Orascom Construction Plc · EGX:ORAS
Orascom Construction — H1 2019 Earnings Presentation
18 slides from Orascom Construction's earnings presentation, Aug 27, 2019
Slide 1: H1 2019 Results Presentation
Burullus Combined Cycle Power Plant – Egypt H1 2019 Results Presentation 27 August 2019
Slide 2: Table of Contents
Table of Contents Section Page Financial Highlights 1 Summary Financials 2-3 Consolidated Backlog 4-6 Pro Forma Snapshot Including BESIX 7 Construction Materials and Investments 8 Financial Statements 10-14
Slide 3: Financial Highlights
Financial Highlights ▪ Consolidated EBITDA increased 26.8% to USD 142.4 million and pro forma EBITDA including 50% in BESIX increased 15.6% to USD 176.0 million in H1 2019 ▪ Net income attributable to shareholders of USD 31.3 million in Q2 2019 and USD 61.5 million in H1 2019 ▪ A return to a net cas
Slide 4: Summary Income Statement
Summary Income Statement USD million Revenue by Geography – H1 2019 H1 2019 H1 2018 Change Q2 2019 Q2 2018 Change USA Revenue 1,495.7 1,506.9 (0.7)% 790.1 750.1 5.3% 25.3% MENA 1,116.7 965.1 15.7% 579.3 477.7 21.3% Other MENA USA 379.0 541.8 (30.0)% 210.8 272.4 (22.6)% 0.5% KSA EBITDA 142.4 112.3 26
Slide 5: Net Cash Position
Net Cash Position Return to a net cash position of USD 69.2 million as of 30 June 2019 Evolution of Net Debt (USD Million) Cash Total debt Net debt $575 $507 $511 $466 $439 $434 $432 $403 $398 $369 $375 $329 $303 $261 1 Jan 15 31 Dec 15 31 Dec 16 31 Dec 17 31 Dec 18 31 Mar 19 30 Jun 19 Debt and Equi
Slide 6: Consolidated Backlog Growth
Consolidated Backlog Growth Current backlog size and quality supports the Group’s revenue and profitability targets Focus on pursuing quality projects where the Group has a competitive edge and is confident in the source of funding Evolution of Consolidated Backlog(1) ▪ Consolidated backlog (excludi
Slide 7: Backlog Diversification
Backlog Diversification Backlog by Geography Backlog by Sector Backlog by Client Other 3.8% Private 15.7% USA Commercial 24.8% 31.2% UAE 1.1% Saudi Arabia Egypt Infrastructure Public 2.8% 67.5% Industrial 61.8% 84.3% 7.1% Backlog by Brand Backlog by Currency Currency Exposure Contrack Watts 6.2% ▪ 5
Slide 8: Evolution of Backlog by Geography
Evolution of Backlog by Geography Consolidated Backlog by Geography (Excluding BESIX) $5.8 bn $6.7 bn $5.3 bn $4.6 bn $4.3 bn $4.6 bn 1.0 1.2 0.7 0.5 0.2 0.1 - 0.1 1.4 0.2 - 0.1 1.1 1.4 0.9 1.1 0.2 1.0 0.1 0.2 0.1 0.2 1.0 0.3 0.4 0.2 0.3 0.2 3.2 3.1 3.1 2.8 2.9 2.0 2014 2015 2016 2017 2018 H1 2019 E
Slide 9: Pro Forma Snapshot Including BESIX – H1 2019
Pro Forma Snapshot Including BESIX – H1 2019 ▪ Standalone backlog increased 44.7% y-o-y to EUR 4.8 billion in H1 2019(1) ▪ New awards increased 77.6% y-o-y to EUR 1.0 billion in Q2 2019 and 8.4% y-o-y in H1 2019 ▪ BESIX standalone net cash position of EUR 58.8 million ▪ BESIX book value of USD 392.9
Slide 10: Construction Materials and Investments
Construction Materials and Investments Investments are benefitting from increased construction and industrial activity as well as operational synergies Company Ownership H1 2019 Revenue Description ▪ Manufactures and supplies fabricated steel products in Egypt and North Africa – total capacity of 12
Slide 11: Financial Statements
Financial Statements
Slide 12: Income Statement
Income Statement USD million H1 2019 H1 2018 Q2 2019 Q2 2018 Results Commentary Revenue 1,495.7 1,506.9 790.1 750.1 Revenue: Cost of sales (1,305.9) (1,330.1) (691.6) (663.3) ▪ MENA comprised 73% and 75% of total revenue in Q2 2019 Gross profit 189.8 176.8 98.5 86.8 and H1 2019, respectively, while
Slide 13: Balance Sheet
Balance Sheet USD million 30 June 2019 31 Dec 2018 Results Commentary ASSETS Non-current assets Non-current assets ▪ Total investment in associates includes BESIX at an equity Property, plant and equipment 174.4 159.3 value of USD 392.9 million Goodwill 13.8 13.8 Current assets: Trade and other rece
Slide 14: Balance Sheet
Balance Sheet USD million 30 June 2019 31 Dec 2018 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 (307.3) (335.6) Liabilities: Retained earnings 194.0 170.5 ▪ Trade and ot
Slide 15: Cash Flow Statement
Cash Flow Statement USD million 30 June 2019 30 June 2018 Results Commentary Cash flow used in operating activities: Net profit 67.2 87.0 ▪ Positive operating cash of USD 40.2 million in H1 2019 and USD 140.5 million in Q2 2019 Adjustments for: Depreciation 24.8 19.6 Interest income (including gains
Slide 16: Cash Flow Statement
Cash Flow Statement USD million 30 June 2019 30 June 2018 Results Commentary Cash flow used in investing activities: Investment in PPE (17.0) (27.6) ▪ Investments in PPE in of USD 17.0 million in H1 2019 and Proceeds from sale of PPE 4.7 1.3 USD 3.7 million in Q2 2019 mainly in MENA Cash flow used i
Slide 17: 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 18: www.orascom.com
Contact Investor Relations: Hesham El Halaby [email protected] T: +971 4 318 0900 NASDAQ Dubai: OC EGX: ORAS www.orascom.com