Grupo Ezentis Sa · BME:EZE

Grupo Ezentis Sa — Investor Presentation (July 2014)

37 slides from Grupo Ezentis Sa's investor presentation, July 2014

  1. Slide 1: The last mile: our commitment

    Documento en progreso y revisión Sujeto a aprobación More value for the shareholder: our commitment The last mile: our commitment July 2014

  2. Slide 2: Agenda

    More value for the shareholder: Our commitment I. Overview of Ezentis Group II. 2014 – 2017 Strategic Plan A. Growth B. Efficiency and Quality C. Financial Optimization III. 2017 Key Figures IV. Appendix: Exchange Rates 2

  3. Slide 3: I. Overview of Ezentis Group

    More value for the shareholder: Our commitment

  4. Slide 4: Founded in 1959, focus on LatAm

    More value for the shareholder: Our commitment  Founded in 1959  Manages development and maintenance services related to infrastructure for utilities and telecommunications companies Spain  Focus on LatAm  Strategic partner of our clients, with key Mexico Jamaica positioning in the “last mile” P

  5. Slide 5: Restructuring process concluded: business focus LatAm

    More value for the shareholder: Our commitment Situation 2011Q3 Situation 2013  LatAm business (40%)  Focus on LatAm (91% of total sales), with multiannual recurrent contracts  High dispersion of activity  Low operating profitability in  Sectorial diversification based on profitability, with fo

  6. Slide 6: Sales, EBITDA and net bank debt evolution

    More value for the shareholder: Our commitment Sales LatAm Sales Millions of Euros Millions of Euros 180 189 +31,2% 186 Portfolio 407 +50,4% 133 191 203 108 158 2011 20121 2013PF2 2011 2012 2013PF1 EBITDA Group Net Bank Debt Millions of Euros Millions of Euros EBITDA NBD / 2,0% 1,4% 5,4% x12 x3 x2 M

  7. Slide 7: Capital stock and shareholders; stable management

    More value for the shareholder: Our commitment Capital Stock (2): 69.253.080,90 € Number of shares: 230.843.603 Free Float 61% INSTITUTIONAL INVESTORS 16% MERCHBANC ( ASSET MANAGEMENT) 3% >3% PREMAAT ( MUTUAL FUND) 2,9% 4% Agencia IDEA 2% Syndicate leaded by Manuel García-Durán (14%) Stable manageme

  8. Slide 8: II. 2014 – 2017 Strategic Plan

    More value for the shareholder: Our commitment 8

  9. Slide 9: More value for the shareholder: Our commitment

    More value for the shareholder: Our commitment

  10. Slide 10: Market opportunity strengthen our balance sheet

    More value for the shareholder: Our commitment Financial Figures Priorities 2012R 2013PF Final Portfolio  Balance and develop the business in Spain 197 407  Grow efficiently and increase productivity Sales 158 203  Take advantage of growth opportunities in LatAm LatAm (organic and inorganic) Sale

  11. Slide 11: LatAm geography, telecommunications and energy indicators

    More value for the shareholder: Our commitment GEOGRAPHY TELECOMMUNICATIONS Population (MM) Fixed Lines (MM) Mobile Lines (MM) +77% 548 +66% +94% 378 167 78 646 175 201 203 59 21 457 166 177 178 28 32 30 293 172 277 2012 2013 2014 27 26 180 187 GDP (Bill. USD PPP) 2012 2013 2014 2012 2013 2014 +66%

  12. Slide 12: Investment in telecommunications and energy infrastructure in LatAm

    More value for the shareholder: Our commitment Investment in Telecommunications and Energy Infrastructure in LatAm1,2 Billions of Euros % CAGR 56 35% 42 33 23 2010 2011 2012 2013E3 Positioning of EZENTIS in infrastructure management Planning Engineering Provisioning Construction Operation Maintenanc

  13. Slide 13: Fragmented service offering

    More value for the shareholder: Our commitment Estimation of the infrastructure services market for telecommunication companies and electricity distributors in LatAm Millions of Euros 9,875 Telecommunications Electricity 7,800 5,700 4,650 1,575 1,000 825 375 1,200 400 2,075 750 250 1,050 75 650 175

