November 5th, 2019
CONFERENCE CALL DETAILS
LIVE EVENT:
The Company will host a conference call for investors and analysts today at 18:30 (Spanish time).
Please find below conference call telephone numbers:
Spain: +34 911140101
France: +33 170710159
UK: +44 2071943759
US: +1 6467224916
Acces Code::17964390#
Access to the live event:
https://event.on24.com/wcc/r/2104989-1/0049126FD2CDFC587E669CD6A80E3B0D?partnerref=rss-events
WEBCAST REPLAY:
A recording of the conference call will be available for 30 days on the following telephone numbers:
Replay dial number:
Spain: +34 910387491
France: +33 (0)170710160
UK: +44 2033645147
US: +1 (646) 722-4969
Access code: 418878556#
Access to the Webcast Replay:
https://event.on24.com/wcc/r/2104989-1/0049126FD2CDFC587E669CD6A80E3B0D?partnerref=rss-events
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This presentation has been produced by Indra for the sole purpose expressed therein. Therefore, neither this presentation nor any of the information contained herein constitutes an offer sale or exchange of securities, invitation to purchase or sale shares of the Company or any advice or recommendation with respect to such securities.
Its content is purely for information purposes and the statement it contains may reflect certain forward-looking statements, expectations and forecasts about the Company at the time of its elaboration. These expectations and forecasts are not in themselves guarantees of future performance as they are subject to risks, uncertainties and other important factors beyond the control of the Company that could result in final results materially differing from those contained in these statements. The Company does not assume any obligation or liability in connection with the accuracy of the mentioned estimations and is not obliged to update or revise them.
This document contains information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information.
This disclaimer should be taken into consideration by all the individuals or entities to whom this document is targeted and by those who consider that they have to make decisions or issue opinions related to securities issued by Indra.
3
- •9M19 Backlog +9% and Order Intake +7%, both above revenue growth (+5%)
- •Revenues up +6% in local currency in 9M19 , both T&D and Minsait posted growth. America stood out (+15% in local currency)
- •EBITDA up +22% in 9M19 (+7% excluding the IFRS 16 impact)
- •EBIT grew +10% in 9M19, pushed by Minsait (3.1% EBIT margin), despite the lower contribution from the Election Business
- •Net profit improved +18% in 9M19
- •FCF almost flat in 3Q19 (€-1m) vs (+€15m) in 3Q18, backed by working capital normalization in the quarter
- •Indra maintains its 2019 guidance
- •Indra, nominated as national industrial coordinator of the FCAS (Future Combat Air System) Program
4
9M19 Sales Growth | 3Q19 Sales Growth | ||
Reported | +5% | Reported | +4% |
Local Currency | +6% | Local Currency | +4% |
Organic1 | +5% | Organic1 | +4% |
€m | €m |
1. Excluding the ACS acquisition and the FX impact
5
Order Intake (€m)
Local Currency / Reported
2,632 | ||
2,466 | +7% / +7% | |
1,245 47%
50%1,233
+1%
601 | 23% | |||||||||||
22% | 547 | |||||||||||
+11% / +10% | ||||||||||||
15% | 366 | 455 | 17% | |||||||||
+24% / +24% | ||||||||||||
13% | 319 | 13% | ||||||||||
+3% / +4% | 331 | |||||||||||
9M18 | 9M19 |
Revenues (€m)
Local Currency /Reported
2,288 | ||
2,174 | +6% / +5% | |
Spain | 1,147 | |||
51% | 1,112 | +3% | ||
50% | ||||
America | 20% | 431 | +15% / +12% | 484 | 21% | ||||||
Europe | |||||||||||
17% | 363 | +7% | / +7% | 390 | 17% | ||||||
AMEA | 12% | 268 | -1% | / -1% | 266 | 12% | |||||
9M18 | 9M19 |
6
Indra backlog (€m)
+9%4,378
4,032
9M189M19
Indra backlog/revs LTM
1.31 | +4% | 1.36 |
9M18 | 9M19 |
T&D backlog (€m)
2,720 +4%2,820
9M189M19
T&D backlog/revs LTM
2.37-3%2.30
9M18 | 9M19 |
Minsait backlog (€m)
1,312 +19%1,558
9M189M19
Minsait backlog/revs LTM
0.68 +14%0.78
9M189M19
7
49,082 | ||||||||||||
5,375 | 1,900 | |||||||||||
Totalworkforce | 43,707 | -43 | ||||||||||
Overheads & Others | 1,943 | 7,327 | ||||||||||
