q4 2015 financial results - v13 · 2016. 6. 3. · as from q1-2016, quarterly data under ifrs ifrs...
TRANSCRIPT
FINANCIAL RESULTSFY & Q4 2015
Wednesday 23rd March 2016
FY & Q4 2015
HIGHLIGHTS
Gérard DEPREZ
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 3 -
HIGHLIGHTS
Good performance in FY 2015• Revenue of €838m, stable like-for-like
• EBITDA of €277m, 33.1% margin (up 1.5pts)
• Free Cash Flow: +€60m
• 4 acquisitions completed
Solid revenue and EBITDA in Q4 2015• Revenue up by 2.4% l-f-l
• EBITDA growth of 8% l-f-l
• Completion of HERC acquisition
• Positive feedback from CSR external appraisal
BUSINESS OVERVIEW
Stéphane HENON
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 5 -
FRANCE REVENUE GROWING AGAIN IN Q4
(a) “Like-for-like” means changes in revenues for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation, at constant exchange rates
2%
8%
-6%
-13%-12%
-9%
-2%
0%
3%4% 3% 3%
5%
2%
5%
2%
-2% -1%
7%
14%
-1% -2%
1%
5%
3% 2% 2%
-15%
-10%
-5%
0%
5%
10%
15%
20%
Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15
Generalist France Specialist France International
Revenue Quarterly Change (Y to Y) Like-for-Like (a)
FY & Q4 2015 Financial Results – 23rd March 2016 - 6 -
GROUPWIDE EBITDA GROWTH IN Q4
(a) “Like-for-like” means changes in revenues for the period indicated compared to the prior comparable period, excluding changes in the scope of consolidation, at current exchange rates
7%
21%
-5%
-1% 0%
19%
12%
-7%
7%7%
0%
3% 5%
-10%
9%
-3%-5%
11%
-1%
26%
-9%-6%
2%
-1%
9%
13% 12%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Q4-13 Q1-14 Q2-14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15
Generalist France Specialist France International
Adj. EBITDA Quarterly Change (Y to Y) Like-for-like (a)
FY & Q4 2015 Financial Results – 23rd March 2016 - 7 -
GENERALIST FRANCE: RESILIENT REVENUE AND CONTINUED EBITDA IMPROVEMENT
Q4-2015 revenue up by 3% like-for-like
Q4-2015 EBITDA: +7% like-for-like and margin up by 1.6 pts
Satisfactory progress of Hertz Equipment France integration
Key Figures
FY 2014 FY 2015
Revenue € 511m € 512m
Revenue evolution -6.5% +0.2%
EBITDA € 168m € 181m
EBITDA margin 32.8% 35.4%
Nb of branches (31 Dec) 416 454
Headcount (average) 3 150 3 115
Share of 2015 proforma(a) group revenue
(a) Proforma for Hertz France and Spain 2015 full revenue
63%
FY & Q4 2015 Financial Results – 23rd March 2016 - 8 -
SPECIALIST FRANCE : ORGANIC GROWTH AND STABLE PROFITABILITY
Q4-2015 Revenue down by 1%
Q4-2015 EBITDA: +11% and margin up by 3.4pts
Negative effect of large construction projects ending
Key Figures
FY 2014 FY 2015
Revenue € 143m € 144m
Revenue evolution +3.3% +0.9%
EBITDA € 47m € 48m
EBITDA margin 33.2% 33.2%
Nb of branches (31 Dec) 66 69
Headcount (average) 553 548
Share of 2015 proforma(a) group revenue
16%
(a) Proforma for Hertz France and Spain 2015 full revenue
FY & Q4 2015 Financial Results – 23rd March 2016 - 9 -
INTERNATIONAL : CONTINUED REVENUE AND EBITDA GROWTH
Q4-2015 Revenue up by 1.7% like-for-like and at constant FX
Q4-2015 EBITDA: +12% like-for-like and margin up by 2pts
Integration of recent acquisitions well on track
