22 slides from Indra Sistemas, S.a. Class A's earnings presentation, May 11, 2015
Slide 1: Results 1Q15
RESULTS 1Q15 indra May 11%, 2015
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS The Company will hold a conference call for investors and analysts today at 18:30 (CET). Please find below conference call telephone numbers: Spain: +34 91 789 5131 UK: +44 (0) 207 750 9908 USA: +1 866 388 1927 A recording of the conference call will be available for 30 days
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: Update and Key Messages
1Q15 RESULTS UPDATE AND KEY MESSAGES A set of relevant management decisions taken since we met in late February Appointments of a new independent Board member and new Secretary non Director and Counsel of the Board. A new organization launched to improve control, simplify and accelerate decisi
Slide 5: Main Headlines
1Q15 RESULTS MAIN HEADLINES Variation Local 1Q15 currency / 1Q14 reported 1 Revenues (€M) 702 (5%) / (4%) 728 Strong underlying growth (+5%) ex-seasonality Seasonality and overruns in two projects (Brazil 2 EBIT margin 0.5% (7.2 pp) 7.7% & Lithuania) accounting for 6.6 pp vs 1Q14 Recurrent (1)
Slide 6: Solid Revenues Growth Ex-Seasonality (+5%)
1Q15 RESULTS 1 SOLID REVENUES GROWTH EX-SEASONALITY (+5%) Sales Reported Growth -4% Sales Growth (ex. elections) +5% €M 728 30 702 (56) 1Q14 Elections Underlying 1Q15 33 | 6
Slide 7: Services Revenues Grew Low Single Digit in Local Currency
1Q15 RESULTS 1 SERVICES REVENUES GREW LOW SINGLE DIGIT IN LOCAL CURRENCY Revenues by Segment (€M) Book-to-Bill Local Currency / Reported 728 702 -5% / -4% 261 36% +2% / +3% 269 38% 1.54x 1,54x -8% / -7% 64% 467 433 62% 1.37x 1,37x 1.38x 1,38x 1,30x 1.30x 1Q14 1Q15 1Q14 1Q15 Solutions Services 33 | 7
Slide 8: Revenues Up in Spain for Three Quarters in a Row, AMEA Down on Seasonality
1Q15 RESULTS 1 REVENUES UP IN SPAIN FOR THREE QUARTERS IN A ROW, AMEA DOWN ON SEASONALITY Order intake (€M) Revenues (€M) Local Currency / Reported Local Currency / Reported Book-to-Bill -5% / -4% -12% / -11% 728 1,046 1.3x 702 934 282 +5% / +5% 43% 39% Spain 457 +1% / +1% 298 463 1.6x 27% 194 -1% /
Slide 9: Transport & Traffic and Financial Services Growing
1Q15 RESULTS 1 TRANSPORT & TRAFFIC AND FINANCIAL SERVICES GROWING Revenues by Local Currency / Reported Spain Int. (LC) Vertical (€M) 728 702 -5% / -4% Energy & Industry 16% 115 -2% / +0% 116 17% Financial Services 17% 125 +6% / +7% 133 19% Telecom & 12% 84 -14% / -13% Media 73 10% PPAA & 20% 145 -2
Slide 10: Recurrent EBIT Margin Impacted by Seasonality and Overruns in Brazil and Lithuania
1Q15 RESULTS 2 RECURRENT EBIT MARGIN IMPACTED BY SEASONALITY AND OVERRUNS IN BRAZIL AND LITHUANIA €M 56 Elections FFSS & PPAA Brazil Overruns Lithuania (5) 3 (48) 1Q14 Elections & Overruns in Others 1Q15 Brazil and Lithuania Contribution to the EBIT 7.7% -6.6pp -0.6pp 0.5% Margin (%) 33 | 10
Slide 11: Management Actions on Underperforming Businesses
1Q15 RESULTS 2 MANAGEMENT ACTIONS ON UNDERPERFORMING BUSINESSES Flagship project which combines for the first time both signaling & intelligent control system. It is opening new opportunities in the region Lithuania Overruns are due to changes in the original terms of the contract Execution pr
