Grupo Ezentis SA · BME:EZE
Grupo Ezentis SA — Ezentis — FY2019 Earnings Presentation
48 slides from Grupo Ezentis SA's earnings presentation, March 2020
Slide 1: 2019 Results and Perspectives Presentation
Working for the Future 2019 Results and Perspectives Presentation March 2020
Slide 2: Index
INDEX Ezentis Today 01 Working for the Future Business Model 10 Finance 14 Outlook 21 Conclusions 34 Stock Information 37 Annexes 40
Slide 3: Ezentis Today
EZEN T I S 01 TODA Y
Slide 4: 6 Key Drivers
02 EZENTIS TODAY 6 KEYS DRIVERS 60 years of experience and 32 listed on the stock market Deployment, Maintenance and Operation of telecommunications and energy infrastructures 8 Countries (Spain, Chile and Brazil with 87% of the business) Safety and Quality as principles of action Strong commitment
Slide 5: International Reference in Infrastructure Deployment, Operation and Maintenance
03 EZENTIS TODAY INTERNATIONAL REFERENCE IN INFRASTRUCTURE DEPLOYMENT, OPERATION AND MAINTENANCE Reference provider of More than 70% of the Reference in the industry for Strong Financial Performance deployment, operation activities are done by safety and quality based on 2014-2019 and maintenance of
Slide 6: Key Figures Revenue EBITDA
04 EZENTIS TODAY KEY FIGURES M€ HISTORY OF GROWTH REVENUE EBITDA € 455,2 M € 58,1 M X2 PEOPLE FLEET >12.000 >6.000 Vehicles INTERNATIONAL FOOTPRINT REVENUE BY SECTOR EUROPE LATAM
Slide 7: Quality and Efficiency in Operation and Maintenance of Infrastructures - 2019
05 EZENTIS TODAY QUALITY AND EFFICIENCY IN THE OPERATION AND MAINTENANCE OF INFRASTRUCTURES - 2019 LATAM IBERIAN PENNINSULA > 4.190.000 work orders attended in the telecommunications sector and >1.600.000 in the energy sector We operate and maintain >76.000 Telecommunications Towers, (Spain 26.000 a
Slide 8: Key Strategies for Sustainable Business Growth
06 EZENTIS TODAY EVOLUTION OF FINANCIAL PARAMETERS C TAC 12% STRATEGIC Increase in market share, REVENUE KEY STRATEGIES FOR SUSTAINABLE POSITIONING sector and customers A CC T % Sustained increase in revenue 17 BUSINESS with an accumulated annual GROWTH BACKLOG growth rate of 12% SUCCESS Capacity to
Slide 9: Corporate Culture
07 EZENTIS TODAY CORPORATE CULTURE PURPOSE VIEW V A L UES P R I N CIPLES Improve the society Become the reference Trust Safety quality of life with Transparency Quality infrastructure network Closeness innovative and provider Sustainability Environmental Respect sustainable solutions Profitability S
Slide 10: Culture of Sustainability
08 EZENTIS TODAY CULTURE OF SUSTAINABILITY RETURN AFTER PEOPLE ROTATION CONTRACTS YOUNG (indefinite) PERMISSION a 31/Dec/19 (voluntary) PEOPLE maternity / 12.455 14% 9.809 Up to 45 years paternity 76% 98% TRAINING PROVIDERS PURCHASES FLEET CDP safety and (local) (total to providers) renewal Carbon D
Slide 11: Ezentis Committed to Sustainability
09 EZENTIS TODAY EZENTIS COMMITTED TO SUSTAINABILITY Ezentis signed in 2019 the United Nations Global Compact Ezentis annually prepares a Sustainability Report following the GRI (Global Reporting Initiative) standards Ezentis participates in the annual CDP (Carbon Disclosure Project) questionnaire E
Slide 12: Business Model
EZENTIS BUSINESS 10 9B gies = Move
Slide 13: Focus on Deployment, O&M and Other Infrastructure Activities
11 BUSINESS MODEL FOCUS ON DEPLOYMENT, O&M AND OTHER INFRASTRUCTURE ACTIVITIES
Slide 14: Management Model Keys
12 BUSINESS MODEL MANAGEMENT MODEL KEYS D E N SITY O P E RATIONAL S Y N E R G I E S I N N OVATION 2014-2019: TACC Revenue 12% 2014-2019: incr. EBITDA margin 3 p.p. Concentration in 3 countries (87%) Reach the most profitable Promote best practices in all Digital technology critical size countries Pr
Slide 15: Diversified Customer Base
13 BUSINESS MODEL DIVERSIFIED CUSTOMER BASE Diversified client Average 3-5 years Multi- portfolio, with the main year contracts operators and utilities in the sector Renewal of >90% of Coverage in its strategic contracts main markets
