Indra Sistemas, S.a. Class A · BME:IDR
Indra Sistemas, S.a. Class A — Indra — Non-Deal Roadshow (May 2012)
37 slides from Indra Sistemas, S.a. Class A's roadshow presentation, May 2012
Slide 1: A Leading Tech Company
A LEADING TECH COMPANY May 2012
Slide 2: Forward-looking statements disclaimer
This document contains statements including forward looking statements regarding future performance of the A LEADING TECH COMPANY Company. Analyst and investors must be aware that such statements do not constitute any guarantee about the future performance of the Company and involve risks and uncert
Slide 3: Index
INDEX Who we are What we achieved in 2011 Brief look at 1Q12 A LEADING TECH COMPANY Outlook 3
Slide 4: Who we are – Indra highlights
WHO WE ARE INDRA HIGHLIGHTS A technology A technology company company providing that provides businessreal time,ITsmart, solutions, servicesefficient and integrated systemsand solutions to customers servicesall around the world to clients all around the world €2.7bn revenues in 2011 Public Administr
Slide 5: Differential offering based on solutions
WHO WE ARE – INDRA SNAPSHOT DIFFERENTIAL OFFERING BASED ON SOLUTIONS Border control Simulation Smart grid ATM Application Air Defense Management Systems Tax collecting system Core insurance Voting IT Outsourcing Aerospace Cyber security A LEADING TECH COMPANY BPO Cloud computing Analytics Solutions
Slide 6: Innovative and leading clients in all industries
WHO WE ARE – INDRA SNAPSHOT INNOVATIVE AND LEADING CLIENTS IN ALL INDUSTRIES Saudi Railways Telecom & Media DFS Transport & Traffic Financial Services Security & Defense Public Administrations A LEADING TECH COMPANY & Healthcare Energy & Industry Revenues from 42% key accounts Recurrent sales 56% in
Slide 7: Half of the business is international
WHO WE ARE – INDRA SNAPSHOT HALF OF THE BUSINESS IS INTERNATIONAL Europe & USA Latam Spain Asia, Middle East & Others A LEADING TECH COMPANY 41% of workforce in 45 More than 12,000 international subsidiaries professionals in Latam 7 2011 Pro-forma figures
Slide 8: Leadership and global position
WHO WE ARE – INDRA SNAPSHOT LEADERSHIP AND GLOBAL POSITION World leader in air traffic management Global player in transportation and land traffic 140 utilities in 40 countries use Indra technology solutions Security and national defense in 5 continents 240 million mobile telco clients managed with
Slide 9: A growth company even through the downturn
WHO WE ARE – HISTORICAL PERFORMANCE A GROWTH COMPANY (EVEN THROUGH THE 3.100 DOWNTURN) +5% +2% +6% +10% 2007 2008 2009 2010 2011 16% 17% (1) 11% 10% 11% 7% 3% 7% Corporate clients A LEADING TECH COMPANY -3% -3% -10% Public clients % 2008 Annual sales growth 2009 2010 Domestic sales growth 2011 Inter
Slide 10: High margins thanks to our solutions' offering
WHO WE ARE – HISTORICAL PERFORMANCE …WITH HIGH MARGINS THANKS TO OUR SOLUTIONS’ OFFERING… EBIT margin (1) (2) Contribution margin Solutions A LEADING TECH COMPANY Services (2) 10 (1) Reported after restructuring costs (€33M) (2) Reported after Galyleo & Politec acquisitions
Slide 11: Consistently above European IT sector
WHO WE ARE – HISTORICAL PERFORMANCE …CONSISTENTLY ABOVE EUROPEAN IT SECTOR Reported EBIT margin (%) 13.0% 12.0% 11.0% (1) (3) (2) 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% A LEADING TECH COMPANY 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011e (1) Reported after integration costs of Soluziona & Aze
