Stable revenue in 2013 provides platform for recovery Presentation Q3 2013 results 7 November 2013...
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Transcript of Stable revenue in 2013 provides platform for recovery Presentation Q3 2013 results 7 November 2013...
Stable revenue in 2013 provides platform for recovery
Presentation Q3 2013 results7 November 2013
Gerard van de Aast, CEOHans Turkesteen, CFO
2
Highlights Q3 2013 results
Revenue in the quarter 1,256 million euro (Q2 2013: 1,274 million euro)
Operational EBITDA in the quarter -4 million euro (Q2 2013: -33 million euro)
Order intake YTD 2013 3,628 million euro, in line with revenue
Working capital Q3 stable versus Q2 despite regular seasonal increases
Earlier announced restructuring program largely completed and extended
Operational recovery Germany requiring more time; additional restructuring announced
Constructive dialogue covenant reset started
4
Restructuring program largely completed and extended
■ Increase of 650 FTE reduction for 2013 is mainly in Eastern Europe (230 FTEs, downsizing business), Nordic (240 FTEs, capture integration benefits) and Marine (60 FTEs improving efficiency)
■ Majority of the FTE reductions 2013 in Germany & Eastern Europe (780 FTEs), Benelux (350 FTEs), Traffic & Infra (240 FTEs), Nordic (240 FTEs) and Marine (150 FTEs)
■ Total average payback time is 15 months■ Additional reduction of 300 FTEs in Germany for 2014
Planned Actual
1300
650
300
1,355
Restructuring FTEs 2013 & 2014
2013
2014
Planned Actual
80
10
71
Restructuring costs 2013 (€m)
Total expected for 2013: ~€90m
5
Operational update Q3 2013
Benelux Dutch Building Services in process of turnaround Industrial businesses progressing well and restoring results and margin
UK & Ireland Performance at a satisfactorily level Opportunities in Water, Waste & Energy and International businesses
Nordic Satisfactory performance Market conditions in Sweden and Finland remain difficult, Norway remains good Cost saving through post acquisition synergies
Spain & Turkey Spain: markets remain tough, South America projects in progress Turkey: reviewing strategic options, including book values
ICT Performance at a satisfactory level Several deals with strategic partners
Traffic & Infra Recovering due to restructurings
Marine New management has stabilized the business and enter into change program
6
Operational update Q3 2013
Germany & Eastern Europe
Strong market with attractive projects in the market
A good reputation and market leadership position
German business trading weaker than assumed due to prior management
High cost structure and a number of weak project results
550 FTE reduction program in Germany halfway
Eastern Europe 240 FTE reduction program also halfway
Additional 300 FTE reduction in Germany will be implemented in 2014
3 year cost savings program (including stopping sponsoring activities) of €40m is underway
7
Good new projects
Industrial technology
Upgrading cleanrooms at
Pfizer facilities in Ireland
Infra technology
7 years maintenance and
project contract at Dutch
energy network provider
Stedin for part of their
network in the Province of
Utrecht (NL)
Building technology
DBFMO contract for new to
be build Penitentiary
Zaandam (NL) including 25
years responsibility of
technical infrastructure
Marine technology
Delivering of HVAC systems
plus redundant cold and
warm water supply systems
for German research vessel
‘Sonne’
8
Order intake first nine months 2013
(€m)
Order intake YTD 13
RevenueYTD 13
Benelux 499.5 496.6
Germany & Eastern Europe 639.0 782.8
UK & Ireland 466.7 563.3
Nordic 670.2 654.0
Spain & Turkey 168.4 187.7
ICT 494.0 479.3
Traffic & Infra 285.9 273.5
Marine 404.4 304.1
Total 3,628.1 3,741.3
9
Stable revenue provides platform for recovery
