Grupo Ezentis SA · BME:EZE
Grupo Ezentis SA — Q1 2020 Earnings Presentation
33 slides from Grupo Ezentis SA's earnings presentation, May 2020
Slide 1: First Quarter 2020 Results Presentation
WORKING FOR THE FUTURE First Quarter 2020 Results Presentation May 2020
Slide 2: Index
INDEX COVID 19 Management 01 Sector/Market 06 Financial Results 09 Outlook 2022-2023 18 Sustainability 21 Conclusions 24 Annexes 26
Slide 3: COVID 19 Management
COVID 19 01 MANAGEMENT
Slide 4: Essential Activity in All Geographies
02 COVID 19 MANAGEMENT ESSENTIAL ACTIVITY IN ALL GEOGRAPHIES EZENTIS OPERATES AND MAINTAINS TELECOMMUNICATIONS AND ENERGY INFRASTRUCTURES THAT SUPPORT THE PRODUCTIVE AND SOCIAL ACTIVITY Working for the Future Health and Safety Protocol for Continuity of essential services employees Resilience of a s
Slide 5: Overall Strategy Against COVID
03 COVID 19 MANAGEMENT OVERALL STRATEGY AGAINST COVID 19 EMPLOYEES CONTINUITY OF SERVICE Working for the Future Health and safety protocols for field and Service identified as essential office staff Continuous communication and Little significant impact on the health and collaboration with clients a
Slide 6: Group Activity First Quarter 2020
04 COVID 19 MANAGEMENT GROUP ACTIVITY FIRST QUARTER 2020 Activity Indicators: TELECOMMUNICATION AND ENERGY Working for the Future Work Orders: 977,127 ACTIVITIES (telecommunications and energy) Towers installed: 5,920 Normal development of the Building Units covered by fiber optic activity adapting
Slide 7: Evolution of Latin American Currencies
05 COVID 19 MANAGEMENT EVOLUTION OF LATIN AMERICAN CURRENCIES Exchange Rate Evolution 2020 - Base 100 Working for the Future Depreciation of Latin American currencies against COVID 19 the euro since the start of the pandemic PEN -2.39% Greater effect on the income of Brazil and Chile. ARS -5.19% Oth
Slide 8: Sector / Market
SECT O R / 06 MARK E T
Slide 9: Trends and Keys of the Telecommunication Market
07 SECTOR / MARKET TRENDS AND KEYS OF THE TELECOMMUNICATION MARKET The health crisis has contributed to value the use of communication and digitization infrastructures to satisfy the increase in the use of telework, electronic commerce, on line education and entertainment Working for the Future MARK
Slide 10: Energy Market Trends and Keys
08 SECTOR / MARKET ENERGY MARKET TRENDS AND KEYS Energy transition for the containment of climate change, reduction of energy poverty and as a lever for competitiveness Working for the Future in industrial and service activities MARKET KEYS Need to decarbonize to avoid the Planet's temperature rise
Slide 11: Financial Results
FINANCIAL 09 RESULTS
Slide 12: Main Magnitudes 1Q 2020
10 FINANCIAL RESULTS MAIN MAGNITUDES 1Q 2020 1.8x -16.1% € 796 M REVENUES € 97.8 M BACKLOG multi-year o/revenues Working for the Future o/1Q 2019 last 12 contracts months (LTM) vs -10.6% EBITDA 10.3% EBITDA € 10.7 M 11.0% o/1Q2019 MARGIN in 1Q2019 NET CASH vs 2.4x € 17 M NET DEBT 2.6x POSITION in 1Q
Slide 13: Revenues by Country and Sector
11 FINANCIAL RESULTS REVENUES BY COUNTRY AND SECTOR: GREATER PRESENCE IN EUROPE Revenues Generation by Country Revenues Generation by Sector 1Q Working for the Future
Slide 14: Diversified Customer Base with Main Operators and Utilities
12 FINANCIAL RESULTS DIVERSIFIED CUSTOMER BASE WITH THE MAIN OPERATORS AND UTILITIES OF THE SECTOR Working for the Future Diversified client Average 3-5 years portfolio, with the main multi-year contracts operators and utilities in the sector Renewal of >90% of Coverage in its main strategic contrac
Slide 15: Revenues and EBITDA Evolution
13 FINANCIAL RESULTS REVENUES AND EBITDA EVOLUTION Revenues €M -8.2% Var. Constant Currency -16.1% Less activity in installation and maintenance in homes, limitation to Working for the Future 116.6 the portability of telephony and restrictions in "cut and replacement" -9.5 97.8 in energy due to the
Slide 16: Profit and Loss Account 1Q 2020
14 FINANCIAL RESULTS PROFIT AND LOSS ACCOUNT 1Q 2020 1Q20 1Q19 Operating Revenues 97.8 116.6 Working for the Future EBITDA 10.7 12.0 EBITDA Margin 11.0% 10.3% Amortization and provisions (8.2) (7.3) EBIT 2.5 4.7 Revenues and financial expenses (4.1) (4.0) Currency exchanges 0.2 0.5 Non-recurring res
Slide 17: Resilient Business Model