Slide 12: Dividends, a key part of our equity story
WHO WE ARE – HISTORICAL PERFORMANCE DIVIDENDS, A KEY PART OF OUR EQUITY STORY 62% 59% 55% 55% 55% 55% 55% 6,9% 35% 5,3% 35% 0.35 29% 4,0% 3,7% 0.34 2,7% 2,4% 2,3% 1,7% 1,6% 1,5% 0.61 0.66 0.68 0.68 0.43 0.50 0.39 0.163 0.195 0.109 A LEADING TECH COMPANY Dividends 2003 2004 2005 2006 2007 2008 2009 2
Slide 13: Index
INDEX Who we are What we achieved in 2011 A LEADING TECH COMPANY Brief look at 1Q12 Outlook 13
Slide 14: Looking back at 2011: a tough market
WHAT WE ACHIEVED IN 2011 LOOKING BACK AT 2011: A TOUGH MARKET Difficult market and industry conditions … Weak developed markets with lower demand for solutions Pricing pressures Increased global competition Declining H2 … but, with some sunshine rays: Strong growth in emerging markets with
Slide 15: Meeting guidance
WHAT WE ACHIEVED IN 2011 MEETING GUIDANCE Guidance 2011 Real 2011 (as of January 2011) (ex Galyleo & Politec acquisitions) ∆ Revenues > 2% + 3% > 2010 +2% Order Intake Book-to-bill > 1.0x Book-to-bill = 1.11x EBIT Margin ≥ 10.5% 10.5% Guidance 2011 Real 2011 A LEADING TECH COMPANY (including Politec
Slide 16: Geography: shaping our global presence
WHAT WE ACHIEVED IN 2011 GEOGRAPHY: SHAPING OUR GLOBAL PRESENCE Acquisition of Politec in Brazil 5,000 professionals Latam Strong position in Energy, Financial Services and Public Administration verticals Relevant synergies New subsidiaries: platform for future growth Asia, Middle Total
Slide 17: Focused investments for emerging demand for solutions
WHAT WE ACHIEVED IN 2011 FOCUSED INVESTMENTS TO TAKE ADVANTAGE OF THE EMERGING DEMAND FOR SOLUTIONS Gross Intangible Main Investment Areas 2011 CAPEX evolution 84 Smart Systems Information Technologies 69 51 Energy Financial Services 38 3,1% 2,7% 1,6% 2,0% Transport and Traffic eGoverment 2008 2009
Slide 18: 2011 results: P&L main headlines
WHAT WE ACHIEVED IN 2011 2011 RESULTS: P&L MAIN HEADLINES Ex Galyleo Variation Reported (1) & Politec vs. 2010 Order Intake (€M) 2,927 +2% 2,976 Revenues (€M) 2,626 +3% 2,688 EBIT margin 10.5% -0.7 pp 10.0% Net profit (€M) 191 +1% 181 A LEADING TECH COMPANY 18 (1) Reported after Galyleo & Politec ac
Slide 19: 2011 solutions & services evolution
WHAT WE ACHIEVED IN 2011 2011 SOLUTIONS & SERVICES EVOLUTION Excluding Galyleo & Politec ∆ 2011 Sales 2010 ∆ 2011 Sales Book to Bill Reported Sales 2011 (% weight) vs. 2010 2011 sales (% weight) vs. 2010 Solutions 71% -1% (*) 1.05x -1% 67% Services 29% +12% 1.27x +20% 33% A LEADING TECH COMPANY 19 (
Slide 20: 2011 revenues growth by vertical
WHAT WE ACHIEVED IN 2011 2011 REVENUES GROWTH BY VERTICAL Excluding Galyleo & Politec ∆ 2011 Var Spain Int. Reported sales vs. 2010 vs. 2010 Telecom & Media +22% +24% Transport & Traffic +8% +8% Energy & Industry +7% +12% Healthcare & PPAA +4% +9% Financial Services +1% +5% A LEADING TECH COMPANY Se
Slide 21: 2011 domestic & international evolution
WHAT WE ACHIEVED IN 2011 2011 DOMESTIC & INTERNATIONAL EVOLUTION Excluding Galyleo & Politec ∆ 2011 Sales 2010 ∆ 2011 Sales Book to Bill Reported Sales 2011 (% weight) vs. 2010 2011 sales (% weight) vs. 2010 Domestic 61% -3% 1.04x -3% 57% International 39% +11% 1.21x +17% 43% Europe & USA 18% +1% 1.