Stable revenue Stable revenue performance during first nine months 2013 Order intake in line with revenue for first nine months 2013
Improvement operational
performance
Improve margins Restructuring to bring cost structure in line Improving project management and project execution Procurement process Scaling technologies
Working capital reduction
Focus on cash Reduce trade receivables Reduce work in progress
11
Group performance
(€m) Q3 2013 Q3 2012
Revenue 1,256.4 1,374.0
Operational EBITDA -4.0 -56.6
Non-operational costs -29.9 -
EBITDA -33.9 -56.6
Net finance result -30.3 -18.9
Result before tax -93.7 -98.4
Income tax -2.4 8.9
Net result -96.1 -89.5
Pro rata allocation of 2012 adjustments
12
Breakdown operational EBITDA performance
(€m) Q3 2013 Q3 2013 % Q2 2013 % Q1 2013 %
Benelux -1.1 -0.7% -8.0% -2.5%
Germany & Eastern Europe -19.7 -7.3% -11.3% -10.2%
UK & Ireland 9.3 4.9% 3.9% 4.0%
Nordic 6.6 3.3% 5.3% 1.4%
Spain & Turkey -2.2 -3.5% -0.6% 0.8%
ICT 6.3 3.6% 3.1% 5.2%
Traffic & Infra 3.9 4.6% 3.5% -2.3%
Marine -1.6 -1.4% -12.5% -0.1%
Group management -5.5 - - -
-4.0 -0.3% -2.6% -1.1%
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Balance sheet
(€m) Q3 2013 Q2 2013 Q4 2012
Goodwill & other intangible assets 1,266.1 1,277.9 1,299.7
Other fixed assets 233.2 239.2 237.3
Assets held for sale 25.3 26.5 27.6
Working capital 335.7 332.3 106.2
Capital employed 1,860.3 1,875.9 1,670.8
Equity 678.4 291.6* 524.5
Net interest-bearing debt 835.7 1,205.9 773.0
Other (non-interest bearing) LT liabilities 19.7 25.1 24.8
Restructuring provisions 28.4 50.5 24.0
Other liabilities 298.1 302.8 324.5
Funding 1,860.3 1,875.9 1,670.8* Equity before completion of rights issue of ordinary shares and issue of cumulative financing preference shares
14
Balance sheet – equity movement
(€m)
Equity 30 June 2013 291.6
Result for the quarter -96.1
Proceeds from rights issue ordinary shares 499.2
Proceeds from issue cumulative financing preference shares 30.0
Transaction related costs -41.6
Other -4.7
Equity 30 September 2013 678.4
15
Balance sheet – working capital
(€m) Q3 2013 Q2 2013 Q4 2012
Work in progress 382.0 347.5 264.8
Trade receivables 938.1 938.7 1,132.1
Other current assets 265.7 337.7 283.8
Trade payables -708.7 -722.6 -890.8
Other current liabilities -541.4 -569.0 -683.7
Working capital 335.7 332.3 106.2
% LTM revenue 6.4% 6.2% 2.0%
Other current liabilities Q3 2013 includes accrued project expenses (€125m), accrued personnel expenses (€183m), deferred income (€65m), VAT payable (€39m) and various other accrued liabilities
16
Aging of trade receivables
(€m, net amount) Q3 2013 Q2 2013 Q4 2012
Not past due 668.5 664.3 767.8
Past due <180 days 140.6 146.6 228.8
Past due >180 days 129.0 127.8 135.5
Total 938.1 938.7 1,132.1
17
Balance sheet – net interest-bearing debt
(€m)
Q3 2013
Q2 2013
Q4 2012
Syndicated bank loans 450.7 608.3 488.3
Senior notes 322.3 326.4 326.3
Other interest-bearing debt 210.0 399.9 343.5
Cash -147.3 -128.7 -385.1
Net interest-bearing debt 835.7 1,205.9 773.0
Movement net interest-bearing debt(€m)
Net interest-bearing debt 30 June 2013 -1,205.9
Operational EBITDA -4,0
Change in working capital -3.4
Net capex -5,7
Paid interest & tax (net) -23.2
Restructuring & refinancing payments -61.9
Net proceeds from equity +487.6
Other -19.2
Net interest-bearing debt 30 September 2013 -835.7
18
Extraordinary items first nine months
(€m) Headcount FinancialTotal
restructuring
Announced 90* 110 200
Incurred YTD 2013 70.7 90.5 161.2
Accounted YTD 2013Non-operationalFinance expensesPrepaid expensesAmortised cost of loansEquity
70.7----
16.919.6
-12.441.6
87.619.6
-12.441.6
70.7 90.5 161.2
Paid YTD 2013 39.3 90.5 129.8
* Including extended restructuring program, but excluding additional redundancies in Germany in 2014