Slide 16: Finance
EZENTIS FINANCE
Slide 17: Value Creation with a Solid Financial Model
15 FINANCE VALUE CREATION WITH A SOLID FINANCIAL MODEL Activity acquisition 4,4 EV/ EBITDA A C Q UISITIONS REVENUE M A R GIN CASH G E N ERATION V A R IATION GROWTH M A N AGEMENT I N D EBT Organic CAPEX reduced Operating Discipline Working Capital Corporative Debt / EBITDA conversion into EBITDA oper
Slide 18: Finance
16 FINANCE M€ M€ 17% TACC 12% TACC (1) M€ 21% TACC (1) (1) Without considering the effects of IFRS16
Slide 19: Proforma Results Post-Acquisition of the New External Plant Activity
17 FINANCE PROFORMA RESULTS POST-ACQUISITION OF THE NEW EXTERNAL PLANT ACTIVITY M€ M€ (1) (2) M€ (3) M€ 88% 11% 47% (1) Proforma EBITDA margin: 9,0% (2) Without considering the effects of IFRS16 (3) Operating cash: EBITDA adjusted by operating working capital changes
Slide 20: Strong Increase in Operating Cash Generation
18 FINANCE STRONG INCREASE IN OPERATING CASH GENERATION M€ +73%
Slide 21: €120M of Cash Generation in the Last 5 Years
19 FINANCE € 120 M OF CASH GENERATION IN THE LAST 5 YEARS Operating Org./Inorg. 2014 Cash Interests Capital Incr. Debt Var. 2019 Cash Cash Flow/WC Growth 2019 Accumulated 2014-2019
Slide 22: Efficient Financial Debt Management
20 FINANCE EFFICIENT FINANCIAL DEBT MANAGEMENT (1) -16,3 M € (1) Without considering the effect of IFRS16
Slide 23: Outlook
EZENTIS 21 oo Zu §=§=OUTLOOK
Slide 24: Growth Drivers
22 OUTLOOK GROWTH DRIVERS ENERGY OTHERS TELECOMMUNICATIONS 79% 19% 2% Operation and maintenance of Planning, engineering, Implementation and management of telecommunications network implementation and maintenance of multiservice networks (gas, water ...) infrastructure electricity systems
Slide 25: FTTH Market Growth
23 OUTLOOK FTTH MARKET GROWTH <15% penetration rate of FTTH (Fiber To The Home) in Europe with high growth potential Source: IDC Source: 2019 Global Data
Slide 26: Estimates of 5G Mobile Telephony - Europe
24 OUTLOOK Estimates of 5G Mobile Telephony - Europe 2019-2024
Slide 27: Strong Deployment for 5G Coverage
25 OUTLOOK Strong Deployment for 5G Coverage 4G 1x60 Antennas 5G 4G 5G Coverage Macro Cells Micro Cells Example Square Miles 1 1 Cell per Square Mile (City) 1 60 Fiber Miles Backhaul / Site 1-5 8 Fiber Miles / Square Mile 1-2 480 Source: Fiber Broadband Associations Technology requires infrastructur
Slide 28: Future Ezentis: Telecommunications Growth Potential
26 OUTLOOK TELECOMMUNICATIONS GROWTH POTENTIAL FUTURE EZENTIS EZENTIS TODAY 2019 Optical Fiber Deployment and > 4.190.000 Work Orders Attended O&M Maintenance 75,000 Sites 836 Sites Deployments 5G deployment and O&M Deployed optical fiber to cover 835.000 Building Units Deployed 10.500 Km of optical
Slide 29: Energy: Weight of Electricity over Total Energy Demand in Europe
27 OUTLOOK ENERGY Weight of electricity over total energy demand in Europe € 1.115 B of average annual investment between 2021 and 2030 to achieve the energy and climate targets set by the EU Source: European Commision 32% of the weight of electrical energy over the total energy demand in the EU est
Slide 30: The Spanish Market Offers a Great Opportunity
28 OUTLOOK THE SPANISH MARKET OFFERS A GREAT OPPORTUNITY CLIMATE CHANGE 10-YEAR ELECTRIFICATION CLIMATE EMERGENCY CONTAINMENT PLAN Necessary need to PNIEC (National Integrated Investment in electricity networks € 5.800 M/year decarbonize to avoid the Energy and Climate Plan) Investment in renewable
Slide 31: Energy Source Consumption Estimates in Spain
29 OUTLOOK Energy Source Consumption Estimates in Spain 2020-2030 Source: PNIEC
Slide 32: Ezentis Accompanies the Utilities Business Model
30 OUTLOOK EZENTIS ACCOMPANIES THE UTILITIES BUSINESS MODEL CUSTOMERS MULTI-SERVICE BUSINESS MODEL MULTI-SERVICE BUSINESS MODEL TELECOMMUNICATIONS DISTRIBUTION NETWORKS WATER TELE ENERGY NETWORK OTHERS COMMUNICATIONS DISTRIB. GAS WATER GAS RENOWABLE EVOLUTION TO MULTISERVICES The electric and oil co
