Algemene Vergadering van Aandeelhouders. Rotterdam, 28 juni 2013

Transcription

1 Algemene Vergadering van Aandeelhouders Rotterdam, 28 juni 2013

2 Agenda 1. Opening 2. Recente gebeurtenissen 3. Jaarverslag Samenstelling Raad van Bestuur 5. Samenstelling Raad van Commissarissen 6. Bezoldigingsbeleid Raad van Bestuur 7. Claimemissie en statutenwijziging 8. Machtiging uitgifte cumulatief preferente financieringsaandelen 9. Rondvraag 2

3 2. Recente gebeurtenissen Verslag over de gebeurtenissen en bevindingen bij Imtech zoals die uit de onderzoeken zijn gebleken 3

4 Investigations finalised Several (forensic) investigations were conducted by independent advisors including Ernst & Young and De Brauw Blackstone Westbroek supported by local advisors in several countries Priority was to produce reliable and audited financial information for 2012 to facilitate financial restructuring Investigations revealed important findings: Key issue was fraudulent management in Poland and Germany Need to improve Imtech s governance, risk and control framework Tone from the top too much focused on good news Summary of findings report published on 18 June

5 Report to shareholders published Imtech s motivation Reporting in a transparent manner to shareholders Provide market (customers, suppliers) the assurance that this will never happen again through openness and corrective actions Provide Imtech s employees full disclosure about what happened and how to deal with it Bring a dark chapter to a close and start rebuilding the company s reputation 5

6 Key findings Poland Germany The Netherlands Fraudulent behavior Inflated (old) debtor positions Restatement of work in progress Significant forensic work had to be performed Dual accounting practice Restatement of work in progress Inflated (old) receivables positions Moving around project losses Irregularities in dealing with X Group Improper intercompany invoices Overstated prior period results 6

7 Significant write-offs and restatements In accordance with IAS 8 Clear cut errors in respective period Judgemental / other items in 2012 Total write-offs ( m) Restatements by nature ( m) Pre-tax 408 Work in progress 218 Tax credit -50 Trade receivables Misappropriated cash 65 Intercompany profits 31 Other

8 Significant write-offs and restatements (continued) Restatements by geography ( m) Restatements by year Germany Poland Benelux Spain 5 Eastern Europe 2 Germany: work in progress, trade receivables and misappropriated cash Poland: work in progress, trade receivables and misappropriated cash Benelux: intercompany profits Spain: work in progress ( m)

9 Corrective actions Management changes Management changes in Germany and Poland Operational focus and extension Board of Management Culture Mandatory business ethics training Remuneration policies in line with new targets 9

10 Corrective actions Governance, risk and control framework Appointment of Director Governance, Risk & Compliance New governance rules Board of Management New authorisation schedule Tender Review Board Internal audit department Dual reporting lines for key financial and legal management 10

11 Management changes New supervisory board members for appointment at EGM on 2 August 2013 Kees van Lede (chairman of the supervisory board) Frans Cremers (chairman of the audit committee) New member board of management for appointment at EGM on 2 August 2013 Paul van Gelder (board member, responsible for the IT, Marine and Traffic & Infra divisions of Imtech and Imtech Spain and Turkey) 11

12 3. Jaarverslag 2012 Verslag/rapport over de onderneming, werkzaamheden en resultaten van het jaar eindigend op 31 december

13 3. Jaarverslag 2012 Full-year 2012 performance Q quarterly results Going forward 13

14 Group performance ( m) Revenue 5, ,432.9 Result from operating activities Net finance result Result before tax Income tax Net result : including 67m restatements 2012: EBITDA including 50m restructuring charges EBITDA

15 Breakdown EBITDA performance ( m) % revenue Benelux % Germany & Eastern Europe % UK & Ireland % Spain & Turkey % Nordic % ICT, Traffic & Marine Group management/eliminations % 2012: EBITDA including 50m restructuring charges Benelux: 35.7m Spain: 5.4m Marine: 9.1m 15

16 Balance sheet ( m) Intangibles 1, ,299.7 Other fixed assets Assets held for sale Working capital Capital employed 1, ,633.1 Equity Net interest-bearing debt Other LT liabilities / liabilities held for sale Provisions , ,

17 Balance sheet - goodwill ( m) 2011 Book value Book value 2012 EBITDA Benelux Germany & Eastern Europe UK & Ireland Spain & Turkey Nordic ICT, Traffic & Marine Group management ,

18 Balance sheet working capital ( m) Work in progress Trade receivables 1, ,132.1 Other current assets Trade payables Other current liabilities Working capital % LTM revenue 4.5% 1.3% Working capital 2012 low level as result of write-offs and extended payment terms Other current liabilities includes employee related accruals, VAT, restructuring liabilities and various other accrued liabilities 18

