1 9m 2013 results presentation| november 27, 2013 · 2 9m 2013 results presentation| november 27,...
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1 9M 2013 Results Presentation| November 27, 2013
2 9M 2013 Results Presentation| November 27, 2013
1. HIGHLIGHTS 3
2. FIRST NINE MONTHS OF 2013 RESULTS 7
3. FINANCIAL STRUCTURE 13
ANNEX: MAIN WORKS AWARDED 14
This document was prepared by Grupo Soares da Costa, SGPS, SA (Soares da Costa) to be used for its first nine months of 2013 results presentation. Nor Soares da Costa, nor any of its representatives, assume any type of responsibility regarding the eventual negative effects or losses caused by the use of the information contained in this document. This document does not constitute a public offer or an invitation to buy or sell shares, namely as defined in the Portuguese Securities Code, chapter III. This document does not constitute an offer/ request to buy, sell or exchange, and is not a voting request or the request for an approval in any jurisdiction. Neither the document, nor any part of its parts, constitute a contract, nor can it be used to integrate or interpret any contract or any type of commitment.
CONTENTS
3 9M 2013 Results Presentation| November 27, 2013
SIGNS OF RECOVERY OF THE ACTIVITY IN THE QUARTER
ORDER BOOK WITH AN INCREASINGLY INTERNATIONAL PROFILE
CAPITALISATION OPERATION
HIGHLIGHTS
4 9M 2013 Results Presentation| November 27, 2013
HIGHLIGHTS
CAPITALISATION OPERATION
CORPORATE RESTRUCTURING OF SOARES DA COSTA CONSTRUÇÃO
FINANCING BANKS FINANCIAL CLOSE
Operation presented to the banks, with ongoing negotiations to attain the necessary agreements
Expected to take place before the end of 2013
Signed with the company GAM Holdings (Investor), the subscription agreement and shareholders' agreement, which define the terms of the strategic partnership Participation in SDC America transferred to Grupo Soares da Costa Shared Services transferred to Soares da Costa Construção
5 9M 2013 Results Presentation| November 27, 2013
HIGHLIGHTS
SIGNS OF RECOVERY OF THE ACTIVITY IN THE QUARTER
3Q’s turnover showns signs of recovery in the Group’s main markets: Angola, Portugal, U.S. and Mozambique
However, cumulated changes to 9M 2012 are still negative in some markets (Portugal, Angola and U.S.), where recovery will be gradual
34
83
28
13 6
45 47
28 23
11
48 52
29 26
9
Portugal Angola U.S. Mozambique Other
1Q 2013
2Q 2013
3Q 2013
196
259
98
50
16
127
181
84 61
27
Portugal Angola U.S. Mozambique Other
9M 2012
9M 2013
6 9M 2013 Results Presentation| November 27, 2013
415 440
120 145
149 164
153 95
31.12.2012 30.09.2013
Othercountries
U.S.
Mozambique
Angola
HIGHLIGHTS
ORDER BOOK WITH AN INCREASINGLY INTERNATIONAL PROFILE
Order book’s strong international profile even more pronounced, reinforced by the write-off of the East Lisbon Hospital project in this 3Q
ORDER BOOK OF 913 MILLION EUROS AS OF SEPTEMBER 30, 2013
International order book kept its total value vs. Dec 31, 2012, but there was a positive evolution in Mozambique, U.S. and Angola
838 845
+6%
+10%
+21%
20% 15% 15% 7%
80% 85% 85% 93%
31.12.2012 31.03.2013 30.06.2013 30.09.2013
International
Domestic
7 9M 2013 Results Presentation| November 27, 2013
9M 2013 RESULTS | KEY PERFORMANCE INDICATORS
CONSOLIDATED TURNOVER REACHED 480 MILLION EUROS (-22% YOY)
EBITDA OF 48 MILLION EUROS, DECREASING 27% COMPARED WITH 9M 2012, CORRESPONDING TO A 10.0% MARGIN, ONLY -0.6% VERSUS THE PREVIOUS YEAR
RECURRENT EBITDA (EXCLUDING COSTS WITH LABOUR CONTRACTS’ TERMINATION BY MUTUAL AGREEMENT) OF 53 MILLION EUROS, CORRESPONDING TO A 11.0% MARGIN
