Results Presentation Jan-Sep November 25 th, 2014

Transcription

1 Results Presentation Jan-Sep 2014 November 25 th, 2014

2 Disclaimer This document has been prepared by Grupo Isolux Corsán, S.A.; therefore no part of it may be published, disclosed or distributed in any form or by any means, nor used by any other person or entity, without the prior written consent of Grupo Isolux Corsán, S.A. This document contains statements related to our future business and financial performance and future events or developments involving us that may constitute forward-looking statements. These statements may be identified by words such as expects, looks forward to, anticipates, intends, plans, believes, seeks, estimates, will, project or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in material delivered to shareholders and in press releases. In addition, our representatives may from time to time make oral forward-looking statements. Such forward-looking statements and information are based on the current expectations and assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, which are beyond our control or may be difficult to predict, affect our operations, performance, business strategy and results and could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements or anticipated on the basis of historical trends. Should one or more risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results, performance or achievements may vary materially from those described in the relevant forward-looking statement as being expected, anticipated, intended, planned, believed, sought, estimated or projected. We neither intend, nor assume any obligation, to publicly update or revise these forward-looking statements in light of developments which differ from those anticipated. The information contained in this document has not been verified or revised by the auditors of Grupo Isolux Corsán, S.A. Certain data included in this presentation has been subject to rounding adjustments. Accordingly, in certain instances, the sum of the numbers in a column or a row in tables may not conform exactly to the total figure given for that column or row. This document does not constitute or form part of any offer for sale or subscription of or solicitation or invitation of any offer to buy or subscribe for any securities in any jurisdiction, including in the United States, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. Specifically, this presentation does not constitute a prospectus within the meaning of the Securities Act. November 25 th

3 Results Presentation Q Table of Contents Table of Contents 1. Key Developments 2. Business and Financial Highlights i. EPC ii. Concessions iii. Other 3. Cash flow and debt overview 4. Appendix November 25 th

4 1. Key Developments November 25 th

5 Results Presentation Q Key Developments Group Group Financials Mandatory adoption of IFRS 10 & 11 effective from January 2014 Isolux Infrastructure now accounted for by the equity method (vs. proportional in 2013) Group consolidated financials therefore consist mainly of the EPC segment (1) Comparable 2013 figures included in this presentation were prepared under new accounting rules Segment reporting structure: presenting figures before Equity method adjustments for a better understanding of Income Statement and Balance sheet Q3 YTD 2014 Consolidated revenues reached 1,549 million Excluding FX impact, revenues would have been flat. Q3 YTD 2014 international revenues stood at 82%, up from 71% in Q3 YTD 2013 Q3 YTD 2014 Consolidated EBITDA: 186 million (+6% growth) Main growth driven by power generation projects in Latam. Concessions EBITDA increased by 25% vs. the first nine months of 2013 EPC Concessions EPC backlog at 6.6 bn (6% Y-o-Y increase) New orders in Q amounted to 633m. Cumulative new orders in the YTD period reached 2.2bn Significant new contracts awarded after September (not included in Q3 YTD backlog): 4 roads in India ( 277 million), 2 roads in Bolivia ( 81 million), transmission lines in Peru ( 400 million) and Mexico ( 40 million) and substation in Kuwait ( 18 million). Car parks: corporate operation with an external investor to jointly develop (or potentially sell) the business. Agreement signed implies that there is joint control and therefore Car parks is currently consolidated under the equity method. 1. Proxy for the Bondholders relevant perimeter. Companies included in the financials, but excluded from this perimeter, accounted for 14.9 million Revenue and 11,6 million EBITDA in Q3 YTD2014. November 25 th

6 Results Presentation Q Key Developments Isolux Corsán Group REVENUES Key metrics by segment (in MM, unless otherwise stated) Q3 YTD 2013 Q3 YTD 2014 Change EBITDA Q3 YTD 2013 Q3 YTD 2014 Change Q3 YTD 2013 EBITDA Margin Q3 YTD 2014 EPC 1,662 1,541 (7%) (7%) 13% 13% Concessions % % 56% 60% Other and corporate (42) (18) 57% n.a. n.a. Subtotal 2,044 2,009 (2%) % 19% 22% Adjustments due to change in consolidation method (1) (253) (460) - (215) (266) (24%) n.a. n.a. Total consolidated 1,791 1,549 (13%) % 10% 12% Segment reporting structure aligned with internal management report to clearly present current trading on Income Statement and 1. Mainly due to equity method consolidation of Isolux Infrastructure November 25 th

