CONSTRUCCIONES MAQUINARIAS INMOBILIARIA MD MONTAJES KIPREOS BESCO (PERU) CONCESIONES ENERGÍA RENOVABLE QUARTERLY FINANCIAL REPORT JUNE 2016

Transcription

1 CONSTRUCCIONES MAQUINARIAS INMOBILIARIA MD MONTAJES KIPREOS BESCO (PERU) CONCESIONES ENERGÍA RENOVABLE QUARTERLY FINANCIAL REPORT JUNE 2016

2 besalco s.a. CONSOLIDATED STATEMENT OF EARNINGS (CLP MILLION) Revenues 188,906) 184,346) 2% 96,542) 95,084) 2% Cost of sales (168,634) (164,960) 2% (85,205) (84,275) 1% Gross profit 20,272) 19,386) 5% 11,336) 10,811) 5% Administrative expenses (7,683) (8,845) -13% (3,609) (4,385) -18% Net financial expense (5,352) (4,745) 13% (2,999) (2,397) 25% Net profit in associated companies (265) 312) -185% (1,096) (68) nd% Others (1,289) 5) nd% (897) (122) nd% Net profit 5,682) 6,113) -7% 2,736) 3,838) -29% Net profit attributable to shareholders 4,010) 5,446) -26% 1,848) 3,320) -44% EBITDA 22,513) 23,319) -3% 11,165) 13,781) -19% EBITDA margin 11.9%) 12.6%) 11.6%) 14.5%) CONSOLIDATED BALANCE SHEET (CLP MILLION) ASSETS Jun 2016 Jun 2015 Variation Current assets 323,369) 328,031) -1% Non-current assets 305,489) 307,468) -1% Total assets 628,858) 635,498) -1% LIABILITIES AND EQUITY Current liabilities 246,689) 256,363) -4% Non-current liabilities 193,914) 201,065) -4% Shareholders' equity 178,314) 169,627) 5% Minority interest 9,942) 8,444) 18% Total liabilities and equity 628,858) 635,498) -1% PERFORMANCE OF BESALCO STOCK PRICE (CLP) CLP 1,100 CLP 1,000 CLP 900 CLP 800 CLP 700 CLP 600 CLP 500 Besalco IPSA (indexed to Besalco stock price) CLP 400 CLP 300 CLP 200 CLP 100 sep sep sep sep nov nov nov nov jan jan jan jan jan mar mar mar mar mar may may may may may jul jul jul jul jul aug

3 business performance in the 1 st semester In the first semester of 2016, the company s results were lower to those recorded in the first semester of the year Comparing the results of both periods by subsidiaries, it shows that Besalco Inmobiliaria (Real Estate Development Company) and Besalco Montajes (Industrial Construction) recorded significant progress in all items; revenues, profits and EBITDA; Besalco Maquinarias (Heavy Machinery Services), Besalco Energía Renovable (Renewable Energy) and Kipreos all had mixed results, showing progress in some segments and setbacks in others. Finally, both Besalco Construcciones and Besalco Concesiones recorded a decline in their results. The backlog balance of works yet to be carried out closed the semester at UF 15.9 million (US$628 million), showing a drop from the UF 18.6 million that closed during the same period of 2015 (US$733 million). The works to be carried out are distributed in 74 contracts with an average duration of 16 months. By business area, 47% of the backlog corresponds to the segment of Civil Works and Construction, 50% to Machinery Service and 3% to Real Estates projects. In the segment Civil Works and Buildings for third parties, the ongoing projects for Santiago Metro, State Railway Company (EFE), Cruz Blanca (Privet Clinic), Ministry of Public Works (MOP), ELETRANS and Centinela Mining (Antofagasta Minerals) are highlighted. These projects are being executed through the different subsidiaries of the holding, comprising a diversified portfolio that includes important contracts with private and public sectors. In the segment of real estate development, the ongoing projects in the Chilean market (Besalco Inmobiliaria) are concentrated in Santiago city. In the case of the Peruvian market (Besco), the ongoing projects are located in the cities of Lima, El Callao and Piura, highlighting the megaproject Parques de Comas (north of Lima) in consortium with the Peruvian company Graña & Montero. Finally, in the Colombian market (Besco Colombia) there is an ongoing project in the city of Santa Marta. In the segment of Machinery Services, the operations of Besalco Maquinarias continue to be focused on the mining and forestry sectors, and the transportation of concrete ready mix in Santiago. STOCK EXCHANGE PRECEDENTS Jun 2016 Jun 2015 Stock price (CLP) Book value per share (CLP) Number of shares (million) Market capitalization 134, ,938 Earnings per share (CLP)* Price to book value P/E price earning ratio* *It's considered earnings per share for the last 12 months. RATINGS Fitch-Ratings Feller Rate Dec 2015 Mar 2016 Long term debt rating BBB BBB+ Equity rating 2 nd Class Level 3 1 st Class Level 3 Commercial papers N2 / BBB BBB+ / Level 2 Outlook Stable Stable 3