Key Figures
FY 2014 FY 2015
Revenue € 158m € 182m
Revenue evolution +32.1% +15.0%
EBITDA € 39m € 46m
EBITDA margin 24.6% 25.2%
Nb of branches (31 Dec) 146 145
Headcount (average) 842 996
Share of 2015 proforma(a) group revenue
21%
(a) Proforma for Hertz France and Spain 2015 full revenue
FY & Q4 2015 Financial Results – 23rd March 2016 - 10 -
2015 CAPEX ADJUSTED TO MARKET CONDITIONS
Q4-2015 Gross fleet capex of €32m (vs. €38m in 2014)
Q4-2015 GBV of fleet disposals: €46m (vs. €54m)
Contribution of HERC younger fleet
2016 gross fleet capex guidance: €150-200m
98
190184
234
173
124
0
50
100
150
200
250
Gross book value ofdisposed fleet equipment
Fleet Capex
2013 2014 2015
m€
Gross Fleet Capex and Disposals (€m)
FY & Q4 2015 Financial Results – 23rd March 2016 - 11 -
CSR POLICY REWARDED
Evaluation by ISO 26000 standards, "maturity" level of 3 out of 5 reached
Member of UN Global Compact
ISO 14001 extended to all countries
FINANCIAL RESULTS
Patrick BOURMAUD
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 13 -
ADOPTION OF IFRS
Adoption of IFRS for FY 2015– FY 2015 data under IFRS
– Restatement of FY 2013 & 2014 under IFRS
– 2015 (and preceding years) quarterly data under French GAAP
As from Q1-2016, quarterly data under IFRSIFRS vs. French GAAP: main impact on net debt and financial interests
FY & Q4 2015 Financial Results – 23rd March 2016 - 14 -
REVENUE AND EBITDA UP IN Q4
(€m)
Q4 2014
(Fr GAAP)
Q4 2015
(Fr GAAP)
Q4-15 / Q4-14Var.
Q4 2015Like for like
(Fr GAAP)
Q4-15 Like for like / Q4-14
Var.
Revenue 212 228 7.6% 217 2.4%
Adj. EBITDA (a) 64 73 14.6% 69 8.4%
Margin 30% 32% 32%
Adj. EBIT (a) 19 23 19.9% 22 17.9%
Margin 9% 10% 10%
Net Financial Expense (26) (16) -37.2% (16) -40.1%
Net Income (6) 2 - 2 -
(a) Adjusted EBITDA and adjusted EBIT under French GAAP exclude non-recurring costs, which amounted to €1.0m in Q4 2014.
FY & Q4 2015 Financial Results – 23rd March 2016 - 15 -
FY EBITDA MARGIN UP
(€m)
FY 2014
(IFRS)
FY 2015
(IFRS)
2015 / 2014Var.
FY 2015Proforma
(IFRS)
Revenue 812 838 3.2% 897
EBITDA 256 277 8.1% 293
Margin 32% 33% 33%
EBIT 90 90 0.5% 90
Margin 11% 11% 10%
Net Financial Expense (67) (67) -0.5% (71)
Net Income 12 8 -32.4% 5
FY & Q4 2015 Financial Results – 23rd March 2016 - 16 -
EBITDA IMPROVEMENT DRIVEN BY LOWER OPERATING COSTS AND ACQUISITIONS
256
277
293
10 4
7
16
200
210
220
230
240
250
260
270
280
290
300
EBITDA 2014 Operating costs Net gains on fleetdisposals
Change inperimeter
EBITDA 2015 Pro formaadjustment
EBITDA 2015 PF
€m
FY & Q4 2015 Financial Results – 23rd March 2016 - 17 -
TRADE WCR UP BECAUSE OF ACQUISITIONS
(a) Trade WCR = WCR relating to business and income tax (excluding WCR related to fixed assets)
7380 80 79 76 79
70 6677
9%10% 10% 10% 9% 10%
9%8%
9%
0%
2%
4%
6%
8%
10%
12%
14%
0
20
40
60
80
100
120
140
Dec.13 March 14 June 14 Sept. 14 Dec. 14 March 15 June 15 Sept. 15 Dec. 15
Trade WCR (a) Trade WCR in % of LTM Revenue (right hand scale)
QUARTERLY TRADE WORKING CAPITAL REQUIREMENT %€m
IFRS IFRSFr. GAAPFr. GAAPFr. GAAPFr. GAAPFr. GAAPFr. GAAPFr. GAAP
FY & Q4 2015 Financial Results – 23rd March 2016 - 18 -
