Orascom Construction Plc · EGX:ORAS
Orascom Construction — Investor Presentation (January 2023)
27 slides from Orascom Construction's investor presentation, January 2023
Slide 1: Corporate Presentation January 2023
Bahr El Baqar Water Treatment Plant, Egypt Corporate Presentation January 2023
Slide 2: Highlights
Highlights Global contractor focused on infrastructure, industrial and high-end commercial projects in MEA and USA ▪ Dual listing on NASDAQ Dubai and the Egyptian Exchange – Shareholding above 5%: Sawiris Family - 51.8%; Sustainable Capital - 16.2%; Melinda French Gates - 5.8%(1) ▪ Pro forma backlog
Slide 3: Strong Track Record of Geographic and Sector Expansion
Strong Track Record of Geographic and Sector Expansion History of Creating Value for Shareholders Growing Family Construction Business Incubating Cement, Port & Fertilizer Lines Building an Investments and O&M Portfolio ▪ Roots trace back to 1950s in Egypt where first ▪ Created a top 10 global cemen
Slide 4: A Wide Range of EPC Capabilities Across Various Geographies
A Wide Range of EPC Capabilities Across Various Geographies Orascom Construction PLC operates under three brands and owns 50% of BESIX Group Orascom Construction Weitz ▪ Established in 1950 ▪ Established in 1855 ▪ Leading MENA industrial and infrastructure contractor ▪ Backlog: USD 1.4 billion ▪ Bac
Slide 5: Leading EPC Track Record Across Several Industries and Geographies
Leading EPC Track Record Across Several Industries and Geographies Select Track Record Transportation • Egypt’s first high-speed rail (2,000 km – 6th largest in the world) and the world’s longest monorail project • Key Cairo Metro player since the late 1980s and completed over 1,000km of rail projec
Slide 6: Consolidated Backlog
Consolidated Backlog Evolution of Consolidated Backlog (USD Billion) (1) Consolidated Backlog New Awards ▪ Consolidated backlog (excluding BESIX) $6.1 $6.0 (2) decreased 4.9% y-o-y to USD 5.7 billion in 9M $5.7 2022(2) $5.4 $5.4 $4.3 ▪ Consolidated new awards decreased 29.6% $3.6 $3.6 y-o-y to USD 6
Slide 7: Consolidated Backlog Breakdown – September 2022
Consolidated Backlog Breakdown – 30 September 2022 Backlog by Geography Backlog by Sector Other 4.5% Commercial 27.6% USA 24.9% Infrastructure Saudi Arabia 57.9% 2.2% Egypt Industrial 68.4% 14.5% Backlog by Client Backlog by Currency(1) EGP Private 27.8% 27.4% FCY & FCY- Public priced 72.6% 72.2% (1
Slide 8: Evolution of Backlog by Geography
Evolution of Backlog by Geography Consolidated Backlog by Geography (Excluding BESIX) $4.3 bn $5.4 bn $5.4 bn $6.1 bn $5.7 bn 0.2 0.1 0.1 0.2 1.3 0.9 1.4 1.2 0.2 0.1 0.2 0.3 0.3 1.0 0.4 4.2 4.3 3.9 3.9 2.9 2018 2019 2020 2021 9M 2022 Egypt Other USA Saudi Arabia Note: Backlog/new awards chart exclud
Slide 9: Investment in BESIX Group
Investment in BESIX Group Highlights ▪ An international Belgian multiservice company with a leading position in construction, property development and concessions founded in 1909 ▪ OC acquired 50% of BESIX in a joint leverage buyout in partnership with BESIX management in 2004 ‒ Held value as an inv
Slide 10: Pro Forma Snapshot Including 50% of BESIX – 9M 2022
Pro Forma Snapshot Including 50% of BESIX – 9M 2022 ▪ BESIX’s standalone backlog increased 11.8% y-o-y to EUR 5.5 billion as of 30 September 2022 ▪ New awards totaled approximately EUR 1.3 billion in Q3 2022, resulting in an increase of 6.9% y-o-y in 9M 2022 new awards to EUR 2.9 billion ▪ Standalon
Slide 11: Portfolio of Equipment Services, Building Materials, Facility Mgmt. and Infrastructure Assets
Portfolio of Equipment Services, Building Materials, Facility Mgmt. and Infrastructure Assets These subsidiaries and investments contributed USD 30.5 million to the Group’s total net income in 9M 2022 Company Ownership 9M 2022 Revenue Description ▪ A leading equipment importation, distribution and m
Slide 12: Proven Financing Capabilities
Proven Financing Capabilities ▪ Finance team previously secured and arranged debt for complex industrial and infrastructure projects worldwide across cement, fertilizer, power and infrastructure sectors, having historically raised ~USD 18.5 billion of financing and having strong relationships with E
Slide 13: Financial Section – 9M 2022 Results
Financial Section – 9M 2022 Results