4 analysis of results By the end of the first semester of 2016, revenues reached a total of CLP 188,906 million, noticing an increase of 2.5% regarding the same period of the year The most relevant revenue raises were recorded in Besalco Montajes (179%), Besalco Inmobiliaria (103%), Besalco Energía Renovable (46%) and Kipreos Ingenieros (41%). The revenues by business segments shows a breakdown of 53% in Civil Works and Building, 18% in Machinery Services, 26% of Property Developments and 3% in investment Projects (concessions and energy). 13% Forestry BACKLOG DISTRIBUTION BY MARKET SEGMENT AT JUNE % Real Estate 7% Health 20% Public Works Direct Government Contracts 321, , , , ,710 4% Transport 13% Mining, other UF million 1% Public Works Concessions 8% Civil Works 4% Energy 184, ,906 23% Copper Mining REVENUES (CLP Mill) Jun'15 Jun'16 BACKLOG (UF Mill) Jun'16 4

5 Gross profit totaled CLP 20,272 million (10.7% of revenues), an increase of 4.6% in June 2016 compared to the same period in The most significant increases were those of Besalco Inmobiliaria (58%), Kipreos Ingenieros (37%) and Besalco Montajes (26%); meanwhile, BESCO (-60%), and Besalco Energía Renovable (-19%) experienced a decline in their gross profit. Gross profit by business segments is made of 54.3% in Civil Works, 6.6% Machinery Services, 33.2% in Real Estate Developments and 5.9% in Investment Projects. The operating profit (EBIT) was CLP 12,588 million, recording an increase of 19.4% regarding the same semester in Meanwhile, the operational margin reached a 6.7% of revenues, compared to 5.7% in the former period. The period s administrative expenses represented a 4.1% of revenues, compared to the 4.8% reached in the first semester of This explains most of the progress in the operational margin. Net margin (%) Gross margin (%) PROFIT MARGINS 12.1% 11.4% 6.1% 6.6% 7.2% 3.2% 4.8% 12.7% 3.9% 10.5% 3.0% 10.7% 2.1% Net profit margin attributable to shareholders Jun'15 Jun'16-3.7% 5

6 NET INCOME ATTRIBUTABLE TO SHAREHOLDERS (CLP Mill) 19,501 12,567 15,330 5,446 4,010 25, Jun'15 Jun'16 The non-operating net income represented a net loss of CLP 6,471 million, 61% higher than the first two quarters of 2015 (of CLP 4,020 million); this is mainly explained by variations listed below between both periods: -11, REVENUES AND FINANCIAL EXPENSES: net financial expenses accounted for CLP 5,352 million, registering an increase of 12.8% regarding 2015 (CLP 4,745 million). OTHER PROFITS (LOSSES): the net loss for this concept reached CLP 1,120 million, in comparison with the profits obtained through the same concept in the first two quarters of 2015 (CLP 724 million). 53,583 64,466 42,785 57,515 However, the net income attributable to the controlling owners of the company reached CLP 4,010 million, compared to the CLP 5,446 million that was reached during the first two quarters of The EBITDA reached CLP 22,513 million (CLP 23,319 million as of June of 2015), and the EBITDA margin was 11.9% (12.6% as of June of 2015). EBITDA 16.7% 16.7% 17,897 23,319 22, % 12.6% 11.9% 10.9% 5.7% Jun'15 Jun'16 EBITDA (CLP Mill) EBITDA margin (%) 6

