2019 Year-End Report

0 2 . 2 5 . 2 0 2 0

DISCLAIMER

  • This document has been prepared by Global Dominion Access, S.A. ("Dominion"), and is for information purposes only. No reliance may or should be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. This document and the information contained herein are strictly confidential and are being shown to you solely for your information. The information may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within or outside such person's organization or firm) or published in whole or in part, for any purpose or under any circumstances.
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  • The information and opinions contained in this document are provided as at the date of the document and are subject to verification, completion and change without notice. Neither Dominion nor any of its parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's respective directors, officers, employees, agents, affiliates or advisers, undertakes any obligation to amend, correct or update this document or to provide the recipient with access to any additional information that may arise in connection with it.

2 0 1 9 A N N U A L R E S U L T S

2019 highlights

S T R A T E G Y

&

E X E C U T I O N

B U S I N E S S E S

L O O K I N G T O W A R D S 2 0 2 0

Flawless track record, reinforced by 2019 results

  • All the objectives for 2019 set in the 2019-2022Strategic Plan have been achieved.
  • High levels of growth and profitability.
  • Maintaining our financial discipline with a high level of cash flow generation.

Important achievements in the implementation of our strategic value proposals

  • 360º Solutions: Growth in Asia - Energy x2 since 2017 - Positioned as a Digital Transformation partner.
  • B2B Services: Positioned as a Tier 1 supplier + Effective transition into power distribution lines (Energy).
  • B2C Services: Strong and profitable growth of the Smart House project - ⁓150K supplies achieved.
  • M&A: Acquisition of Bygging (Industrial Services and Solutions, India) and Flip (electricity and gas supplier).

2020 financial objectives reconfirmed

  • High visibility to meet our financial targets again in 2020.
  • First dividend distribution in 2020.

D O M I N I O N Confidential © Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

Index

  1. Strategy and Execution
  2. Businesses
    • 360 Solutions
    • B2B Services
    • B2C Services
  3. Looking towards 2020

D O M I N I O N Confidential © Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

Key financial figures

Adjusted Turnover (1)

EBIT

Net Income (3)

before PPAs amortization

(EBITA) (2)

€947m

€63m

€39m

(+14%)

(+18%)

(+20%)

Free Operating

Net Cash

RONA

Cash Flow(4)

Position

75% o/EBITA

€113m

25%

All the financial objectives for 2019 have been achieved

D O M I N I O N Confidential

(1)

Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

(3)

Net Income from Continuing Operations (recurrent), excluded discontinued operations

(2)

EBITA: EBITA: Net Operating Income + PPA's

(4)

Free Operating Cash Flow: EBITDA - difference between CAPEX and Amortization - NWC variation

© Dominion 2020

- Net Financial Income - Tax payment; (acquisitions excluded)

2 0 1 9 A N N U A L R E S U L T S

Other relevant figures

Workforce (1)

Corporate Structure

Backlog (2)

TOP 1 client

EPS

9,630

€27m

€609m

<6% on Adjusted

0.194 €

(35 countries)

(2,9% on Adjusted

Turnover (3)

Turnover (3))

D O M I N I O N Confidential

(1)

End of the year data.

(2)

Includes only contracts from the "Solutions" segment

© Dominion 2020

(3)

Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

2 0 1 9 A N N U A L R E S U L T S

Income Statement 2019

Income Statement (1)

2018

%

2019

(€m)

Turnover

1,084.1

+6%

1,149.3

Adjusted Turnover (2)

831.0

+14%

947.3

EBITDA (3)

72.4

+43%

103.7

% EBITDA on adjusted turnover

8.7%

11.0%

EBITA (3)

53.4

+18%

63.1

% EBITA on adjusted turnover

6.4%

6.7%

EBIT (3)

48.4

+17%

56.7

% EBIT on adjusted turnover

5.8%

6.0%

Net Income from Continuing Operations

32.6

+20%

39.2

% NI from Continuing Operations on adj, turnover

3.9%

4.1%

Net Income

27.2

+21%

32.9

% Net Income on adjusted turnover

3.3%

3.5%

  • Recurrent Income Statement: positive and negative non-recurrent impacts there are balanced
  • As an exception, affecting the Net Income, "Discontinued Operations" include a negative non-recurrent impact due to the monetary exchange differences of Brazil, which were already included in the Net equity and have no impact on FCF.

