Orascom Construction Plc · EGX:ORAS

Orascom Construction — FY2016 Earnings Presentation

19 slides from Orascom Construction's earnings presentation, Apr 27, 2017

  1. Slide 1: FY 2016 Results Presentation

    FY 2016 Results Presentation 27 April 2017

  2. Slide 2: Table of Contents

    Table of Contents Section Page Highlights 3 Summary Financials 4 Net Debt Position 5 Backlog Evolution and Segmentation 6 BESIX Group 9 Construction Materials and Industrial Property Portfolio 11 Financial Statements 12 2

  3. Slide 3: Financial Highlights

    Financial Highlights  FY 2016 earnings emphasize the health of the Group’s long-term businesses ‒ Main focus in 2016 was on operations ‒ Capitalized on backlog quality and size to focus on cost reduction and bottom line  Substantial backlog size and mix that fully support the Group’s revenue and p

  4. Slide 4: Summary Financials: Strong Performance in MENA and BESIX

    Summary Financials: Strong Performance in MENA and BESIX Summary Income Statement USD million FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Revenue 4,033.1 3,882.4 3.9% 1,074.0 862.8 24.5% MENA 2,123.7 2,030.2 4.6% 632.7 560.1 13.0% USA 1,909.4 1,852.2 3.1% 441.3 302.7 45.8% EBITDA 99.0 (302.4) 132.

  5. Slide 5: Net Cash Position as of 31 December 2016

    Net Cash Position as of 31 December 2016 Net cash position of USD 204.1 million as of 31 December 2016 Evolution of Net Debt Pre-Demerger Post-Demerger $796 $807 $589 $575 $571 $519 $507 $448 $466 $439 $467 $428 $420 $369 $380 $272 $283 $303 31 Dec 11 31 Dec 12 31 Dec 13 1 Jan 15 31 Dec 15 31 Mar 16

  6. Slide 6: Healthy Consolidated Backlog Level

    Healthy Consolidated Backlog Level Current backlog size and quality fully 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 Growing US backlog to complement MENA operations and pr

  7. Slide 7: Backlog Diversification

    Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client OCI N.V. USA (OCI N.V.) Commercial 8.8% 8.8% 16.8% Private 20.2% USA 26.6% Industrial Egypt 12.7% 52.7% Other Infrastructure Public 4.8% 70.4% 71.0% Algeria 3.0% Saudi Arabia 4.1% Backlog by Brand Backlog by Currency Cu

  8. Slide 8: Backlog Evolution

    Backlog Evolution Backlog by Geography Backlog by Sector $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $5.3bn $3.3bn $4.9bn $3.8bn $5.8bn $6.7bn $5.3bn 0.2 1.1 0.3 0.6 2.5 0.3 1.4 0.9 0.9 0.7 2.4 0.1 1.9 1.9 0.7 0.3 0.7 0.6 1.4 1.7 0.2 0.5 0.7 1.4 0.2 0.2 0.3 1.1 0.2 0.6 0.1 0.1 1.2 4.2 0.6 3.7 0.8 3.2 3.0 2.8

  9. Slide 9: BESIX: Resilient Turnaround in 2016

    BESIX: Resilient Turnaround in 2016  Recorded strongest ever set of net results  Net income contribution to Orascom of USD 64.2 million in FY 2016 compared to negative USD 0.4 million in FY 2015  BESIX book value of USD 346.6 million in Orascom’s non current assets on the balance sheet  Orascom

  10. Slide 10: BESIX: Diversified Backlog in MENA and Europe

    BESIX: Diversified Backlog in MENA and Europe  Standalone backlog of EUR 2.9 billion and new awards of EUR 2.1 billion in FY 2016 ‒ Decline compared to last year due to withdrawal from projects in Saudi Arabia ‒ Already identified additional projects in MENA and Europe to be included in 2017  Rece

  11. Slide 11: Complementary Construction Materials and Property Management Portfolio

    Complementary Construction Materials and Property Management Portfolio Subsidiaries currently benefitting from increased construction and industrial activity Operational synergies with Orascom and BESIX  Ownership: 100%  Ownership: 100%  Ownership: 100%  Ownership: 60.5%  FY 2016 revenue: USD 9

  12. Slide 12: Financial Statements

    Financial Statements

  13. Slide 13: Income Statement

    Income Statement USD million FY 2016 FY 2015 Q4 2016 Q4 2015 Results Commentary Revenue 4,033.1 3,882.4 1,074.0 862.9 Revenue: Cost of sales (3,841.0) (4,093.7) (1,100.2) (1,305.5)  Revenue increased 3.9% y-o-y in FY 2016 and 24.5% in Q4 2016 Gross profit 192.1 (211.3) (26.2) (442.6)  MENA account

  14. Slide 14: Balance Sheet

    Balance Sheet USD million 31 Dec 2016 31 Dec 2015 Results Commentary ASSETS Non-current assets Non-current assets  PPE of USD 158.4 million, with net additions of USD 91.7 million Property, plant and equipment 158.4 280.2 in FY 2016 Goodwill 13.8 13.8  Decrease in PPE compared to Dec 2015 is prima

  15. Slide 15: Balance Sheet

    Balance Sheet USD million 31 Dec 2016 31 Dec 2015 Results Commentary EQUITY Equity Share capital 117.8 118.0  Total equity declined by USD 258.1 million in 2016, primarily Share premium 768.8 772.8 driven by the effect of currency translations on the reserve and Reserves (348.4) (81.2) investment b

  16. Slide 16: Cash Flow Statement

    Cash Flow Statement USD million 31 Dec 2016 31 Dec 2015 Results Commentary Net profit 53.0 (334.4) Cash flow from operating activities:  Operating cash flow increased 27% y-o-y to USD 256.3 million in Adjustments for: FY 2016 compared to USD 201.2 million in FY 2015 Depreciation 55.0 53.2  Cash fl

  17. Slide 17: Cash Flow Statement

    Cash Flow Statement USD million 31 Dec 2016 31 Dec 2015 Results Commentary Cash flow used investing activities: Investment in subsidiary, net of cash acquired - (2.7)  Cash flow used in investment activities in-line with previous year Investment in PPE (91.7) (88.4)  Cash outflow mainly driven by

  18. Slide 18: 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 Limited (the “Company”). The information set out in this document shall n

  19. Slide 19: www.orascom.com

    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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