7 analysis of financial debt In June 2016, the consolidated financial debt was maintained in comparison with the closing in December 2015, and reduced by 2.3% regarding the one registered in March The decrease is mainly explained by the real estate, machinery and energy subsidiaries which registered payments for a total of CLP 7,000 million. In June of 2016, Besalco S.A. s financial debt reached CLP 297,501 million. A 44% (CLP 130,892 million) corresponds to current liabilities mainly consisting of financing of construction works (CLP 69,765 million), leasing contract payments for machinery (CLP 16,642 million), and civil works contracts financing (CLP 12,315 million of Kipreos and CLP 12,917 million of Besalco Construcciones), a portion of shortterm credits structured in long-term for concessions and energy (CLP 3,929 million), working capital and short-term portion of longterm credits of Besalco S.A. LEVERAGE Total leverage (times) Financial leverage (times) Financial leverage without energy (times) Jun'16 FINANCIAL DEBT AT JUNE % Long Term Energy 11% Short Term Banks FINANCIAL DEBT CLP Mill Short Term Banks 32,959 Long Term Banks 50,863 12% Machinery Leasing CLP 297,501 million 17% Long Term Banks 9% Long Term Public Concessions Projects LT Public Concessions Projects 25,083 Real Estate Bank Projects 84,134 Machinery Leasing 35,570 Long Term Energy 68,892 Total Financial Debt 297,501 28% Real Estate Bank Projects 7

8 The non-current debt, which corresponds to the 56% of the total (CLP 166,609 million), is guaranteed by the respective projects. Thus, 54% (CLP 90,046 million) corresponds to the financing of concessions or energy projects and is structured according to the project s deadlines. Besalco S.A. s debt (CLP 44,920 million) includes a syndicated 5-year loan signed by the company in March of 2016 with five banks in the marketplace for a total of UF 1,008,351. This loan refinanced a substantial portion of its short-term debt. FINANCIAL DEBT FOR SUBSIDIARIES AT JUNE % Besco 8% Public Concessions 4% Kipreos 15% Besalco FINANCIAL DEBT Jun 2015 Jun 2016 BESALCO AND SUBSIDIARIES CLP Mill CLP Mill Besalco 39,735 44,920 9% Civil Works Civil Works (i) 28,005 26,547 Machinery Services 41,248 35,570 Real Estate (i) 75,940 76,709 23% Energy CLP 297,501 million 12% Machinery Services Energy (i) 66,870 68,892 Public Concessions (i) 25,152 25,083 Besco 6,426 7,425 Kipreos 12,420 12,355 Other Consortia 2,299 - Total Financial Debt 298, ,501 (i) Financial debt. 26% Real Estate 8

9 construcciones s.a. (civil works) Revenues 48,132) 66,902) -28% 22,132) 35,487) -38% Gross profit 3,224) 3,252) -1% 1,479) 1,529) -3% Operating profit 1,773) 2,308) -23% 868) 1,153) -25% Net financial expenses (492) (738) -33% (269) (278) -3% Net profit 1,242) 1,694) -27% 652) 1,103) -41% Net profit attributable to shareholders 371) 1,224) -70% 153) 884) -83% EBITDA 2,409) 3,461) -30% 1,250) 2,092) -40% Financial leverage (times) 1.1) 1.4) Liquidity ratio (times) 1.3) 1.2) Total employees 2,287) 3,407) This subsidiary recognizes results derive from: - Execution of direct contracts; - Execution of contracts under consortiums modality in which it is the controlling party; - Execution of contracts of associations or shared accounts (hereinafter "SA"). During the first semester of 2016, a large number of contracts have been executed under the SA modality, and their results are included as "Share of profit or loss of associates and joint businesses." Revenues dropped a 28.1% when comparing the first semester of 2016 vs (-11.5% if SA contracts are included in this line). Despite the reduction in revenues, gross profit only decreases a 0.9% when comparing the two semesters (an increase of 8.7% if SA contracts are included). As a consequence derived from the evolution in revenues and gross profit, the gross margin increases a 6.7%, superior than the 4.9% recorded in June of 2015 (6.0% if it includes SA contracts). Controllers net income fall a 69.7%. EBITDA falls a 30.4%. BACKLOG (UF million) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 9

