group’s revenue and profitability targets Focus on pursuing quality projects where the Group has a competitive edge and is confident in the source of funding Backlog excluding BESIX stood at USD 4.2 billion as of 30 September 2
Slide 8: Backlog Diversification
Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Other 2.6% Private USA 11.2% 20.7% Commercial 28.2% UAE 2.8% Saudi Arabia Industrial 3.3% 2.8% Infrastructure Egypt 69.0% 70.6% Public 88.8% Backlog by Brand Backlog by Currency Currency Exposure Contrack Watts 10.8% ▪
Slide 9: Investment in BESIX Group
Investment in BESIX Group Highlights ▪ An international Belgian multiservice company with a leading position in construction, property development and concessions founded in 1909 ▪ OC acquired 50% of BESIX in a joint leverage buyout in partnership with BESIX management in 2004 ‒ Held value as an inv
Slide 10: Pro Forma Snapshot Including BESIX
Pro Forma Snapshot Including BESIX ▪ Standalone backlog of EUR 3.2 billion and new awards of EUR 1.9 billion in 9M 2018 ▪ BESIX book value of USD 376.4 million in Orascom’s non current assets on the balance sheet ▪ Q3 2018 awards comprised of new projects in Europe, UAE and a hydropower plant in Cam
Slide 11: Construction Materials and Investments
Construction Materials and Investments Investments are benefitting from increased construction and industrial activity as well as operational synergies with Orascom and BESIX Company Ownership 9M 2018 Revenue Description ▪ Manufactures and supplies fabricated steel products in Egypt and North Africa
Slide 12: Proven Financing Capabilities
Proven Financing Capabilities ▪ Finance team previously secured and arranged debt for complex industrial and infrastructure projects worldwide across cement, fertilizer, power and infrastructure sectors, having historically raised ~USD 18.5 billion of financing and having strong relationships with E
Slide 13: Financial Section
Financial Section
Slide 14: Financial Highlights
Financial Highlights ▪ Adjusted net income excluding one-off U.S. legal provision increased 208.5% to USD 69.1 million in Q3 2018 and 104.6% to USD 151.6 million in 9M 2018 ▪ Consolidated adjusted EBITDA of USD 210.9 million and pro forma EBITDA including 50% in BESIX (excluding one-off legal provis
Slide 15: Summary Income Statement
Summary Income Statement USD Million Revenue by Geography – 9M 2018 9M 2018 9M 2017 Change Q3 2018 Q3 2017 Change Revenue 2,235.7 2,818.3 (20.7)% 728.8 805.4 (9.5)% USA MENA 1,462.8 1,597.1 (8.4)% 497.7 518.0 (3.9)% 28% USA 772.9 1,221.2 (36.7)% 231.1 287.4 (19.6)% Adjusted EBITDA* 210.9 165.6 27.4%
Slide 16: Net Cash Position as of 30 September 2018
Net Cash Position as of 30 September 2018 Net cash position of USD 38 million as of 30 September 2018 Evolution of Net Debt (USD Million) 807 Cash Total debt Net debt 575 507 466 439 420 434 410 407 369 357 303 328 319 261 282 31 Dec 13 1 Jan 15 31 Dec 15 31 Dec 16 31 Dec 17 31 Mar 18 30 June 18 30
Slide 17: Income Statement
Income Statement USD million 9M 2018 9M 2017 Q3 2018 Q3 2017 Results Commentary Revenue 2,235.7 2,818.3 728.8 805.4 Revenue: Cost of sales (1,962.5) (2,569.5) (632.4) (724.0) ▪ MENA comprised 68% and 65% of total revenue in Q3 and Gross profit 273.2 248.8 96.4 81.4 9M 2018, respectively, while the U
Slide 18: Balance Sheet
Balance Sheet USD million 30 Sep 2018 31 Dec 2017 Results Commentary ASSETS Non-current assets Non-current assets ▪ PPE of USD 159.6 million, with capex of USD 35.7 million in Property, plant and equipment 159.6 155.4 9M 2018 Goodwill 13.8 13.8 ▪ Investment in associates includes BESIX at an equity
Slide 19: Balance Sheet
Balance Sheet USD million 30 Sep 2018 31 Dec 2017 Results Commentary EQUITY Equity: Share capital 116.8 116.8 ▪ An amount of USD 280 million was converted from share Share premium 480.2 761.5 premium to retained earnings in May 2018 Reserves (334.1) (318.8) ▪ Following that, in combination with prof
Slide 20: Cash Flow Statement
Cash Flow Statement USD million 30 Sep 2018 30 Sep 2017 Results Commentary Cash flow used in operating activities: Net profit 119.3 82.3 ▪ Operating cash outflow of USD 64.3 million in 9M 2018 as a Adjustments for: result of changes in working capital items; flat operating cash flow in Q3 2018 Depre
Slide 21: Cash Flow Statement
Cash Flow Statement USD million 30 Sep 2018 30 Sep 2017 Results Commentary Cash flow used in investing activities: Investment in PPE (35.7) (24.6) ▪ Investments in PPE in of USD 35.7 million in 9M 2018 Proceeds from sale of PPE 3.4 7.9 primarily in MENA Cash flow from / (used in) investing activitie
Slide 22: Appendix
Appendix
Slide 23: Board of Directors
Board of Directors Chairman CEO Jérôme Guiraud Osama Bishai Non-Executive Chairman Executive Board Member Independent Non-Executive Mustafa Abdel- Johan Beerlandt Khaled Bichara Sami Haddad Wadood Non-Executive Board Member Non-Executive Board Member Non-Executive Board Member Non-Executive Board Me
Slide 24: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value ▪ Shareholder return: driven by strong longstanding leadership along with investment vision of principal shareholders ▪ Strategy as a new company to focus on infrastructure investments to provide steady cash flow and support long-term growth –
Slide 25: 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.70,000 people, with over 60 years of experience in MENA markets
Slide 26: Group Strategy Aimed at Delivering Top and Bottom Line Growth
Group Strategy Aimed at Delivering Top and Bottom Line Growth The Group has focused on creating shareholder value in the process of becoming a leading private sector contractor and an incubator of high-value industrial businesses Commitment instilled in management and founding shareholders to propel
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: 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 PLC (the “Company”). The information set out in this document shall not f
Slide 29: Contact Investor Relations
Contact Investor Relations: Hesham El Halaby hesham.elhalaby@orascom.com T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com
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