T&D | 6,900 | 427 | ||||||||||
4,991 | ||||||||||||
39,855 | ||||||||||||
Minsait | 34,864 | o/w >3,000 BPO | ||||||||||
o/w >700 Digital | o/w >2,500 in | |||||||||||
BPO Latam | ||||||||||||
Services | ||||||||||||
dic.-18 | sep.-19 | |||||||||||
2018 | 9M19 |
8
9M19 EBITDA and Margin | 3Q19 EBITDA and Margin | |
9.7% | 10.9% | |
8.4% | ||
9.4% | ||
9M19 EBIT and Margin3Q19 EBIT and Margin
5.3% | 5.5% |
6.5% | |
6.0% |
9
Guidance 2019 | 9M19 |
Revenue growth | Low single digit | +6% |
(in constant currency) | ||
EBIT growth | >10% | +10% |
(in absolute terms) | ||
FCF before NWC* | >100 m€ | €93m |
*Excluding IFRS 16 impact
10
T&D
9M19 Order Intake (€m) | 9M19 Revenues (€m) | 3Q19 Revenues (€m) | |||||||||||||||||||||||||||||||||||||
Local Currency / Reported | Local Currency / Reported | Local Currency / Reported | |||||||||||||||||||||||||||||||||||||
902 | 907 | ||||||||||||||||||||||||||||||||||||||
+0% / +1% | 262 | ||||||||||||||||||||||||||||||||||||||
814 | 259 | +2% / +2% | |||||||||||||||||||||||||||||||||||||
777 | |||||||||||||||||||||||||||||||||||||||
354 | +5% / +5% | ||||||||||||||||||||||||||||||||||||||
39% | +25% / +25% | 442 | 49% | 45% | 117 | 118 | 45% | ||||||||||||||||||||||||||||||||
-0% /-0% | 389 | 48% | |||||||||||||||||||||||||||||||||||||
50% | 389 | +0% / +0% | |||||||||||||||||||||||||||||||||||||
61% | 547 | 465 | 52% | 55% 141 | 145 | 55% | |||||||||||||||||||||||||||||||||
+3% / +3% | |||||||||||||||||||||||||||||||||||||||
-15% /-15% | 426 | ||||||||||||||||||||||||||||||||||||||
51% | 50% | 388 | +10% / +10% | ||||||||||||||||||||||||||||||||||||
9M18 | 9M19 | 9M18 | 9M19 | 3Q18 | 3Q19 |
Defence & Security
Transport & Traffic
11
T&D
9M19 EBITDA and Margin | 3Q19 EBITDA and Margin | |
16.2% | 16.7% | |
14.0% | 15.8% |
12.8% | 9M19 EBIT and Margin | 3Q19 EBIT and Margin |
10.0% | 12.6% | 11.4% |
12
9M19 Order Intake (€m) | 9M19 Revenues (€m) | |||||||||||||||||||||||||||||
Local Currency / Reported | Local Currency / Reported | |||||||||||||||||||||||||||||
1,564 | 1,725 | |||||||||||||||||||||||||||||
+11% / +10% | ||||||||||||||||||||||||||||||
1,473 | ||||||||||||||||||||||||||||||
491 | 28% | 1,396 | +6% / +6% | |||||||||||||||||||||||||||
32% | 507 | -2% /-3% | 464 | 32% | ||||||||||||||||||||||||||
30% | 417 | + | 12% / +11% | |||||||||||||||||||||||||||
574 | 33% | |||||||||||||||||||||||||||||
-5% /-5% | ||||||||||||||||||||||||||||||
39% | 602 | 34% | 481 | 510 | 35% | |||||||||||||||||||||||||
+6% / +6% | ||||||||||||||||||||||||||||||
421 | 24% | |||||||||||||||||||||||||||||
18% | +52% / +52% | 23% | 313 | 21% | ||||||||||||||||||||||||||
277 | 321 | -2% /-2% | ||||||||||||||||||||||||||||
239 | 14% | |||||||||||||||||||||||||||||
11% | 186 | |||||||||||||||||||||||||||||
177 | 13% | 178 | 13% | |||||||||||||||||||||||||||
+37% / +35% | +6% / +5% | |||||||||||||||||||||||||||||
9M18 | 9M19 | 9M18 | 9M19 |
Energy & Industry
Financial Services
PPAA & Healthcare
Telecom & Media
MINSAIT
3Q19 Revenues (€m)
Local Currency / Reported
479 | |||||||||||||||
452 | +6% / +6% | ||||||||||||||
30% | + | 11% / +11% | 149 | 31% | |||||||||||
134 | |||||||||||||||
34% | +8% / +8% | 34% | |||||||||||||
152 | 165 | ||||||||||||||
24% | 21% | ||||||||||||||
109 | -7% /-7% | 102 | |||||||||||||
13% | 13% | ||||||||||||||
57 | +11% / +10% | 63 | |||||||||||||
3Q18 | 3Q19 |
13
MINSAIT
9M19 Operating Margin1 | 3Q19 Operating Margin1 | ||||
4.6%-0.1pp 4.5%
64 | 66 |
9M18 Op. Margin (€m) | 9M19 Op. Margin (€m) |
9M19 EBIT and Margin
3.1% | |
+1.9pp | |
1.1% | 45 |
16 | |
9M18 EBIT (€m) | 9M19 EBIT (€m) |
7.1% | -1.8pp | 5.3% |
32 | ||||||||
25 | ||||||||
Significant | ||||||||
lower | ||||||||
3Q18 Op. Margin (€m) | 3Q19 Op. Margin (€m) | |||||||
contribution | ||||||||
from the | ||||||||
3Q19 EBIT and Margin | Election | |||||||
Business | ||||||||
3.8% | |
2.2% | +1.6pp |
10 | 18 |
3Q18 EBIT (€m) | 3Q19 EBIT (€m) |
1. EBIT before Other Operating Income & Expenses, which includes: staff reorganization, integration and acquisition costs, fines, amortization of intangible assets (PPA from acquisitions) and equity based compensation.