(1)

The consolidation perimeter in 2019 adds 11 months of results of Bygging India and 10 months of (3)

EBITDA: Net Operating Income + Depreciation; EBITA: Net Operating Income + PPA's

D O M I N I O N

Confidential

Alterna

amortization; EBIT: Net Operating Income

© Dominion 2020

(2)

Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

2 0 1 9 A N N U A L R E S U L T S

Turnover evolution

Adjusted Turnover evolution 2015-2019(1)

(€m)

+14%

947

831

719

613

525

2015

2016

2017

2018

2019

  • The high level of growth goes on: 14% total growth in 2019.
    1. Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

D O M I N I O N Confidential © Dominion 2020

Adjusted Turnover Evolution breakdown 2018-2019(1)

(€m)

+14%

+5.4%

+8.5%

+0.0%

947

831

2017

Inorganic

Organic

Forex

2018

  • 8.5% organic growth, exceeding the 5% growth target.

2 0 1 9 A N N U A L R E S U L T S

EBITA and Net Income Evolution

EBITA evolution 2015-2019(1)

(€m)

+18%

63

54

6.7%

43 (3)

6.4%

36

31

6.0%

5.8%

5.8%

2015

2016

2017

2018

2019

EBITA/Turnover(1)(2)

  • Total growth of 18%.
  • EBITA/Turnover margin improvement: 30 basis points improvement compared to 2018.
  1. EBITA: EBITA: Net Operating Income + PPA's

D O M I N I O N Confidential

(2) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

© Dominion 2020

Net Income evolution 2015-2019(4)

(€m)

+20%

39 (4)

33 (4)

4.1%

3.9%

26 (3)

22

3.6%

17

3.5%

3.2%

2015

2016

2017

2018

2019

Bº Neto/Turnover(2)

    • 20% growth, consistent with the guidance objectives for 2022.
    • Continuous operating leverage since 2015.
  1. Pro-Formaearnings to comply with IFRS 15 (according to CCAACC 2017)
  2. Net Income from Continuing Operations (recurrent), excluded discontinued operations

2 0 1 9 A N N U A L R E S U L T S

Sales distribution by segment

Services in 2019

€831m

€947m

Solutions in 2019

(62%)

37%

38%

(38%)

Contribution Margin

(1):

63%

62%

Contribution Margin (1):

12.6%

15.9%

2018

2019

Services

Solutions

S E R V I C E S

T O T A L

S O L U T I O N S

2018

2019

2018

2019

2018

2019

Turnover (€m) (2)

522.2

588.5

831.0

947.3

308.8

358.8

Turnover (€m) (2)

%

62.8%

62.1%

37.2%

37.9%

%

Contribution Margin (€m) (1)

47.0

74.1

99.5

131.1

52.5

57.0

Contribution Margin (€m) (1)

%

9.0%

12.6%

12.0%

13.8%

17.0%

15.9%

%

(1) Contribution Margin: EBITDA before corporate structure and central administration costs D O M I N I O N Confidential (2) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

© Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

Sales distribution by geography and activity field

Adjusted Turnover distribution by geography

Asia & Oceania

12%

(11%) (1)

Solutions

6% (6)

Services

6% (5)

Solutions

17% (17)

Services

Europe & Africa

America

44% (45)

59%

29%

(60%) (1)

(29%)

(1)

Services

13% (12)

Solutions

15% (15)

Adjusted Turnover distribution by activity field

Energy 11%

(9%) (1)

T&T 48%

(50%) (1)

Industry 41%

(41%) (1)

(1) 2018 data

D O M I N I O N Confidential © Dominion 2020

R E S U L T A D O S 2 0 1 7

2 0 1 9 A N N U A L

Y

R E S U L T S

B A L A N C E

D E U D A

Balance sheet and Net Financial Debt

Balance sheet

2018

2019

(€m)

Fixed assets

407.9

472.6

Net Working Capital

(179.1)

(170.3)

Total Net Assets

228.8

302.3

Net Equity

317.8

353.7

Net Financial Debt(1)

(105.7)

(113.4)

Others

16.7

62.1

Total Net Equity and

228.8

302.3

Liabilities

Debt

2018

2019

(€m)

Gross debt

131

88

Liquid assets and equivalents

(237)

(201)

Net Financial Debt(1)

(106)

(113)

NFD / EBITDA

<0

<0

€30m of earn outs, payable from 2020 to 2024.