EARNINGS BEFORE TAXES OF -16 MILLION EUROS, RECOVERING FROM THE -20 MILLION EUROS ACCOUNTED IN 9M 2012
FINANCIAL RESULTS AMOUNTED TO -39 MILLION EUROS, IMPROVING CIRCA 12 MILLION EUROS COMPARED WITH 9M 2012
NET EARNINGS OF -16 MILLION EUROS, IN LINE WITH THE PREVIOUS YEAR
8 9M 2013 Results Presentation| November 27, 2013
Figures in million Euros
9M 2013 RESULTS | KEY PERFORMANCE INDICATORS
Consolidated 9M 2012 9M 2013 YoY 1Q 2013 2Q 2013 3Q 2013 QoQ
Turnover 619.3 479.9 -22% 162.8 153.1 164.0 7%
EBITDA 65.4 48.0 -27% 16.5 17.1 14.3 -17%
EBITDA margin 10.6% 10.0% -0.6 pp 10.1% 11.2% 8.7% -2.5 pp
Recurrent EBITDA 81.7 52.8 -35% 18.0 20.4 14.4 -29%
Recurrent EBITDA margin 13.2% 11.0% -2.2 pp 11.1% 13.3% 8.8% -4.5 pp
EBIT 31.3 23.2 -26% 7.8 9.0 6.4 -30%
EBIT Margin 5.1% 4.8% -0.2 pp 4.8% 5.9% 3.9% -2.0 pp
Financial Results -51.4 -39.2 -24% -10.5 -13.6 -15.2 12%
Earnings before Taxes -20.1 -16.0 -20% -2.7 -4.5 -8.8 94%
Income Tax 4.0 -0.1 -103% 0.9 -2.9 1.9 -166%
Minorities -0.1 -0.1 64% -0.1 0.1 -0.1 -248%
Net Earnings -16.0 -16.0 0% -2.0 -7.3 -6.8 -6%
Order Book 1,102.3 912.8 -17% 1,081.7 1,063.6 912.8 -14%
Net Debt 961.4 1,094.5 14% 1,037.3 1,058.5 1,094.5 3%
9 9M 2013 Results Presentation| November 27, 2013
9M 2013 RESULTS | EVOLUTION OF TURNOVER
480 MILLION EUROS OF TURNOVER,
-22% THAN IN 9M 2012
Figu
res
in m
illio
n E
uro
s
619 million 480 million
Turnover still under pressure due to the
decreasing evolution of the construction and
concessions business areas (in this case from the
construction volume of Transmontana vs. 9M 2012)
Construction’s turnover mirrors the contraction
in Portugal (-41%) and delays in some works in
Angola and U.S., not yet totally recovered
210
244
199
230
191 183 163 153
164
3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13
196 127
259
181
98
84
50
61
16
27
9M 2012 9M 2013
Other countries+63%
Mozambique +21%
U.S. -14%
Angola -30%
Portugal -35%
564
394
133
92
4
23
-82 -29
Other/ Adjust. -64%
Real Estate +473%
Concessions -31%
Construction-30%
10 9M 2013 Results Presentation| November 27, 2013
9M 2013 RESULTS | OPERATIONAL PROFITABILITY
48 MILLION EUROS OF EBITDA,
CORRESPONDING TO A 10.0% MARGIN
Figu
res
in m
illio
n E
uro
s
65 million
48 million
EBITDA decrease in the 9M 2013 is mainly
explained by the construction’s negative evolution,
affected by the reduction in production and by lower
non recurring costs with labour contracts’ termination
EBITDA margin performance continues to be
resilient, with a recurrent margin of 11.0% despite the
22% decline in turnover
10.6%
13.2%
10.0% 11.0%
EBITDA margin Recurrent EBITDA margin
9M 2012
9M 2013
36.2
7.2
36.0
33.7
2.6
5.8
-9.4
1.3
9M 2012 9M 2013
Other/ Adjust.+113%
Real estate +121%
Concessions -6%
Construction -80%
11 9M 2013 Results Presentation| November 27, 2013
9M 2013 RESULTS | PROFITABILITY
NET EARNINGS OF -16.0 MILLION EUROS IN LINE WITH
THE PREVIOUS YEAR
In spite of the decrease of the operational
profitability (-8 million) and of the
aggravation of the tax function (-4 million),
the 12 million Euros improvement of the
financial results allowed not to increase the
net losses compared to 9M 2012
(million Euros) 9M 2012 9M 2013 Var. Var. %
Net financing costs -37.6 -32.1 5.5 -15%
Foreign exchange differences -0.04 0.02 0.06 -155%
Other financial gains and losses -13.8 -7.2 6.6 -48%
Financial Results -51.4 -39.2 -12.1 -24%
FINANCIAL RESULTS EVOLUTION
65.4
48.0
31.3 23.2
-51.4
-39.2
4.0
-0.1
-16.0 -16.0
9M 2012 9M 2013
EBITDA EBIT Financials Income tax Net earnings
12 9M 2013 Results Presentation| November 27, 2013
