16 slides from Indra Sistemas, S.a. Class A's earnings presentation, Nov 5, 2015
Slide 1: Results 9M15
RESULTS 9M15 November 5th, 2015
Slide 2: Conference Call Details
CONFERENCE CALL DETAILS The Company will host a conference call for investors and analysts today at 18:30 (CET). Please find below conference call telephone numbers: Spain: +34 917900872 UK: +44 (0) 2077509908 USA: +1 8554027761 A recording of the conference call will be available for 30 days on the
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: Main Headlines
RESULTS 9M15 MAIN HEADLINES 1 • Revenue growth in 9M15 (ex-elections), 3Q15 revenues up +12% in local currency 2 • Decline in Order Intake in 9M15 (-5%) 3 • Greater visibility of personnel cost optimization execution; still very limited impact in 3Q results 4 • Positive recurrent EBIT margin in 3Q (
Slide 5: Revenues Growth (Ex-Elections); 3Q15 Up 12% in Local Currency
RESULTS 9M15 1 REVENUES GROWTH (EX-ELECTIONS); 3Q15 UP 12% IN LOCAL CURRENCY 9M15 3Q15 Sales in Local Currency 0% Sales in Local Currency +12% Sales Reported Growth -1% Sales Reported Growth +8% Sales Growth (ex. elections) +2% Sales Growth (ex. elections) +4% €M €M 47 24 26 64 2.086 2.069 660 610 9
Slide 6: Revenues by Region
RESULTS 9M15 1 REVENUES BY REGION Revenues (€M) Local Currency / Reported +0% / -1% 2.086 2.069 • 5 consecutive quarters of growth +11% / +11% • +31% growth in Public Sector Spain and +12% in Private Sector in 3Q15 Spain 38% 797 881 43% • 3Q15 growth in all vertical markets excluding Telecom&Media 5
Slide 7: Revenues by Vertical
RESULTS 9M15 1 REVENUES BY VERTICAL Spain Int. (LC) Revenues by Local Currency / Reported Vertical (€M) -0% / -1% 2.086 2.069 Security & 16% 339 +4% / +5% 355 17% Defence TECH Transport & 21% 431 +2% / +3% Traffic 444 21% Energy & 335 16% -1% / -1% 333 16% Industry Financial 17% 363 +8% / +5% Servic
Slide 8: Order Intake Slowing Down in 9M15
RESULTS 9M15 2 ORDER INTAKE SLOWING DOWN IN 9M15 Order Intake by Region Order Intake by Vertical Local Currency / Reported Local Currency / Reported €M -5% / -5% -5% / -5% 2.126 2.126 2.019 2.019 12% 258 +26% / +26% Security & 327 12% Defence Spain 39% 832 +16% / +16% 23% 479 TECH 966 48% -3% / -2%
Slide 9: Greater Visibility on Our Personnel Cost Optimization Plan
RESULTS 9M15 3 GREATER VISIBILITY ON OUR PERSONNEL COST OPTIMIZATION PLAN % Of completion SPAIN – up to 1.750 - Sep-Dec 15: ~ 55% 467* - 2016: ~ 45% Number of Employees LATAM – 1.700 1.400* 1.400 as of 31/10/2015 Provision of €160M accounted in 2015 2016 2017 2018 3Q15 as non-recurrent cost P&L €20M
Slide 10: And Headcount Decreasing
RESULTS 9M15 3 AND HEADCOUNT DECREASING Total 40.870 Headcount 39.130 39.155 38.995 37.931 21.461 21.746 21.893 21.496 20.969 Spain 16.710 Latam 14.388 14.081 13.723 13.084 1.776 1.788 1.818 1.814 1.775 EU/USA AMEA 1.493 1.510 1.565 1.415 1.576 3Q14 4Q14 1Q15 2Q15 3Q15 10 Conference Call – Results 9
Slide 11: Positive Recurrent EBIT Margin in 3Q
RESULTS 9M15 4 POSITIVE RECURRENT EBIT MARGIN IN 3Q Recurrent EBIT Margin 9M15 Recurrent EBIT Margin 3Q15 6,6% 7,7% 7,8% 10,1% 3,5% -0,1% Contribution Margin Overheads Recurrent EBIT Margin Contribution Margin Overheads Recurrent EBIT Margin 3Q15 3Q15 9M15 9M15 Quarterly Recurrent EBIT margin evolut
Slide 12: Net Debt Stabilizing in 3Q15 (Ex-Personnel Cash Cost)
RESULTS 9M15 5 NET DEBT STABILIZING IN 3Q15 (EX-PERSONNEL CASH COST) €M 837 Net Debt 825 828 Net Debt (Ex- Personnel Cash Cost) 741 726 663 52 FCF -1 FCF (Ex-Personnel -23 Cash Cost) (-€14M) -79 -85 3Q14 4Q14 1Q15 2Q15 3Q15 12 Conference Call – Results 9M15 | 12
Slide 13: Debt Structure
RESULTS 9M15 5 DEBT STRUCTURE 9M15 2014 Distribution of Gross Debt (€M) Total % of total Total % of total by currency L/T Debt 971 87% 826 86% Brazilian Others; 4% Real; S/T Debt 144 13% 131 14% 10% Gross Debt 1.115 100% 957 100% Cash & Others 278 n.m. 294 n.m. Net Debt 837 n.m. 663 n.m. Euro; 86% C
Slide 14: Net Debt Bridge
RESULTS 9M15 5 NET DEBT BRIDGE FCF = -187 €M 21 19 6 0 28 112 12 837 663 Net Debt 2014 Operating Cash Net Working Other Operating Capex Taxes Net interest, Financial Net Debt 9M15 Flow Capital Changes Subsidies & Investments Others & Non-CF items 14 Conference Call – Results 9M15 | 14
Slide 15: Net Working Capital Evolution
RESULTS 9M15 6 NET WORKING CAPITAL EVOLUTION Net Working Capital Reported (DoS) 64 61 16 -1 15 122 114 -8 -73 +5 -68 1H15 9M15 Accounts Receivable Accounts Payable Inventory 15 Conference Call – Results 9M15 | 15
Slide 16: Investor Relations
Investor Relations irindra@indra.es Avda. de Bruselas 35 28108 Alcobendas, Madrid Spain T +34 91 480 98 00 www.indracompany.com