7 Results Presentation Q Key Developments Isolux Corsán Group Debt breakdown by segment (in MM, unless otherwise stated) Bank borrowings and Senior Notes Dec 31, 2013 Sep 30, 2014 Project Finance (2) Dec 31, 2013 Sep 30, 2014 Cash and cash equivalents Dec 31, 2013 Sep 30, 2014 EPC Concessions 9 8 2,628 3, Corporate and other 1,119 1, Subtotal 1,325 1,552 2,830 3, Adjustments due to change in consolidation method (1) - - (2,628) (3,226) (179) (368) Total consolidated 1,325 1, Balance Sheet figures 1. Mainly due to equity method consolidation of Isolux Infrastructure 2. Guarantees given from Grupo Isolux Corsán to Isolux Infrastructure to finance projects amounted to 229M as of December , and 183 M as of September 30, 2014 November 25 th

8 Results Presentation Q Key Developments Isolux Corsán Group (in MM, unless otherwise stated) FY 2013 Q Borrowings (1) 1,325 1,552 Cash and cash equivalents before IFRS Net Corporate Debt as per bank definition LTM EBITDA (4) LTM Distributions from concessions LTM Others (2) LTM Adjusted EBITDA Total Net Corporate Leverage (3) 2.7x 2.9x Increase in gross borrowings is mainly due to working capital funding requirements (1) The relevant bondholders perimeter figure would also include Project finance ( 203 MM) and Real Estate ( 24 MM) for FY 2013 and Project finance ( 231 MM), Real Estate ( 18 MM) for Q3 YTD 2014 (2) LTM Others includes indemnities and redundancy costs mainly related to headcount restructuring in our Spanish construction business (3) Net Corporate Leverage calculated as Net Corporate Debt / LTM Adjusted EBITDA (4) For comparability purposes, FY 2013 figures have been restated to include Car Parks, which is no longer classified as an Asset held for sale and is now consolidated by the equity method November 25 th

9 2. Business and Financial Highlights i. EPC November 25 th

10 Results Presentation Q Business and Financial Highlights EPC (in MM, unless otherwise stated) Q3 YTD 2013 Q3 YTD 2014 Change New Orders Backlog Own Backlog 2,390 2,223 (7%) 6,245 6,626 6% 20% 17% (3.0 p.p.) Change Excl FX Rate Revenue 1,662 1,541 (7%) 4% Book to bill ratio (1) 1.4x 1.4x 0.0x EBITDA (7%) EBITDA Margin 13.2% 13.2% 0.0 p.p. Operating Cash Flow (2) (18) (49) 172% Cash Flow from Investments (2) (62) (24) (61%) Strong growth in our backlog during the first nine months of 2014 (6% increase compared to the same period in 2013). Investments decreased by 61% in line with expectations. 1. Defined as New Orders / Revenue 2. From consolidated Cash Flow Statement which is a proxy to EPC & Other business segments. November 25 th

11 EPC - Key Financial Highlights Results Presentation Q Business and Financial Highlights Key Figures EPC Segment (in MM) 2,390 New Orders Backlog Revenue EBITDA Q3 YTD ,223 Q3 YTD ,245 Q3 YTD ,626 1,662 Q3 YTD 2014 Q3 YTD ,541 Q3 YTD Q3 YTD Q3 YTD 2014 Main developments Strong backlog providing visibility for the next 2.8 years. Revenues are mainly impacted by FX movements. EBITDA evolution primarily driven by revenues, as margins remained stable. Main contracts awarded in 2014: Hydropower plant in Bolivia ( 315m) Third combined cycle power plant in Bangladesh ( 213m) Pellet Plant in USA ( 100m) EPC Segment New Orders y-o-y Backlog y-o-y Revenue y-o-y EBITDA y-o-y Growth (7%) 6% (7%) (7%) Robust new orders and backlog ( 700 million of new orders awarded after September, hence, not included in these figures). Revenues trend impacted by FX. November 25 th

12 Results Presentation Q Business and Financial Highlights EPC Revenue by activity EPC Revenue by Geographic Area Q3 YTD ,541 MM Q3 YTD 2014 T&D 26% Infrastructure 40% Middle East and Africa 5% Asia 18% North America 2% Rest of Europe 3% Spain 19% 8% increase in weight of international Revenue Energy 34% Latam 53% EPC revenues well balanced and diversified by business line Q3 YTD ,662 MM Q3 YTD % International T&D 29% Infrastructure 33% Middle East and Africa 5% North Rest of America Europe 8% 4% Asia 13% Spain 27% Energy 37% Latam 43% 73% International November 25 th

13 Results Presentation Q Business and Financial Highlights EPC Own Backlog EPC Backlog by Segment EPC Backlog Concentration EPC Backlog by Geographic Area Q Q Bn Q Q rd Parties 83% Concessions Division 17% T&D 22% Energy 21% Infrastructure 57% 10M- 50M 26% <10M 10% 50M- 100M 20% >250M 14% 100M- 250M 30% Rest of Europe 3% Spain 16% North America 5% LATAM 48% Middle East and Africa 13% Asia 15% 84% International Q Q Bn Q Q Concessions Division 20% 3rd Parties 80% T&D 24% Infrastructure 56% Energy 20% 10M- 50M 32% <10M 5% 50M- 100M 11% >250M 12% 100M- 250M 40% Spain 21% Rest of Europe 2% North America 1% Middle East and Africa 12% LATAM 47% Asia 17% 79% International November 25 th