563.8 393.6
6.4%
1.8%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
9M 2012 9M 2013
Turnover EBITDA margin
133.5 92.3
26.9%
36.5%
0%2%4%6%8%10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%46%48%50%52%54%
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
9M 2012 9M 2013
Turnover EBITDA margin
4.1 23.4
64.5%
24.8%
0%2%4%6%8%10%12%14%16%18%20%22%24%26%28%30%32%34%36%38%40%42%44%46%48%50%52%54%56%58%60%62%64%66%68%70%72%74%76%78%80%82%84%86%88%90%92%94%96%98%100%
0.0
5.0
10.0
15.0
20.0
25.0
30.0
9M 2012 9M 2013
Turnover EBITDA margin
9M 2013 RESULTS| EVOLUTION BY BUSINESS AREA
Figures in million Euros
• The lower revenue accounting recognition associated with the construction of Transmontana (concluded in August) and Estradas do Zambeze is the main reason behind the turnover’s 31% decline
• The same effect has a positive impact in the EBITDA margin, that improved 9.6 p.p.
• Turnover declined 30% compared with the previous year, with decreases in Portugal, Angola and U.S.
• EBITDA margin affected by the activity’s reduction and non recourse costs (of almost 5 million in 9M 2013)
• Recurrent EBITDA margin of 3.0% in 9M 2013
CONSTRUCTION CONCESSIONS REAL ESTATE
• 9M 2013’s turnover benefited 19 million from the sale of the Talatona project in Angola (announced in 1Q)
• This sale also decisively impacted EBITDA and EBITDA margin in the period under review
13 9M 2013 Results Presentation| November 27, 2013
FINANCIAL STRUCTURE| EVOLUTION OF NET DEBT
CONSOLIDATED NET DEBT REACHED
1,094 MILLION EUROS AS OF SEPTEMBER 30, +3% than by the end of June 2013
Figu
res
in E
uro
s
Both corporate net debt (recourse) and
project finance net debt (non recourse)
contributed (in nearly equal proportions) for
this evolution
Corporate net debt rose 19 million Euros,
justified by the reinforcement need of the
Group’s working capital items
Net debt associated with project finance
increase 17 million in the quarter, related
with an 11 million increase in Transmontana
net debt and 6.8 million in Scutvias (by
seasonal reduction of cash, as gross debt
remained stable)
961 1,024 1,037 1,058
1,094
536 564 584 592 610
426 460 453 467 484
Sept 12 Dec 12 Mar 13 Jun 13 Sept 13
Net debt Corporate net debt Net debt in project finance
14 9M 2013 Results Presentation| November 27, 2013
ANNEX | MAIN WORKS AWARDED IN THE QUEARTER (AND UP TO 31 OCT 2013)
(*) Works not included in the order book as of 30.09.2013
Construction of a building to the Instituto Superior Politécnico Lusíada
(Lusíada Polytechnic Higher Education Institute), in Huambo
3 million Euros
ITT2013 Civil Construction For Drilling Campaign, to Anadarko
University Building Complex, in Maputo
Administration Block and Classrooms to the ISAP’s future campus in
Tchumene
Lisboa Historical Hotel, in Praça de Comércio, in Lisboa
Pestana Porto Hotel’s expansion works, in Ribeira, Porto (*)
Project “T5469 SR50 Dean to Avalon” in Florida (Orlando region),
consisting in the refurbishment and enlargement of the SR50 in Orange
County (*)
49 million Euros
9 million Euros
4 million Euros
2 million Euros
3 million Euros
7 million Euros
15 9M 2013 Results Presentation| November 27, 2013
CONTACTS
GRUPO SOARES DA COSTA SGPS SA
www.soaresdacosta.pt Public Company Head office: Rua de Santos Pousada, 220 4000-478 Porto Share Capital 160,000,000 Euros Commercial Registry Office of Porto, corporate body and register number: 500 265 753 Representative for Market Relations António Frada T: +351 22 834 22 43 Investor Relations Rita Carles T: + 351 21 791 3236 | + 351 22 834 2217 [email protected]