Slide 22: 2011 results: other headlines
WHAT WE ACHIEVED IN 2011 2011 RESULTS: OTHER HEADLINES Ex Galyleo Variation Reported (1) & Politec vs. 2010 Net Working Capital 100 7 98 (DoS) CAPEX (€M) 108 37 111 (net of subsidies) Net debt (€M) 411 136 514 A LEADING TECH COMPANY 22 (1) Reported after Galyleo & Politec acquisitions
Slide 23: Net working capital according to expectations
WHAT WE ACHIEVED IN 2011 NET WORKING CAPITAL ACCORDING TO EXPECTATIONS Net working capital excluding Galyleo & Politec at 100 DoS, in line with initial expectations Worse-than-expected performance of Regional Governments in Spain; end-of-year collections compensated International clients and S
Slide 24: Index
INDEX Who we are What we achieved in 2011 A LEADING TECH COMPANY Brief look at 1Q12 Outlook 24
Slide 25: 1Q12 results: P&L main headlines
BRIEF LOOK AT 1Q12 1Q12 RESULTS: P&L MAIN HEADLINES Variation €M (1) Organic (2) vs. 2011 (1) Order Intake (€M) 1,222 +21% +13% Backlog (€M) 3,710 +14% +11% Revenues (€M) 714 +9% +1% ---- EBIT margin (3) 8.4% -2.1 pp A LEADING TECH COMPANY Adjusted Net Profit ---- 40 -20% (€M) (3) (1) Reported after
Slide 26: 1Q12 revenues growth by vertical
BRIEF LOOK AT 1Q12 1Q12 REVENUES GROWTH BY VERTICAL Var Spain (2) Int. (2) vs. 2011 (1) Energy & Industry +24% Financial Services +18% Healthcare & PPAA +17% Telecom & Media +10% Security & Defense -3% A LEADING TECH COMPANY Transport & Traffic -4% Total +9% (1) Reported after Galyleo & Politec acqu
Slide 27: Index – Outlook
INDEX Who we are What we achieved in 2011 A LEADING TECH COMPANY Brief look at 1Q12 Outlook Outlook 27
Slide 28: A challenging environment in the next two years
OUTLOOK A CHALLENGING ENVIRONMENT IN THE NEXT TWO YEARS Uncertain macro conditions 2012 – 2013, with very tough conditions in Spain Continued pricing pressures and increased competition A LEADING TECH COMPANY Strong overall demand for services and for solutions in emerging markets 28
Slide 29: Uncertain macro conditions drive market dynamics
OUTLOOK UNCERTAIN MACRO CONDITIONS DRIVE MARKET DYNAMICS IN 2012 AND BEYOND Market dynamics • Weaker overall global growth in 2012 Asymmetric market • Challenging macro environment in Spain development • Differential growth rates in emerging markets • Pockets of growth in developed markets Demand fo
Slide 30: Implementation of ongoing programs defend profitability
OUTLOOK IMPLEMENTATION OF ONGOING PROGRAMS DEFEND PROFITABILITY Sources of margin pressure Levers to defend margins Weak pricing environment Redesigned delivery platforms Negative impact of business mix Leverage CAPEX invested in evolution (services vs. solutions) solutions Cost of international gro
Slide 31: A four legged efficiency program
OUTLOOK A FOUR LEGGED EFFICIENCY PROGRAM Network of specialized centers Launch Software Automation and industrialization IGD 1Q 2012 Increased production flexibility Standardization and serialization Launch Control Systems Globablization of Supply Chain TGP 2Q 2012 Reduced time to market
Slide 32: Guidance 2012 and mid term goals: committed to growth
OUTLOOK- GUIDANCE 2012 AND MID TERM GOALS TO 2014 COMMITTED TO GROWTH … 2012 Guidance Mid term goals to 2014 ∆ +6,5% / +7,5% Positive growth ex Galyleo & Politec Revenues Positive growth every year Relevant growth in international markets ∆ +8% / +9% after Park Air acquisition in April 2012 Order In
Slide 33: Guidance 2012 and mid term goals: high profitability
OUTLOOK- GUIDANCE 2012 AND MID TERM GOALS TO 2014 … WITH HIGH PROFITABILITY … 2012 Guidance Mid term goals to 2014 Recurrent Progressively reaching EBIT 8% - 9% margin 10% in 2014 Extraordinary 1% of revenues in 2012; Expenses None 0.5% in 2013 A LEADING TECH COMPANY 33
Slide 34: Guidance 2012 and mid term goals: sound balance sheet
OUTLOOK- GUIDANCE 2012 AND MID TERM GOALS TO 2014 … AND SOUND BALANCE SHEET 2012 Guidance Mid term goals to 2014 Net Working 110 – 100 DoS Capital CAPEX 65 – 75M€ annually (net of subsidies) A LEADING TECH COMPANY 34
Slide 35: Acquisition of Park Air Systems Norway
KEY HIGHLIGHTS ACQUISITION OF PARK AIR SYSTEMS NORWAY Leading worldwide player in the Air Traffic Management (ATM) with proprietary Solutions in Communication, Navigation aids, and Airport Surveillance Strengthening Indra’s Solutions and ATM business with highly complementary offering Revenues
Slide 36: Playing to win
OUTLOOK Playing to win A LEADING TECH COMPANY 36
Slide 37: A LEADING TECH COMPANY
Avda. de Bruselas 35 A LEADING TECH COMPANY 28108 Alcobendas, Madrid España T +34 91 480 50 00 F +34 91 480 50 80 www.indracompany.com 37