10 maquinarias s.a. (machinery services) Revenues 35,071) 34,982) 0% 16,856) 18,540) -9% Gross profit 2,206) 2,089) 6% 924) 1,104) -16% Operating profit 1,259) 1,079) 17% 428) 603) -29% Net financial expenses (785) (899) -13% (396) (472) -16% Net profit 980) 1,951) -50% 367) 1,605) -77% Net profit attributable to shareholders 972) 2,117) -54% 369) 1,619) -77% EBITDA 8,036) 10,079) -20% 3,598) 6,040) -40% Financial leverage (times) 0.9) 1.3) Liquidity ratio (times) 1.0) 0.9) Total employees 1,708) 1,814) Revenues increase slightly by 0.3% in comparison to the same semester of Gross profit increases a 5.6% between both periods. The margin of gross profit also increases, from a 6.0% (June 2015) to a 6.3% (June 2016). The operating income (EBIT) increases a 16.7% as a result of the increase in the gross profit margin and the reduction of 34% in the administrative expenses between both periods. Results of the controllers and EBITDA fall as a result of a smaller nonoperating result in the period. BACKLOG (UF million) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 10

11 inmobiliaria s.a. (real estate development) Revenues 41,667) 20,515) 103% 23,953) 11,492) 108% Gross profit 5,920) 3,750) 58% 3,107) 2,128) 46% Operating profit 4,614) 2,578) 79% 2,442) 1,605) 52% Net financial expenses (873) (852) 2% (403) (412) -2% Net profit 3,355) 904) nd% 1,796) 453) nd% Net profit attributable to shareholders 3,327) 1,033) 222% 1,814) 571) 218% EBITDA 5,092) 2,606) 95% 2,572) 1,611) 60% Financial leverage (times) 2.3) 2.4) Liquidity ratio (times) 1.3) 1.9) Total employees 936) 1,015) Revenues of the first semester of the year amounted to CLP 41,667 million, a 103% superior to those recorded in the same period of the former year. Gross profit increases a 58%, with a gross margin of 14.2% (18.3% to June of 2015). The operating result (EBIT) increases a 79% as a consequence of the increase in the gross profit and administrative expenses that only grow in a moderate way. Results attributable to the owners of the controller company showed a positive result of CLP 3,327 million, in comparison to CLP 1,033 million obtained in the first semester of BACKLOG (UF million) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 11

12 md montajes s.a. (industrial construction) 60% besalco Revenues 11,414 4,093) 179% 4,777 3,344) 43% Gross profit 1,264 1,004) 26% ) 46% Operating profit 376 (82) nd% 136 (41) nd% Net financial expenses ) 4% 44 39) 12% Net profit ) nd% ) nd% Net profit attributable to shareholders ) nd% ) nd% EBITDA ) nd% ) nd% Financial leverage (times) ) Liquidity ratio (times) ) Total employees ) Revenues increased a 178.9% with a favorably impacts in the results in comparison to the first semesters of 2016 vs Gross profit increases 25.9%. Positive operating result of CLP 376 million, compared with a loss of CLP 82 million in the period January-June Results for controllers and EBITDA increases substantially. BACKLOG (UF million) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 12

13 kipreos ingenieros (civil works for electric lines) 68% besalco Revenues 21,102) 14,981) 41% 12,307) 7,000) 76% Gross profit 2,531) 1,844) 37% 1,730) 882) 96% Operating profit 2,228) 1,151) 94% 1,581) 565) 180% Net financial expenses (805) (59) nd% (721) (27) nd% Net profit 668) 814) -18% 401) 487) -18% Net profit attributable to shareholders 668) 814) -18% 401) 487) -18% EBITDA 2,631) 1,317) 100% 1,688) 649) 160% Financial leverage (times) 1.8) 1.0) Liquidity ratio (times) 1.2) 1.2) Total employees 697) 707) Significant increase of revenues because of simultaneous implementation of projects in the Central Interconnected System for Eletrans (40.9%). Increase of the 37.3% in gross profit, with a margin of 12.0% (gross profit over revenue), reflecting a slight decrease from the 12.3% reached during the same period of Higher financial expenses impact the profit of the controller companies (-18%). However, EBITDA significantly rises (99.7%). BACKLOG (UF million) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 13