  14. Slide 14: 2013 Focus: Entry into Brazil

    More value for the shareholder: Our commitment Growth Sales Millions of Euros  Focus on internationalised, profitable and 2013 Plan 185.2 185.2 diversified business  2013 budget objectives met in constant terms 2013R 148.8 44,7 193.5 1,2 Currency effect Restructuring and abandoning unprofitable Fo

  15. Slide 15: Focusing on LatAm (91% of sales)

    More value for the shareholder: Our commitment  Focusing on LatAm (91% of sales)  Selection of businesses that create value for shareholders  Business development operations capabilities  Sector-based diversification focused on profitability  Management team for developing a project in the long

  16. Slide 16: 2014 – 2017 Strategic Plan Objectives and Pillars of Growth

    More value for the shareholder: Our commitment 2014 – 2017 Strategic Plan Objectives1 Pillars of Growth 2013PF 2017E % CAGR  Focus on LatAm Sales 203 656 34%  Focus on telecommunications and LatAm electricity in strategic accounts Sales 186 575 33%  Organic and inorganic growth aimed at profitabi

  17. Slide 17: 2017E figures and impact of Argentina

    More value for the shareholder: Our commitment Millions of Euros 2017E Figures (constant Impact of Argentina on 2017E Objectives exchange rate1) the Group total2 Sales 771.1 -114.8 656.3 EBITDA 81.0 -14.4 66.6 Net Profit 45.6 -6.5 39.1 Attributable 32.2 38.7 -6.5 Net Profit (1) Financial figures of

  18. Slide 18: Growth, Efficiency and Quality, Financial Optimization

    More value for the shareholder: Our commitment Growth Efficiency and Quality Financial Optimization  Portfolio based on existing and proven capabilities  Improvement in operational  Improve the balance sheet by productivity bringing in new capital  Differentiation model based on being strategic

  19. Slide 19: Growth: infrastructure and services

    More value for the shareholder: Our commitment Growth Infrastructure Service  Copper and fiber optic networks  Construction: deployment and improvement of existing elements Fixed-line and mobile  Base, infrastructure and transmission (technology migrations) telecommunications stations  Internal

  20. Slide 20: Differential value and competitive advantage

    More value for the shareholder: Our commitment Growth Differentiential Value Competitive advantage  Strategic partnership with our clients  Experience with large contracts  Maximization of end client satisfaction  Regional presence  High quality service implementation  Technological capabiliti

  21. Slide 21: Evolution of Ezentis Group sales 2013-2017

    More value for the shareholder: Our commitment Growth Evolution of Ezentis Group sales from 2013-2017 Millions of Euros x2.0 656 +34%2 Backlog / Sales 2013 Pro forma 326 +13%1 331 128 203 2013PF Organic growth Inorganic growth 2017E Backlog / X2,03 x1.8 – x2.2 Sales ratio (1) CAGR of the Group’s sal

  22. Slide 22: Acquisition principles and implementation factors

    More value for the shareholder: Our commitment Growth Principle Implementation factors  Prioritise targets with acquisition of majority interest  EBITDA margin for first year higher than 7.5% Selection of targets  Debt/EBITDA less than 2x  EV/EBITDA multiple between 5x-6x  Selection of talent a

  23. Slide 23: Inorganic pipeline

    More value for the shareholder: Our commitment Growth Inorganic Pipeline Priorities and figures of inorganic growth opportunities Market research Selection of Analysis of Execution targets targets  Geographical priorities Entire LatAm Current progress level2 in pipeline market execution over total

  24. Slide 24: Geographical and sector diversification

    More value for the shareholder: Our commitment Growth Geographical diversification Diversification by sector Projection of sales by country Projection of sales by sector Millions of Euros Millions of Euros 203 656 203 656 Brazil 28% 37% Brazil 51% Telecommu 55% -nications Chile 17% 13% Chile Spain 7

  25. Slide 25: Efficiency and quality: goals and operating factors

    More value for the shareholder: Our commitment Efficiency and quality Goals Operating factors  Productivity of each worker in operations  Increased business profitability  Rewards in contracts with clients  Increased customer satisfaction  Reduction of operating expenses  Optimisation of SG&A