14
Quarterly FCF (€m)
FY15 €-50m
137
-23
-79-85
1Q15 | 2Q15 | 3Q15 | 4Q15 |
FY16 €184m
140 |
47 |
2 |
-5 |
1Q16 2Q16 3Q16 4Q16
FY18 €168m | 9M19 €-238m | |||||||||
FY17 €186m | 213 | |||||||||
142 | ||||||||||
75 | ||||||||||
15 | ||||||||||
-5 | -26 | -6 | -1 | |||||||
-55 | ||||||||||
-108 | -129 | |||||||||
1Q17 | 2Q17 | 3Q17 | 4Q17 | 1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 |
Accumulated FCF LTM (€m)
163181 184132 104184 186 185 1579616866
76
-9-25
-114 | -50 | ||||||||||||||||
-136 | |||||||||||||||||
1H15 | 9M15 | FY15 | 1Q16 | 1H16 | 9M16 | FY16 | 1Q17 | 1H17 | 9M17 | FY17 | 1Q18 | 1H18 | 9M18 | FY18 | 1Q19 | 1S19 | 9M19 |
FCF before WC* (€m)
9393
0%
9M18 | 9M19*Excluding IFRS 16 impact | ||
15 | |||
Net Debt Bridge - Cash Flow (€m)
FCF = €-238m
o/w -26 M€ IFRS 16
Working Capital Normalization in 3Q: €-38m(1)in 3Q19 vs €-29m in 3Q18.
o/w +26 M€ IFRS 16
Main Working Capital Items
Shorter term items (likely to
reverse by YE)
• Seasonality of concentration of project milestones
- Anticipation of cash collections from 2020
- Cash collections linked to delayed payments
Medium to longer term items
- Pending cash collections from delayed payments
- Financing of sales growth
- Inventories associated to IFRS 15
- Higher inventories linked to improve Time To Market
- €-43including IFRS 16 (€-9m impact)
16
Net Working Capital (DoS)
Inventory
Accounts Reveivable
Accounts payable
47 | |||||
+7 | |||||
37 | +11 | 40 | |||
37 | |||||
36 | 46 | +9 | |||
+10 | |||||
+4 | ||||
+13 | -70 | -74 | ||
-82 | ||||
2018 | 9M19 | 9M18 |
17
837 | Net Debt (€m) |
(173)
730 | Net Debt | ||||
(Factoring)1 | |||||
700 | 680 | 686 | (187) | ||
666 | |||||
(187) | (187) | ||||
(187) | (187) |
3Q15 4Q15 3Q16 3Q17 3Q18 3Q19
6.6x | Net Debt/EBITDA LTM (Times) | ||||||
5.4x | |||||||
3.1x | 2.7x | 2.5x | 2.4xND/ EBITDA LTM | ||||
Ex IFRS 16 | |||||||
3Q15 4Q15 | 3Q16 | 3Q17 | 3Q18 | 3Q191. Non-recourse factoring |
18
Gross and Net Debt Structure
9M19 % total 2018 % total |
Corporate Bonds
Convertible Bonds
R+D Loans
Bank Loans
EIB1Loans
€1,486m |
354 |
247 |
90 |
715 |
80 |
€756m | |
569 | |
187 | €730m |
Factoring | |
730 |
L/T Debt | 1,437 | 97% | 1,359 | 97% |
S/T Debt | 49 | 3% | 42 | 3% |
Gross Debt | 1,486 | 100% | 1,401 | 100% |
Cost of Gross Debt | 1.8% | 2.0% | ||
Cash & Others | 756 | n.m. | 918 | n.m. |
Net Debt | 730 | n.m. | 483 | n.m. |
Cost of Net Debt | 2.7% | 3.2% |
Gross Debt | Cash & Cash | Net Debt | ||
Equivalents | ||||
9M18 | 2018 | |||
Average life (years) | 3,5 | 4,0 | ||
Other available credit facilities: €190m
Gross Debt | Maturity Profile | 775 | ||
335 | 320 | |||
12 | 43 | |||
2019 | 2020 | 2021 | 2022 | 2023 and | 2 | |||
1. European Investment Bank . 2. Including €246m Convertible Bond with 2023 maturity and €296m Corporate Bond with 2024 maturity | beyond | |||||||
19 | ||||||||
Investor Relations irindra@indra.es
Avenida de Bruselas, 35 28108 Alcobendas Madrid Spain
T +34 91 480 98 00 www.indracompany.com
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Indra Sistemas SA published this content on 05 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 November 2019 23:24:01 UTC