Net Cash position since 2016

D O M I N I O N Confidential

(1) Net Financial Debt: debt with Banks and other financial institutions -cash and equivalents

© Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

Cash Flow conversion

Cash Flow conversion analysis

2019

(€m)

EBITA (1)

63.1

Organic CAPEX - Amortization

(3.6)

WC organic variation

0.8

Net Financial Result

(7.6)

Taxes

(6.5)

Other variations

0.8

Net Operating Cash Flow (2)

47.1

Operating Net Cash Flow Conversion Rate (2)

75%

Acquisitions 2019 (including acquired net debt)

(13.7)

Net WC from acquisitions

(9.6)

Payments related to past years acquisitions (earn outs)

(10.8)

Financial Investments

(4.7)

Dividends paid to minority interests

(0.6)

Free Cash Flow

7.7

Net Financial Debt 2018

(105.7)

Net Financial Debt 2019

(113.4)

Net Cash evolution breakdown

(€m)

+7.7 M€

D O M I N I O N Confidential

(1)

EBITA: EBITA: Net Operating Income + PPA's

(2)

Free Operating Cash Flow: EBITDA - difference between CAPEX and Amortization - NWC variation - Net Financial Income - Tax payment; (acquisitions excluded)

© Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

Financial Discipline fulfilment

Cash conversion / EBITA

2015-2019 (%)

Cash conversion / EBITDA (1)

75%

64%

66%

>60%

>60%

2015

2016

2017

2018

2019

  • Recurrent high levels of Free Operating Cash Flow generation.

EBITA conversion intro Free

75%

Operating Cash Flow(2)

D O M I N I O N Confidential

(1) 2015-2018 commitment: >60% of EBITDA. 2018-2022 Commitment: >75% of EBITA

(2) Free Operating Cash Flow: EBITDA - difference between CAPEX and Amortization - NWC

© Dominion 2020

variation - Net Financial Income - Tax payment; (acquisitions excluded)

RONA

2015-2019 (€m)

24%

24%

25%

20%

20%

2015

2016

2017

2018

2019

  • Continuous high levels of Return-on-net-assets.

RONA(3)25%

  1. RONA: EBITA / (Total non-current assets - Deferred assets - Goodwill not associated to cash + PPAs amortization current year +Net WC ; excluded acquisitions of the year).

2 0 1 9 A N N U A L R E S U L T S

4Q results 2019

4Q Results (1)

4Q 2018

%

4Q 2019

(€m)

Turnover

301.2

+14%

342.0

Adjusted Turnover (2)

251.3

+16%

292.7

EBITDA (3)

25.5

+26%

32.0

% EBITDA on adjusted turnover

10.1%

10.9%

EBITA (3)

20.3

+11%

22.6

% EBITA on adjusted turnover

8.1%

7.7%

EBIT (3)

19.1

+4%

19.8

% EBIT on adjusted turnover

7.6%

6.8%

Net Income from Continuing Operations

11.3

+22%

13.8

% NI from Continuing Operations on adj, turnover

4.5%

4.7%

Net Income

10.9

-25%

8.2

% Net Income on adjusted turnover

4.3%

2.8%

D O M I N I O N Confidential

(1)

El The consolidation perimeter in 2019 adds 11 months of results of Bygging India and 10 months

(3) EBITDA: Net Operating Income + Depreciation; EBITA: Net Operating Income + PPA's

of Alterna

amortization; EBIT: Net Operating Income

© Dominion 2020

(2)

Adjusted turnover = Annual Accounts Turnover without revenues from sold devices

2 0 1 9 A N N U A L R E S U L T S

  1. Strategy and Execution
  2. Businesses
    • 360 Solutions
    • B2B Services
    • B2C Services
  3. Looking towards 2020

D O M I N I O N Confidential © Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

360 Solutions: global approach and further diversification

G E O G R A P H I C A L E X P A N S I O N

Expanding into Asia, within the Industrial activity field

  • Acquisition of Bygging India in February 2019. Industrial activity field.
    Strong add-ons to the backlog.
  • Projects in Asia-Oceania.
  • Good performance in Australia and Middle East.