Slide 12: Margin Pressure Remains in Both Services and Solutions
1Q15 RESULTS 2 MARGIN PRESSURE REMAINS IN BOTH SERVICES AND SOLUTIONS, DRIVING RECURRENT EBIT MARGIN DOWN 1Q14 1Q15 1Q14 16.9% 9.0% 1Q15 Solutions 15.0% 1Q14 9.0% 8.5% 1Q15 11.7% 0.5% 8.9% Contribution Overheads Recurrent EBIT Margin 1Q15 Margin 1Q15 Services | 12
Slide 13: Free Cash Flow Bridge
1Q15 RESULTS 3 FREE CASH FLOW BRIDGE €M 21 Free Cash Flow Operating Cash Working Other CAPEX Taxes Others (1) Free Cash Flow 1Q14 Flow Capital operating 1Q15 changes (53) 38 4 0 (4) (79) (85) €28 M 2011-13 Remuneration Plan and Externalization of the top management pension fund (€40 M) Suppliers’ pa
Slide 14: Net Working Capital Increased in 5 Days vs Dec 2014
1Q15 RESULTS 4 NET WORKING CAPITAL INCREASED IN 5 DAYS VS DEC 2014 Equivalent Days of Sales (DoS) 81 86 29 28 -1 124 +5 129 -72 +1 -71 FY14 1Q15 Accounts Receivable Accounts Payable Inventory | 14
Slide 15: Net Debt Bridge
1Q15 RESULTS 5 NET DEBT BRIDGE FCF = -79 M€ 9.1 8.0 5.7 26.1 35.5 (0.7) (5.1) 741 663 Net Debt 2014 Operating Cash Net Working Other Operating Capex Taxes Net interest, Financial Net Debt 1T15 Flow Capital Changes Subsidies & Investments Others & Non-CF items | 15
Slide 16: Debt Structure
1Q15 RESULTS 5 DEBT STRUCTURE 1Q15 2014 (€M) Total % of total Total % of total L/T Debt 831 83% 826 86% S/T Debt 169 17% 131 14% Gross Debt 1,000 100% 957 100% Cash & Others 259 n.m. 294 n.m. Net Debt 741 n.m. 663 n.m. Cost of Net Debt 4.3% 4.5% Gross Debt Maturity Profile (1Q15) Available Credit Fa
Slide 17: Closing Remarks
1Q15 RESULTS CLOSING REMARKS Corporate management decisions already taken: • Changes in the Board • New Remuneration policy • New Organization Executing plan for underperforming projects in Brazil & Lithuania Moving forward with our Strategic Plan, to be presented in our Investor Day on July t
Slide 18: Annex: P&L
1Q15 RESULTS ANNEX: P&L 1Q15 1Q14 Variation €M €M €M % Revenues 702.5 728.4 (25.9) (4) Other income 33.2 15.6 17.6 113 Materials consumed and other operating expenses (332.0) (309.0) (23.0) 7 Personnel expenses (369.0) (363.9) (5.1) 1 Other results (0.4) (0.3) (0.0) NA Gross Operating Profit (recurr
Slide 19: Annex: Balance Sheet
1Q15 RESULTS ANNEX: BALANCE SHEET 1Q15 2014 Variation M€ M€ M€ Property, plant and equipment 124.4 127.3 (2.9) Intangible assets 290.7 289.8 0.9 Investments in associates and other investments 85.3 89.5 (4.2) Goodwill 581.0 583.3 (2.3) Deferred tax assets 128.0 116.0 11.9 Non-current assets 1,209.5
Slide 20: Annex: Cash Flow
1Q15 RESULTS ANNEX: CASH FLOW 1Q15 1Q14 Variation M€ M€ M€ Profit Before Taxes (15.5) 41.0 (56.5) Adjusted for: - Depreciations 30.9 14.6 16.3 - Provisions, capital grants and others (24.5) (6.9) (17.6) - Share of profit / (losses) of associates and other investments 1.7 0.3 1.4 - Net financial resu
Slide 21: Annex: Shareholders (May 2015)
1Q15 RESULTS ANNEX: SHAREHOLDERS (MAY 2015) % as of Estatal de Sociedad Share Capital Participaciones Industriales S.E.P.I. (*) 20.1% Others Corporación 51.5% 11.3% Financiera Alba (*) 10.7% 3.2% Fidelity Group 3.2% Taube Hodson Stonex Telefónica, S.A. (*) Board of Directors representation CNMV data
Slide 22: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com