19 Aging of trade receivables ( m) 2011 net 2012 net Not past due Past due 1-60 days Past due days Past due 181 days to one year Past due more than one year Total 1, ,132.1 Going forward a more rigid collection policy for <180 days past due debtors Going forward a more conservative impairment policy >180 days in line with industry standards 19

20 EUR 500 million rights issue Intended rights issue of 500 million euro Proceeds used to reduce indebtedness ING and Rabobank provided a volume underwriting, subject to customary conditions Shareholders will have opportunity to participate pro rata to their interest in Imtech ING AM Insurance Companies supports the right issue and will participate pro rata its shareholding Subject to approval of AGM today (see agenda item 7) Imtech aims to complete the intended rights issue in July

21 Balance sheet net interest-bearing debt ( m) Adjusted interest rate Syndicated bank loans euribor % 1) Senior notes % 1)+2) Local notes Finance leases Bilateral loans euribor % 1) Cash Net interest-bearing debt Note 1. including PIK interest (no cash) Note 2. different notes with different maturities and rates 21

22 Key financing facilities Following completion of the intended rights issue and the waiver and amendment Imtech has following key sources of debt financing: EUR 700m syndicated bank loans by 11 banks: EUR 326m senior notes with maturity from 2016 to 2023 EUR 229m committed bilateral facility Sufficient headroom under existing guarantee facilities Key revised covenants for the syndicated bank loans and senior notes: No testing in March June Sept Dec 2014 Key waiver terms Interest step-up of 300bps (100bps PIK) till leverage <2.0x Interest step-up on notes thereafter 175bps Restrictions on acquisitions, disposals, new debt and dividends 31 March June Sept 2015 Each Testing Date thereafter Leverage Ratio ( ) 6.00x 3.50x 3.25x 3.25x 3.00x 3.00x 2.75x 2.50x ICR ( ) 1.25x 2.50x 3.00x 3.00x 3.50x 3.50x 4.00x 4.00x 22

23 Disclosure notes Restatements Going concern disclosure Contingent liabilities Employee benefits, IFRS hit in 2013 (opening equity) of EUR 56 million non cash Subsequent events 23

24 Subsequent events Financial restructuring Expected costs for financial restructuring in total approximately: 110m (forensic) investigations: 15m - 20m Auditor: 10m One-off waiver fees for lenders: 15m All other fees: 65m - 70m Substantial out of pocket costs due to situation that has arisen in beginning of 2013 Operational restructuring - Supports new margin objectives 1,300 FTE reduction Mainly Benelux (550 FTE) and Germany (550 FTE) Implementation in H2 2013, process underway Total cost 80m Pay-back time months Additional discretionary costs savings programme 15-20m per annum 24

25 3. Jaarverslag 2012 Full-year 2012 performance Q quarterly results Going forward 25

26 Group performance Q ( m) Q Q Revenue 1, ,210.5 Result from operating activities Net finance result Result before tax Income tax Net result EBITDA Write-offs and impairments in 2012 have been allocated over the quarters pro rata 26

27 Breakdown EBITDA performance ( m) Q Q % revenue Benelux % Germany & Eastern Europe % UK & Ireland % Spain & Turkey % Nordic % ICT, Traffic & Marine % Group management/eliminations % 2013: EBITDA including 3m restructuring charges for Nordic and 9m for financial restructuring 27

28 Balance sheet Q ( m) Q Q Intangibles 1, ,319.9 Other fixed assets Assets held for sale Working capital Capital employed 1, ,022.1 Q Excluding restatement following IAS 19; impact YE 2012 employee benefits 56m, equity ( 40m), deferred taxes ( 16m) Equity Net interest-bearing debt ,220.7 Other LT liabilities / liabilities held for sale Provisions , ,

29 Balance sheet net interest-bearing debt ( m) Net interest-bearing debt 31 December Net interest-bearing debt 31 March ,221 Increase Q EBITDA Q Reversal ICT factoring -60 Pay-out of severance related to 2012 restructuring -25 Costs associated with investigations and financial restructuring -20 Capex -19 Acquisition of EMC (Finland, announced in Dec 12) -11 Seasonal Q1 impact working capital and miscellaneous

30 Balance sheet working capital ( m) Q Q Work in progress Trade receivables 1, ,106.5 Other current assets Trade payables Other current liabilities Working capital % LTM revenue 1.3% 8.0% Working capital 2013: payment terms with creditors have, to a large extent, been normalised 30

31 3. Jaarverslag 2012 Full-year 2012 performance Q quarterly results Going forward 31

32 Core value proposition intact ELECTRICAL ICT MECHANICAL DESIGN CONSULTANCY ENGINEERING MAINTENANCE MANAGEMENT IMPLEMENTATION MAINTENANCE SERVICES BUILDINGS INDUSTRY TRAFFIC & INFRA MARINE Integrated & multidisciplinary technical services 32