TOTAL WCR UP BY €4M
(21)
(56)(55)
(19) (24) (19)(24)
(11) (21)
73 80 80 79 76 79 70 6677
-80
-60
-40
-20
0
20
40
60
80
100
Dec. 13 March 14 June 14 Sept. 14 Dec. 14 March 15 June 15 Sept. 15 Dec. 15
WCR relating to fixed assets WCR relating to business and income tax
QUARTERLY WORKING CAPITAL REQUIREMENT€m
IFRS IFRSFr. GAAP Fr. GAAP Fr. GAAPFr. GAAP Fr. GAAP Fr. GAAP Fr. GAAP
FY & Q4 2015 Financial Results – 23rd March 2016 - 19 -
POSITIVE FREE CASH FLOW FROM OPERATIONS
(€m) Q4 2014(a) Q4 2015(a) FY 2014(b)
FY 2015(b)
EBITDA before capital gains on fleet disposaland other items
54 62 213 229
Proceeds from disposals of fixed assets 13 15 51 59
Gross capital expenditure (43) (41) (253) (151)
Financial income and expense (17) (16) (51) (65)
Income tax 4 (3) (6) (18)
Change in trade WCR 2 (1) (4) 10
Change in WCR relating to fixed assets 5 9 3 (4)
Free cash flow 17 24 (47) 60
Acquisitions, dividends and FX effect (3) (112) (86) (133)
Change in net debt 14 (88) (133) (73)
(a) French GAAP(b) IFRS
FY & Q4 2015 Financial Results – 23rd March 2016 - 20 -
NET DEBT AT €1,025M, LEVERAGE RATIO BELOW 3.5X
(a) Net debt / proforma EBITDA, excluding derivatives instruments
811 857 778 833952 1 025
3.46x
3.03x2.84x
3.41x3.68x
3.49x
2010 2011 2012 2013 2014 2015 (a)
Net Debt Leverage
Leverage (Net Debt / Adj. EBITDA )
French GAAP IFRS
(a)
FY & Q4 2015 Financial Results – 23rd March 2016 - 21 -
INCREASE OF BILATERALS AND FINANCIAL LEASES
62 55 48 33 23 2 2 1
250
300410
2016 2017 2018 2019 2020 2021 2022 >= 2023
410 €m Senior Secured Notes
300 €m Senior Subordinated Notes
250 €m Senior Subordinated Notes
227 €m Bilaterals and financial leases
Debt maturity profile (in €m)
158 €m Cash and Cash Equivalents
50 €m RCF (undrawn)
MARKET UPDATE
Gérard DEPREZ
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 23 -
CONSTRUCTION MARKETS: CONFIRMATION OF EXPECTED RECOVERY
Construction markets – 2015-17 growth
Source: Euroconstruct –December 2015
Denmark
1.3% 2.3% 2.7%
Spain
2.4%4.4% 4.0%
Netherlands
6.0%4.1% 4.7%
UK
3.7% 3.7% 4.4%
Belgium
0.3% 0.1% 1.2%
Germany
0.4%2.0% 1.1%
Switzerland
-0.1%
0.9% 0.1%
Ireland
10.6% 9.3%8.1%
Norway
2.4%3.9%
2.1%
2015E 2016F 2017F
France
-1.3%
2.8%3.9%
FY & Q4 2015 Financial Results – 23rd March 2016 - 24 -
FRENCH CONSTRUCTION: RETURN TO GROWTH EXPECTED IN 2016
-0.9%
-3.0%
-8.0%
-4.1%
+5.2%
+0.9%-0.6%
-3.0%
+3.9%
0.0%
Sources: Euroconstruct, FNTP, FFB
2015 Estimate 2016 Forecast
Res & Non Res Civil Engineering Total Construction Res & Non Res Civil Engineering Total Construction
-2.8%-1.3%
2016 ROADMAP
Gérard DEPREZ
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 26 -
2016 ROADMAP
Favorable construction market prospects
Continued repositioning of French network
Focus on external growth in Europe
Q&A
FY & Q4 2015 Financial Results – 23rd March 2016
APPENDIX
FY & Q4 2015 Financial Results – 23rd March 2016
FY & Q4 2015 Financial Results – 23rd March 2016 - 29 -
2015 FRENCH GAAP TO IFRS ADJUSTMENTS
In €m French GAAP
Adjustments IFRS
Revenue 838 n/a 838
EBIT 90 0 90
EBITDA 277 0 277
Net debt (31 Dec) 1 040 (15) 1 025