Slide 33: Future Ezentis: Energy Sector Growth Potential
31 OUTLOOK STRONG POTENTIAL GROWTH BASED ON THE DEVELOPMENT OF THE ENERGY SECTOR EZENTIS TODAY FUTURE EZENTIS >1.600.000 Work Orders Being a relevant agent in the deployment, Attended operation and maintenance of energy assets O&M and deployment of and in the strong electrification process in electr
Slide 34: Value Creation
32 OUTLOOK VALUE CREATION Strategic Acquisitions Double digit Sustained ROIC Cash Flow EBITDA Generation Increasing Margin double-digit Improvement TACC revenue 2014-2019 TACC Revenue12% TACC EBITDA 21% EBITDA'19 Margin 8,6%
Slide 35: Key Objectives for 2022-2023
33 OUTLOOK KEY OBJECTIVES FOR 2022-2023 BASED ON STRONG STRATEGIC POSITIONING The strategic positioning of Ezentis allows us to take DIVERSIFICATION FINANCIAL advantage of the GROWTH opportunities in the GEOGRAPHY EBITDA MARGIN Telecommunications and Energy sectors, and allows us 65% - 70% 8,0% - 9%
Slide 36: Conclusions
EZENTIS 34 wm aiaiis CONCLUSIONS
Slide 37: Key Future Strategies for Sustainable and Profitable Growth
35 CONSLUIONS KEY FUTURE STRATEGIES FOR SUSTAINABLE AND PROFITABLE GROWTH DIVERSIFICATION PLAN BY DIVERSIFICATION PLAN BY BUSINESS MODEL FINANCIAL MODEL SECTORS GEOGRAPHY Multi-Sector Supplier TELECOMMUNICATIONS focused on the Deployment, Operation and Maintenance Solid financial model that 79% 65%
Slide 38: Conclusions: Strategic Lines
36 CONCLUSIONS STRATEGIC LINES Growth Safety, Quality and Efficiency Financial Optimization COMPETITIVE Selective Acquisition Policy according to our ADVANTAGES strategic objectives Know How in Big Contracts Geographic Concentration Technological Capabilities Multi-Sector Supplier Skilled Labor GROW
Slide 39: Stock Information
EZENTIS . N. | STOCK 37 wm aia INFORMATION
Slide 40: Capitalization Evolution
38 STOCK INFORMATION CAPITALIZATION EVOLUTION Capitalization 06/20/18: € 253 M Capitalization 10/25/13: € 240 M 18 EBITDA: € 36,1 M 13 EBITDA: € 4,4 M 18 Debt: € 107 M 13 Debt: € 23 M EV/EBITDA: 10x EV/EBITDA: 60x Capitalization 02/24/20: € 116 M 19 prof EBITDA: € 44,1 M 19 Debt: € 120 M EV/EBITDA:
Slide 41: Shareholder Structure
39 STOCK INFORMATION SHAREHOLDER STRUCTURE ERICSSON 9,6% SANTANDER A.M 5,0% ERALAN INV. 4,2% OTHERS 52,6% OTHER INSTITUTIONALS 28,6% Source: CNMV
Slide 42: Annexes
EZENTIS ANNEXES
Slide 43: Annex: P&L Account
41 ANEXES ANNEX: P&L ACCOUNT (1) (1) Income statement for fiscal year 2019 considers certain contracts of Argentine subsidiaries of the Group as discontinued operations (IFRS 5), as well as the income statement of CYS and Thaumat
Slide 44: Annex: Consolidated Cash Flow Statement
42 ANEXES ANNEX: CONSOLIDATED CASH FLOW STATEMENT (1) Without considering the effect of IFRS 16 (2) The changes of “financial debt” and the “payments and collections of interest” are adjusted by the variation of amortized cost and the effect of IFRS9 (3) Includes cash, other equivalent liquid assets
Slide 45: Annex: Consolidated Balance
43 ANEXES ANNEX: CONSOLIDATED BALANCE
Slide 46: Annex: Cumulative Income and EBITDA Analysis vs 2018
44 ANEXES ANNEX: CUMULATIVE INCOME AND EBITDA ANALYSIS VS 2018 (1) It includes the impact of the business downsize, the currency effect, the effect of the application of IFRS 16 and the effect of hyperinflation
Slide 47: Legal Warning
45 ANEXES LEGAL WARNING This document has been prepared by EZENTIS, only for use during the Presentation of RESULTS AND PERSPECTIVES 2019 and for institutional and professional investors of the same sector. Consequently, it may not be disclosed or made public or used by any other natural or legal pe
Slide 48: Working For The Future
Working For The Future investor.relations@ezentis.com accionistas@ezentis.com www.ezentis.com Linkedin Ezentis App Ezentis Investor Relations App Ezentis Investor Relations para iOS para Android