33 Cutting edge technology capabilities Smoke extraction systems for buildings and tunnels Mercedes-Benz Museum in Stuttgart Airport Düsseldorf Dry technology for paint shops High-tech painting plant Airbus Testing facilities automotive BMW Environmental Test Centre Turbine test facility MAN Diesel-electrical propulsion systems for ships Cruise vessels Traffic management centres Dutch government Dynamic positioning systems for ships Dredging vessels Pipelay vessels 33

34 Strategic focus Organic growth Focus on recurring revenue streams Multi-site / multi-service solutions Capitalizing post acquisitions Scaling technologies across the Group: Green technologies Water technologies Data centers Care & cure Operational excellence Project management and project execution Cash and working capital management Procurement processes Tender processes Risk management Governance and control Acquisitions Growth opportunities through consolidation in fragmented markets Leverage <2.0x 34

35 Resilient growth drivers Strong market and technology positions Unique competences One stop shop LEADING MARKET POSITIONS SOLID GROWTH POTENTIAL Structural high demand for technology Green technology Acquisition opportunities 55% recurring business Visibility order book 24,000 customers Diversified customer base in different end-markets RESILIENT BUSINESS MODEL OPERATIONAL EXCELLENCE Margin improvement Cash generation 35

36 Recurring revenue streams & multi-technical, multi-site services offerings Recurring revenue streams Provide additional services to existing customers Introduce new services to existing customers across business segments Secure a sustainable recurring revenue stream from new customers Multi-technical, multi-site services offerings Increasing trend to outsource a wide range of technical services Imtech well positioned to benefit from this trend through its wide range of multi-technology competences, logistical expertise and its dense local network 36

37 Capitalising past acquisitions Key area s Acceleration of selected integration processes, mainly through sharing best practices on execution, technology and organising back offices efficiently - Integration of acquisitions in Nordic for offering integrated M&E solutions/services - Integration of acquisitions in UK for offering integrated engineering, installation and maintenance services - Exporting of technologies into the acquired companies: regions and also in ICT, Traffic and Marine markets 37

38 Scaling technologies across the Group Scaling of technologies Green technologies: - Energy efficiency & savings - Waste-to-energy - Decentralised power plants - Energy contracting Water technologies - Water treatment and waste-water treatment Data centres Care & cure - ICT competences, energy, medical equipment and also aging of people 38

39 Focus on project management and risk management Project management Project management and project execution are key Enhanced focus on roll-out of internal best practices Introduction of global account management for key customers Risk management Imtech s infrastructure was not in line with the increase in complexity and size of the Group Risk management policy strengthened by: - enhanced tender procedures - setting-up of an internal audit department - appointment of a Group Director GRC 39

40 Focus on working capital and cash management Working capital Increase in W/C in Q result of unwinding the creditor overstretch and normal seasonal effects Return to normalised situation will result in cash-in from W/C Q3-Q4 Focus on W/C management Cash management Introduction of a Group wide guarantee management system Restructuring of existing cash management and pool arrangements Implementation of treasury management system 40

41 Procurement strategy & tendering procedures Procurement strategy Procurement strategy in place since late 2011, focusing on cross-divisional cooperation Unlocks suppliers innovations to the whole Group Tender procedures Introduction of Tender Review Board (TRB), which will include a member of the Board of Management All projects with a project value above EUR 15m or with a high risk profile will require TRB approval Projects with a value above EUR 75 million, will require approval by the entire Board of Management and in addition such projects must be submitted for prior approval by the Supervisory Board 41

42 New medium-term targets Growth Organic; GDP+ Additional growth through acquisitions in fragmented markets (when leverage <2.0) Margin 4-6% operational EBITDA margin Cash flow 90% cash conversion (EBITA) Leverage x net debt/ebitda by end of 2015 Dividend 40% pay-out when leverage is below

43 4. Samenstelling van de Raad van Bestuur Benoeming de heer J. Turkesteen als lid van de Raad van Bestuur met titel CFO 43

44 5. Samenstelling van de Raad van Commissarissen Toelichting op de samenstelling van de Raad van Commissarissen 46

45 6. Bezoldigingsbeleid betreffende de Raad van Bestuur Wijziging van het Bezoldigingsbeleid van de Raad van Bestuur 47

46 7. Claimemissie en statutenwijziging i. Statutenwijziging, en ii. Machtiging tot uitgifte van gewone aandelen en tot het beperken of uitsluiten van voorkeursrechten in verband met de voorgestelde claimemissie 48

47 8. Machtiging uitgifte cumulatief preferente financieringsaandelen Aanwijzing van de Raad van Bestuur als het bevoegde orgaan om onder goedkeuring van de Raad van Commissarissen te besluiten tot uitgifte van cumulatief preferente financieringsaandelen en tot het verlenen van rechten tot het nemen van genoemde aandelen als bedoeld in artikel 6 van de statuten voor de duur van 18 maanden met dien verstande dat deze bevoegdheid is beperkt tot 10% van het geplaatste kapitaal per tijdstip van het uitgiftebesluit. 49

48 9. Rondvraag 50