D I V E R S I F I C A T I O N

Growth in Energy activity field (x2 since 2017)

  • The weight of Energy has doubled in the last 2 years.
  • Renewable projects in LATAM
    • A 67 MW solar plant in Dominican Rep. completed and O&M contract started.
    • Started a 65 MW wind farm in México. First project on this technology.
  • Power transmission line in Angola: execution on track.

D I G I T A L T R A N S F O R M A T I O N

Digital partner of

industrial companies

  • Industry 4.0 projects -multiple projects in a wide range of technologies
    • Maximization of maintenance efficiency by implementing Smart Data.
    • Production process improvement based on Machine Learning in the steel sector.
    • International real time assets monitoring for an equipment manufacturer.

2 0 1 9 A N N U A L R E S U L T S

B2B Services: positioned as a Tier 1 supplier

P O S I T I O N I N G

Strengthening our positions as a Tier 1 supplier

  • One Stop Shop contracts that integrate different types of services
    • Mechanical and electrical maintenance, boiler and cooling systems maintenance, logistic services and industrial cleaning for a tyre manufacturer in Spain.
  • Contracts under "Managed services" scheme
    • Multi-serviceframe contract for a chemical company in Spain.

D I V E R S I F I C A T I O N

Effective transition into

power distribution lines

  • First 2 power distribution lines O&M contracts in LATAM (approx. €20m/year):
    • 3-yearcontract in Chile
    • 3-yearcontract in Peru
  • New opportunities in LATAM and other regions with current clients.

D O M I N I O N Confidential © Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

B2C Services: from a retailer to an integrator of personal and household services

Retailer (Pre-2017)

B U S I N E S S M O D E L

  • Activity: 3rd parties' products sale.
  • Clients ownership: 3rd parties.
  • Income: from customer acquisition (one-off).

A C T I O N S I N 2 0 1 9

  • Product diversification to increase customer traffic in every distribution channel.

Smart House

(Post 2018)

B U S I N E S S M O D E L

  • Activity: integrated services provision.
  • Client ownership: Dominion.
  • Income: from operations (recurrent).

A C T I O N S I N 2 0 1 9

  • Acquisition of an electricity and gas supplier.
  • Acquisition of a cash-back company.
  • Launch of our own telco services.

2 0 1 9 A N N U A L R E S U L T S

B2C Services: key KPIs of Smart House

Smart House

State of development

Total No. of services

T E L C O

26,000

Fibre

Fibre

Mobile

Mobile

lines (1)

TV

< 10%

E N E R G Y

Electricity

of total

Electricity

145,000

Gas

Gas

Contribution Margin

Self-supply

Test

supplies (2)

Energy efficiency

Self-supply

I N S U R A N C E S

(*)

Electronic

259,000

Electronic devices

Seguros

devices

Home

Insurance contracts (3)

Vehicle

Home

Test

Health

Net new service-

F I N T E C H

Cash back

(*)

Cash-back

Test

N/A

contracts acquisitions

Consumer credits

Payments methods.

in 2019

Cash-Back

+100,000

O T H E R S

Alarms

Test

Alarms

(*)

Household

Test

N/A

Household Services

Remote assistance

services

D O M I N I O N Confidential

(*) Under development commercial brands

(2)

Electricity and gas supplies

© Dominion 2020

(1)

Fix lines, mobiles, ADSL.

(3)

Electronic device insurance contracts

2 0 1 9 A N N U A L R E S U L T S

  1. Strategy and Execution
  2. Businesses
    • 360 Solutions
    • B2B Services
    • B2C Services
  3. Looking towards 2020

D O M I N I O N Confidential © Dominion 2020

2 0 1 9 A N N U A L R E S U L T S

"Our commitment for 2019-2022 reminds in force"

Net Income x2

TURNOVER

EBITA

CAGR >5%

CAGR >10%

FREE CASH FLOW

RONA

CONVERSION

>20%

>75% EBITA

  • 360º Solutions
  • Tier 1 of B2B Services
  • Smart House
  • First dividend distribution in 2020: 1/3 of

2019 Net Income.

Financial Discipline

For 20 years we have helped clients transform to become more efficient.

We apply technology and innovation to

make this happen.

We are Dominion.

Global headquarters

Ibáñez de Bilbao, 28 8º A y B 48009 BILBAO (ESPAÑA) Phone: (+34) 944 793 787

dominion-global.com

© Dominion 2020

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Global Dominion Access SA published this content on 25 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2020 18:46:07 UTC