Slide 14: Summary Income Statement
Summary Income Statement USD million Revenue by Geography – 9M 2022 9M 2022 9M 2021 Change Q3 2022 Q3 2021 Change USA Revenue 3,052.7 2,542.7 20.1% 1,138.1 857.7 32.7% 30.7% MEA 2,114.6 1,775.9 19.1% 738.0 587.2 25.7% USA 938.2 766.8 22.4% 400.1 270.5 47.9% EBITDA 150.1 146.2 2.7% 57.1 45.8 24.7% Ot
Slide 15: Net Cash Position
Net Cash Position Net cash position of USD 113.1 million as of 30 September 2022 Evolution of Debt and Cash (USD Million) Cash Total debt Net debt $506 $474 $462 $471 $403 $419 $375 $375 $382 $358 $357 $96 $115 $64 31 Dec 18 31 Dec 19 31 Dec 20 31 Dec 21 31 Mar 22 30 Jun 22 30 Sep 22 Debt and Equity
Slide 16: Income Statement
Income Statement USD million 9M 2022 9M 2021 Q3 2022 Q3 2021 Results Commentary Revenue 3,052.7 2,542.7 1,138.1 857.7 Revenue: Cost of sales (2,791.2) (2,300.3) (1,043.5) (779.8) ▪ Consolidated revenue increased 32.7% y-o-y to USD Gross profit 261.5 242.4 94.6 77.9 1,138.1 million in Q3 2022 and 20.
Slide 17: Balance Sheet
Balance Sheet USD million 30 Sep 2022 31 Dec 2021 Results Commentary ASSETS Non-current assets Non-current assets ▪ Total investment in associates includes BESIX at an equity Property, plant and equipment 180.0 199.2 value of USD 366.4 million Goodwill 27.7 13.8 Current assets: Trade and other recei
Slide 18: Balance Sheet
Balance Sheet USD million 30 Sep 2022 31 Dec 2021 Results Commentary EQUITY Equity: Share capital 116.8 116.8 ▪ The movement in reserves relates primarily to currency Share premium 480.2 480.2 translation differences Reserves (354.9) (305.4) Liabilities: Retained earnings 377.8 346.9 ▪ Trade and oth
Slide 19: Cash Flow Statement
Cash Flow Statement USD million 30 Sep 2022 30 Sep 2021 Results Commentary Cash flow used in operating activities: Net profit for the period 70.2 84.2 ▪ Positive operating cash flow of USD 61.1 million in Q3 2022 Adjustments for: ▪ Q3 and Q2 2022 operating cash flow did not compensate for Depreciati
Slide 20: Cash Flow Statement
Cash Flow Statement USD million 30 Sep 2022 30 Sep 2021 Results Commentary Cash flow used in investing activities: Investments in PPE (53.6) (41.3) ▪ Cash flow used in investing activities of USD 9.6 million in Acquisition of subsidiaries, net of cash acquired (28.5) - Q3 2022 and USD 74.9 million i
Slide 21: Appendix
Appendix
Slide 22: Board of Directors
Board of Directors Chairman CEO Jérôme Guiraud Osama Bishai Non-Executive Chairman Executive Board Member Johan Beerlandt Sami Haddad Nada Shousha Wiktor Sliwinski Renad Younes Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Three committees established: Audit Committee, Remune
Slide 23: Entrepreneurial Track Record
Entrepreneurial Track Record Creating Shareholder Value ▪ Shareholder return: driven by strong longstanding leadership along with investment vision of principal shareholders ▪ Strategy to focus on infrastructure investments/concessions, Operation & Maintenance (O&M) contracts and complementary servi
Slide 24: Longstanding Position as Global Contractor of Choice
Longstanding Position as Global Contractor of Choice Track Record and Competitive Strengths ▪ Tradition: construction has been the core business since inception in 1950 – Orascom Construction PLC is now a leading global company employing c.60,000 people, with over 70 years of experience in MENA mark
Slide 25: Group Strategy Aimed at Delivering Top and Bottom Line Growth
Group Strategy Aimed at Delivering Top and Bottom Line Growth The Group has focused on creating shareholder value in the process of becoming a leading private sector contractor and an incubator of high-value businesses Strengthen EPC Market and Geographic Position Value Accretive Investment and O&M
Slide 26: Important Notice and Disclaimer
Important Notice and Disclaimer This document has been provided to you for information purposes only. This document does not constitute an offer of, or an invitation to invest or deal in, the securities of Orascom Construction PLC (the “Company”). The information set out in this document shall not f
Slide 27: Contact Investor Relations
Contact Investor Relations: Hesham El Halaby Director [email protected] T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com
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