  26. Slide 26: EBITDA margin improvement 2013 – 2017

    More value for the shareholder: Our commitment Efficiency and quality EBITDA margin: Improvement1 of EBITDA margin by item in 2013 – 2017 11.1 EBITDA 66.6 Millions of Euros EBITDA margin 2017E objective in 4.7 p.p. line with: 2.2%  Comparable companies: 9.9% 2.5%  Inorganic opportunities: 7.5 -11%

  27. Slide 27: Key figures of comparable listed companies

    More value for the shareholder: Our commitment Efficiency and quality Key figures of comparable listed companies Millions of Euros EBITDA Margin EBITDA CAGR Country 2013 Sales 2013 EBITDA (%) 08-13 (%) Quanta Services Inc 4,686 495 10.6% 11.3% EMCOR Group Inc 4,610 208 4.5% -3.9% Dycom Industries In

  28. Slide 28: Financial optimization

    More value for the shareholder: Our commitment Financial optimization  Improve the Group’s balance sheet with new incoming capital  Achieve a positive net operating income  Improve working capital management and profitability:  Reduce work certification times  Improve client collection manageme

  29. Slide 29: Key income statement figures

    More value for the shareholder: Our commitment Financial optimisation Key income statement figures Millions of Euros EBITDA Net profit Attributable net profit +93.9% +101.7% +39.1% 39.1 32.2 66.6 11.1 -40.4 -40.9 2013PF 2017E 2013 2017E 2013 2017E 5.4% 10.1% -20.0% 6.0% EBITDA / Sales Net profit / S

  30. Slide 30: Sales, EBITDA and attributable net profit by region

    More value for the shareholder: Our commitment Financial optimisation Millions of Euros Sales EBITDA Attributable net profit1 202.8 11.4 -40,9 Group 656.3 66.6 32,2 Latam (excl. 123.4 5.3 -35,0 -0,7 Latam (excl. ARG) ARG) and others 534.9 56.5 27,6 14.4 0.8 -6,9 Spain 78.5 5.8 3,2 65.0 5.4 1,0 Argen

  31. Slide 31: Cash flow, cash and net bank debt

    More value for the shareholder: Our commitment Financial optimisation Millions of Euros Cash flow Cash at year end 29.9 81.9 4.7 2013R 2017E Net bank debt 23.5 11.6 -61.0 2013R 2017E 2,1x1 -0,9x 2013R 2017E Net bank debt / EBITDA 31 (1) Ratio calculated based on 2013PF EBITDA figure

  32. Slide 32: III. 2017 Key Figures

    More value for the shareholder: Our commitment

  33. Slide 33: 2017 key figures and new markets 2014 - 2017

    More value for the shareholder: Our commitment Millions of Euros Sales 656 EBITDA Margin 10.1% Net Bank Debt -61 Cash flow at year-end 82 Current presence New markets 2014 - 2017 More value for the shareholder: Our commitment. 33

  34. Slide 34: IV. Appendix: Exchange Rates

    More value for the shareholder: Our commitment

  35. Slide 35: Exchange rates

    More value for the shareholder: Our commitment 2013 2014Q1 2014Q2 2014Q3 2014Q4 2015 2016 2017 Country Currency Rate / € Rate / € Rate / € Rate / € Rate / € Rate / € Rate / € Rate / € Argentina ARS 0.1154 0.0978 0.0861 0.0796 0.0742 0.0527 0.0401 0.0314 Chile CLP 0.0014 0.0014 0.0014 0.0014 0.0014 0

  36. Slide 36: Disclaimer

    More value for the shareholder: Our commitment This document has been prepared by EZENTIS solely for use at presentations held in connection with the Company’s Strategic Plan 2014-2017. This document may contains forecasts or estimates relating to the development of the Company’s business and result

  37. Slide 37: Contact

    More value for the shareholder: Our commitment Prim, 19 – 28004 Madrid, Spain T: +34 902 40 60 82 F: +34 913 605 994 E: info@ezentis.com www.ezentis.com

Grupo Ezentis — Investor Presentation (July 2014) on 6ix