15 FINANCIAL RESULTS RESILIENT BUSINESS MODEL Revenues Evolution €M Backlog Evolution €M Working for the Future TACC 9% 455.2 934.4 440.4 436.4 848.4 398.9 775.3 791.0 795.7 303.6 316.5 257.3 539.6 422.5 2014 2015 2016 2017 2018 2019 1Q20 2014 2015 2016 2017 2018 2019 1Q20 LTM Backlog/ Revenues 1.6x
Slide 18: Net Financial Debt: Main Maturity in 2025
16 FINANCIAL RESULTS NET FINANCIAL DEBT: MAIN MATURITY IN 2025 1Q20 LTM 2019 FY Net Financial Debt (NFD) IFRS16 156.6 147.4 61% Debt maturing since 2023 Working for the Future Financial Debt 173.7 170.9 Cash and other equivalent assets 17.0 23.5 5.9% Average cost 1Q20 vs 6.5% 1Q19 NFD Ratio/EBITDA (
Slide 19: Solid Generation of Operating Cash
17 FINANCIAL RESULTS SOLID GENERATION OF OPERATING CASH CASH FLOW LAST12 MONTHS 1Q20 LTM 1Q19 LTM EBITDA pre IFRS16 42.5 32.0 Working for the Future Changes in working capital and other movements (6.3) (6.8) Operating Cash Flow 36.2 25.2 Solid generation of operating cash: +44% LTM Payments related
Slide 20: Outlook 2022-2023
OUTLOOK 18 20 22- 2023
Slide 21: Outlook for 2022-2023
19 OUTLOOK 2022-2023 OUTLOOK FOR 2022-2023 Working for the Future FINANCIAL (1) DIVERSIFICATION GROWTH EBITDA MARGIN The strategic GEOGRAPHY positioning of Ezentis 65% - 70% 8% - 9% allows us to take REVENUES advantage of the EUROPE DEBT RATIO opportunities in the < 2x EBITDA Telecommunications SECT
Slide 22: Attractive Strategic Positioning
20 OUTLOOK 2022-2023 ATTRACTIVE STRATEGIC POSITIONING 60 years of experience and reference in the market Working for the Future Profitable business management: cash generation of € 120 M since 2015 (see Annex III) Maximization of volume and recurrence through long-term contracts in diversified marke
Slide 23: Sustainability
21 SUSTAINABILITY
Slide 24: Focused on Sustainability
22 SUSTAINABILITY FOCUSED ON SUSTAINABILITY PERFORMANCE IN 2019 ENVIRONMENTAL SOCIAL GOVERNANCE Working for the Future ASPECTS ASPECTS ASPECTS EMISSIONS INDEFINITE CONTRACTS 34,453 tCO2 e (-9% 78% (+1% CNMV GOOD GOVERNANCE CODE o/2018) o/2018) 100% compliance VEHICLE ACCIDENT CONSUMPTION FREQUENCY 1
Slide 25: Committed to Sustainability
23 SUSTAINABILITY COMMITTED TO SUSTAINABILITY SUSTAINABILITY PLAN FOR 2022 Working for the Future Inclusion in benchmark Sustainability Supplier approval with sustainability criteria Indexes (FTSE4GOOD, VIGEO...) Safety audits of contractors and Obtaining Score B in the CDP questionnaire subcontract
Slide 26: Conclusions
24 C ON C LUS ION S
Slide 27: Conclusions
25 CONCLUSIONS CONCLUSIONS Ezentis as an Essential Service Working for the Future Moderate Impact by COVID19 Visibility in 2020 and following years Cash Position of €17M 1Q20: 11% EBITDA Margin Outlook 2022-2023 APPRECIATE THE COMMITMENT OF ALL OUR EMPLOYEES IN THE CONTINUITY OF ESSENTIAL TELECOMMUN
Slide 28: Annexes
iS EZE ANNEXES
Slide 29: Share Performance vs. Indices During COVID19 Crisis
27 ANNEX I SHARE PERFORMANCE VS. INDICES DURING THE COVID19 CRISIS PERIOD Working for the Future EZENTIS +33,0% IBEX SMALL +10,4% IBEX MEDIUM -2,0% IBEX 35 -2,3%
Slide 30: Consolidated Balance 1Q20
28 ANNEX II CONSOLIDATED BALANCE 1Q20 Working for the Future €M 1Q20 2019 1Q20 2019 Equity 2,628 14,312 Non-current assets 190,136 195,377 Non-current liabilities 156,231 160,309 Tangible and intangible assets 127,564 131,270 Financial debt 116,319 120,093 Long-term financial investments 16,672 17,8
Slide 31: M€ of Cash Generation in the Last Years
29 ANNEX III € 120 M OF CASH GENERATION IN THE LAST 5 YEARS 119.4 Working for the Future -31.4 -105.2 23.5 -83.6 41.6 42.8 16.8 33.3 6.1 -13.6 Operating Org./Inorg. 2014 Cash Interests Capital Incr. Debt Var. 2019 Cash Cash Flow/WC Growth 2019 Accumulated 2014-2019
Slide 32: Legal Warning
30 LEGAL WARNING LEGAL WARNING This document has been prepared by EZENTIS, only for use during the Presentation of RESULTS AND PERSPECTIVES 2019 and for institutional and professional investors of the same sector. Consequently, it may not be disclosed or made public or used by any other natural or l
Slide 33: Working for the Future
WORKING FOR THE FUTURE [email protected] [email protected] www.ezentis.com Linkedin Ezentis App Ezentis Investor App Ezentis Investor Relations para iOS Relations para Android