14 2. Business and Financial Highlights ii. Concessions November 25 th

15 Concessions - Key Financial Highlights Results Presentation Q Business and Financial Highlights Key Figures Concessions (in MM) Main developments Revenue % EBITDA +25% 267 Strong Revenue and EBITDA growth mainly driven by : Start of operations of transmissions lines in Brazil and US. Tariff revision of our Brazilian transmission lines granted in June Q3 YTD 2013 Q3 YTD 2014 Revenue Jan-Sep 2013 (1) 3% 28% 30% 39% Q3 YTD 2013 Q3 YTD 2014 Revenue Jan-Sep 2014 (1) Transmission lines 3% 18% Toll roads 48% Solar 31% Car parks Isolux Infrastructure secured the financing of US toll road I-69, by completing the issuance of PABs for $252 million, with interest rate below 5%. The bonds mature between 2034 and Isolux Infrastructure accounted for by the equity method from January 2014 (vs. proportional in 2013) (1) Construction Revenue not included November 25 th

16 Results Presentation Q Business and Financial Highlights Concessions Revenues Key financial metrics (in MM, unless otherwise stated) Q3 YTD 2013 Q3 YTD 2014 Change EBITDA Q3 YTD 2013 Q3 YTD 2014 Change EBITDA Margin Q3 YTD 2013 Q3 YTD 2014 Transmission lines % % 82% 81% Toll roads % % 62% 62% Solar photovoltaic (18%) (16%) 81% 82% Isolux Infrastructure % % 73% 75% Car Parks % % 24% 32% Other( inc. Construction revenue) (8%) 4 (2) (137%) 5% (2%) Total Concessions % % 56% 60% Transmission lines Total kilometres: 5,959 Toll roads Total kilometres: 1,644 Solar PV Car Parks Total MW: 326 Total spaces: 23,789 39% 61% 10% 90% 22% 78% 5% 95% In operation Under construction November 25 th

17 Solar Concessions Isolux Infrastructure s Assets Location Asset Stake (1) (%) Results Presentation Q Business and Financial Highlights Years to Maturity Demand Risk Revenue Mechanism (2) Investment Grade Country LXTE 100% Availability Payment LMTE 100% Availability Payment (1) Stake held by Isolux Infrastructure (2) Revenues indexed to inflation. (3) PPA stands for Power Purchase agreement. (4) 50% stake owned in partnership with Morgan Stanley Infrastructure Partners. Toll-Roads Transmission Lines (Brazil) (India) (USA) (Brazil) (India) (Mexico) (Spain) (USA) CPTE 100% Availability Payment IENNE 50% Availability Payment JTE 33% Availability Payment LTTE 100% 27 Availability Payment LITE 100% 29 Availability Payment UPTE 95% 34 Availability Payment WETT 50% Unlimited Availability Payment BR116 76% Real Toll NH1 61% Real Toll NH2 (4) 50% Real Toll NH6 (4) 50% 14 Real Toll NH8 (4) 50% 13 Real Toll CAMS 100% Real Toll COPEXA 50% Real Toll Ocaña A4 51% Shadow Toll I 69 Section 5 51% 37 Availability Payment T-Solar 88% Unlimited PPA (3) / Feed in Tariff Operational & under construction Under construction Start of operations November 25 th

18 2. Business and Financial Highlights iii. Other November 25 th

19 Others - Key Financial Highlights Results Presentation Q Business and Financial Highlights Key Figures Others (in MM) EBITDA Q3 YTD 2013 Q3 YTD 2014 (18) (42) Main developments Others mainly includes overhead expenses and non-core assets Corporate costs are declining during the current financial year following the restructuring measures implemented in 2013 Infinita: Castellón plant started production in April, following the agreement with Musim Mas. The plant is producing at normal levels (c. 85% of capacity). Q3 YTD 2014 EBITDA includes the 12 million impact of a wind farm that started operations in the first half of the year. This asset is classified as held for sale in our balance sheet Others EBITDA y-o-y Growth 57% November 25 th

20 3. Cash flow and debt overview November 25 th

21 Results Presentation Q Business and Financial Highlights Cash Flow Bridge Consolidated Cash Flow Bridge September 2013 to September 2014 (in MM) Cash activity is in line with the business plan for the period z (49) 77 Exchange differences (6) (24) Cash and cash equivalents Sep 2013 Cash and cash equivalents Dec 2013 Operating cash flow Jan-Sep 2014 Cash flows from investing activities Jan - Sep 2014 Cash flow from financing activities Jan-Sep 2014 Cash and cash equivalents Sep 2014 November 25 th

