18 slides from Indra Sistemas, S.a. Class A's earnings presentation, Nov 7, 2018
Slide 1: November 7th, 2018
November 7th, 2018
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS LIVE EVENT: The Company will host a conference call for investors and analysts today at 18:30 (Spanish time). Please find below conference call telephone numbers: Spain: +34 911140101 France: +33 170710159 UK:+44 2071943759 US: +1 6467224916 Access code: 97801313# Access to t
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: 9M18 key highlights
1 • 9M18 order intake kept growing above revenues (+8% vs +6% in local currency). 2 • Backlog grew by +9% and surpassed €4bn. 3 • Revenues up +6% (local currency). Transport revenues up +42% in 3Q18. 4 • 9M18 EBITDA totaled €183m (+7% vs 9M17). EBITDA Margin improved to 8.4% in 9M18 and to 9.4% in 3
Slide 5: 9M18 and 3Q18 Sales Growth
9M18 Sales Growth 3Q18 Sales Growth Reported +3% Reported -4% Local Currency +6% Local Currency -1% €m €m 5
Slide 6: Order Intake and Revenues
Order Intake (€m) Revenues (€m) Local Currency / Reported Local Currency / Reported +6% / +3% 2,174 +8% / +5% 2,466 2,116 2,351 Spain +13% 46% +15% 1,233 50% 47% 985 1,112 51% 1,074 America 22% 467 528 +16% / +4% 547 22% 22% +4% / -8% 431 21% Europe 19% 446 -18% / -18% 366 15% 17% 359 +2% / +1% 363
Slide 7: EBIT and Margin
9M18 EBIT and Margin 3Q18 EBIT and Margin 5,8% -0,5pp 6,3% 5,3% -0,3pp 6,0% 124 -6,9% 115 46 -8,2% 42 1.2pp 1.9pp impact impact 9M17 EBIT (€m) 9M18 EBIT (€m) 3Q17 EBIT (€m) 3Q18 EBIT (€m) 9M18 EBIT and Margin excluding the 3Q18 EBIT and Margin excluding the impacts of Tecnocom rest. and CNMC fine im
Slide 8: T&D Revenues and Order Intake
T&D 9M18 Revenues (€m) Local Currency / Reported 9M18 Order Intake (€m) 811 -3 % / -4% 777 Local Currency / Reported 408 -4% / -5% 902 389 +23% / +21% 50% 745 50% 354 39% 403 -2% / -4% -0% / -1% 388 48% 359 50% 50% 9M17 9M18 547 386 +44% / +42% 61% 3Q18 Revenues (€m) 52% Local Currency / Reported 9M
Slide 9: T&D EBIT and Margin
T&D 9M18 EBIT (€m) 3Q18 EBIT (€m) 106 -6.0% 99 36 -9.7% 33 9M17 9M18 3Q17 3Q18 9M18 EBIT Margin (%) 3Q18 EBIT Margin (%) 13.0% -0.2pp 12.8% 14.0% -1.4pp 12.6% 9M17 9M18 3Q17 3Q18 9
Slide 10: Minsait Revenues and Order Intake
MINSAIT (IT) 9M18 Revenues (€m) Local Currency / Reported 1,396 9M18 Order Intake (€m) 1,305 +11% / +7% 417 30% Local Currency / Reported 26% 341 +27% / +22% 1,607 +1% / -3% 1,564 33% 437 +14% / +10% 481 34% 27% 427 +25% / +19% 507 32% 27% 355 -7% / -10% 321 23% 32% 514 +21% / +17% 13% 171 +10% / +4
Slide 11: Minsait Operating Margin and EBIT
MINSAIT (IT) 9M18 Operating Margin1 3Q18 Operating Margin1 + + 64 32 38 19 9M17 Op. Margin (€m) 9M18 Op. Margin (€m) 3Q17 Op. Margin (€m) 3Q18 Op.Margin (€m) 9M18 EBIT and Margin 3Q18 EBIT and Margin 1.4% 2.1% +0.1pp 2.2% -0.3pp 1.1% 18 16 10 10 9M17 EBIT (€m) 9M18 EBIT (€m) 3Q17 EBIT (€m) 3Q18 EBIT
Slide 12: Brazil Plan IT
MINSAIT (IT) Lean & Apply full end-to-end Lean approach, fostering a culture of continuous 1 Automation improvement and placing automation at the core of our operations BRAZIL 2 Delayering Reduce management layers to increase agility and accountability while maximising efficiency (local currency) 9M
Slide 13: Quarterly FCF
Quarterly FCF (€m) FY15 €-50m FY16 €184m FY17 €186m 9M18 €-46m 137 140 142 75 47 15 2 -5 -5 -6 -23 -26 -55 -79 -85 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Accumulated FCF LTM (€m) OPERATING FCF BEFORE WC (€m) 163 181 184 184 186 185 163.4 157 153.8 6% 132 104 96 76
Slide 14: Net Debt Bridge – Cash Flow
Includes ACS acquisition Net Debt Bridge – Cash Flow (€m) (c.€40m) FCF = €-46m 14
Slide 15: Net Working Capital (DoS)
Net Working Capital (DoS) -1 3 10 +21 -10 31 +9 40 71 -30 41 -4 37 -82 -82 -74 +0 +8 2017 2017 Restated* 9M18 *2017 restated for IFRS 15 and IFRS 9 15
Slide 16: Net Debt and Net Debt/EBITDA
837 Net Debt (€m) (173) 700 666 680 686 Net Debt (187) (187) (187) (187) (Factoring)(1) 3Q15 4Q15 3Q16 3Q17 3Q18 6,6x Net Debt/EBITDA LTM (Times) 5,4x 3,1x 2,5x 2,5x ND/ EBITDA LTM ND/ EBITDA LTM 1.4x Ex Acquisitions Payments 3Q15 4Q15 3Q16 3Q17 3Q18 (1) Non-recourse factoring 16
Slide 17: Gross and Net Debt Structure
Gross and Net Debt Structure €1,543m €858m Corporate 353 Bonds 671 Convertible Bonds 402 R+D Loans 104 187 €686m 9M18 % total 2017 % total Bank Factoring Loans L/T Debt 1,338 87% 1,016 79% 604 686 S/T Debt 205 13% 271 21% EIB1 Loans Gross Debt 1,543 100% 1,287 100% 80 Cost of Gross Debt 2.1% 2.2% Gr
Slide 18: Investor Relations
indra At the core Investor Relations irindra@indra.es www.indracompany.com