22 Results Presentation Q Business and Financial Highlights Debt Maturities Corporate debt maturities: breakdown by type of debt (Total 1,552 MM) Rest of and onwards (1) Rest of and onwards Term loans Advanced credit debts Senior notes Credit lines Finance lease liabilities The outstanding debt to be repaid in 2014 is composed by other term loans and advanced credit debts (factoring). We have extended the maturity of the majority of our Spanish credit facilities to an average term of 2 years (now maturing between H and 2016). The credit lines maturing in 2014 mainly correspond to international subsidiaries (Brazil, Mexico, etc.) and are expected to be renewed without issues, as it has been the case in prior years. (1) Senior Notes in accordance with IFRS, at amortized cost November 25 th

23 4. Appendix November 25 th

24 Results Presentation Q Appendix Detailed Financial Statements - Consolidated Balance Sheet by segment December 31, 2013 September 30, 2014 Consolidated Balance Sheet (in million ) EPC Concessions Other and corporate Sub-Total Change in consolidation method Total Consolidated Property, plant and equipment Investments in associates and joint ventures Other non-current assets ,059-4,048 1, ,870-4,844 1,025 Total non current assets 714 4, ,185-3,220 1, , ,983-3,863 2,120 Inventories Accounts receivable 2, , ,657 2, , ,903 Derivative financial instruments Financial assets Cash and cas equivalents Non-current assets held for sale Total current assets 2, , ,774 3, , ,811 Total assets 3,645 4, ,400-3,662 4,738 3,723 5, ,567-4,636 4,931 Borrowings ,119 1,325-1, ,370 1,552-1,552 Project finance 29 2, ,830-2, , ,464-3, Liabilities held for sale Accounts payable 2, , ,191 2, , ,302 Other liabilities , Total liabilities 2,761 3,948 1,136 7,845-3,530 4,315 2,810 4,616 1,602 9,028-4,505 4,523 EPC Concessions Other and corporate Sub-Total Change in consolidation method Total Consolidated November 25 th

25 Results Presentation Q Appendix Detailed Financial Statements - Consolidated Income Statement by segment Jan-Sep 2013 Jan-Sep 2014 Consolidated Income Statement (in million ) EPC Concessions Other and corporate Sub-Total Change in consolidation method Total Consolidated Revenues/Sales 1, ,044 (253) 1,791 1, ,009 (460) 1,549 Other (129) Total operating income 1, ,204 (382) 1,822 1, ,021 (468) 1,553 Other operating expenses (1,595) (176) (42) (1,814) 167 (1,647) (1,350) (179) (40) (1,569) 202 (1,367) EBITDA (42) 391 (215) (18) 452 (266) 186 Depreciation, amortization and impairment losses (13) (59) (16) (88) 59 (29) (15) (64) (21) (100) 65 (35) Change in trade provisions (3) (16) 0 (19) - (19) (10) 0 (25) (35) - (35) Operating results (58) 284 (156) (64) 317 (201) 116 Net financial results (10) (190) (64) (264) 144 (119) (17) (189) (120) (326) 169 (158) Equity method (5) (5) Profit before income tax 193 (51) (122) 20 (16) (184) (9) (10) (20) Income tax - - (5) (5) (3) (3) 11 8 Results for the period from continuing operations 193 (51) (126) 15 (11) (187) (12) 1 (11) Results for the period from discontinuing operations - - (10) (10) - (10) - - (8) (8) - (8) Results for the period 193 (51) (136) 6 (11) (5) (195) (20) 1 (20) Attributable to: Owners of the parent (17) - (17) Non-controlling interests (11) (10) (3) 1 (3) EPC Concessions Other and corporate Sub-Total Change in consolidation method Total Consolidated November 25 th

26 Detailed Financial Statements Consolidated Cash Flow Statement Results Presentation Q Appendix Consolidated Cash Flow (in million ) Jan-Sep 2013 Jan-Sep 2014 Profit/(loss) for the period before taxes (7) (29) Adjustments for non-cash items Changes in working capital (173) (221) Taxes paid (19) (7) Net cash generated from /(used in) operating activities (18) (49) Acquisition of concessionary assets and non-current assets assigned (39) (0) Other Capex, net (25) (27) Interest received and other financial income 2 4 Net cash used in investing activities (62) (24) Income/(Reimbursement) of Corporate debt, net 46 (653) Income/(Reimbursement) of Project finance, net Proceeds from issuance of Senior Notes Interest paid (92) (132) Net cash flows generated from /(used in) financing activities (34) 78 November 25 th

27 Thank you Isolux Corsán Investor Relations Isolux Corsán 2014 November 25 th