14 kipreos aéreos (helcopter services for civil works) 68% besalco Revenues 2,146) 1,403) 53% 1,109) 329) 237% Gross profit 639) 657) -3% 205) 191) 7% Operating profit 564) 583) -3% 180) 162) 11% Net financial expenses (3) (5) -45% (2) (3) -47% Net profit 384) 535) -28% 122) 169) -28% Net profit attributable to shareholders 384) 535) -28% 122) 169) -28% EBITDA 628) 637) -1% 244) 156) 56% Financial leverage (times) 0.0) 0.0) Liquidity ratio (times) 2.6) 2.3) Total employees 22) 20) Significant increase in revenues (52.9%), but with lower profit margin as a consequence of the impact derived from a contract that demanded a great amount of flight hours. Stable gross profit with a marginal fall of 2.7%. Results decrease a 28.2% as a result of higher taxes. Steady EBITDA, with a marginal fall of 1.5%. 14

15 JUNE 2016 IIQ 2016 IIQ % 2,094) 2,833) -26% Gross profit 1,087) 2,697) -60% 385) 1,295) -70% 9) 1,455) nd% (205) 457) -145% Net financial expenses (93) (98) -5% (7) (53) -86% Net profit (11) 969) -101% (64) 345) -118% 17) 980) -98% (69) 333) -121% 214) 1,528) -86% (33) 507) -106% Financial leverage (times) 0.4) 0.3) Liquidity ratio (times) 2.2) 2.1) 180) 240) Operating profit Net profit attributable to shareholders EBITDA Total employees Trend continued as the two last quarters of 2015 and a shrinkage of revenues (-27.5% in the semester), which affects all bottom lines. Gross profit falls 59.7%. Results and EBITDA substantially fall (98.2% and 86.0%, respectively) ,663) ,004) Variation 0.26 Revenues Variation 0.55 Jun Jun 2016 BACKLOG (UF million) QUAR TERLY FI NANCI AL REPOR T / besco s.a. (peru) Jun'14 Dec'14 Jun'15 Dec'15 Jun'16 15

16 concesiones s.a. (public concessions) Revenues 379) 833) -54% 212) 372) -43% Gross profit 126) 263) -52% 60) 76) -22% Operating profit (10) (565) -98% 217) (370) 159% Net financial expenses (609) (541) 13% (322) (240) 34% Net profit (1,823) (656) 178% (1,613) (695) 132% Net profit attributable to shareholders (1,822) (522) 249% (1,613) (588) 174% EBITDA (876) 41) nd% (1,187) (219) nd% Financial leverage (times) 1.4) 1.4) Liquidity ratio (times) 7.2) 2.2) Total employees 287) 208) Project Bodegas ABX - Arturo Merino Benítez Airport: - Offices initiated operation in December 2015, as of today 30% of the total area is leased; - In September of 2015, works for the project Bodega Norte began with an estimated deadline (COD) for October Convento Viejo Project reservoir for irrigation: - Progress Phase III: 81%; - Irrigation surface covered to this date: 6,139 hectares. Annual season sale: UF 8,000; - Phase III in operation; - Hydroelectric power plant: continues progress of the detail engineering. It is expected to obtain the substation s RCA in September of Project of underground car park Plaza Sucre (Viña del Mar): - Initiation of operation: June of Concession Company La Fruta S.A. (associated with 22.5%): - In May 2016 a verdict of the Arbitral Honorable Commission condemned the Ministry of Public Works ("MOP") to pay UF 586,000. This verdict was not appealed by MOP or by the concession company. The collection of the corresponding payment is pending. The period s losses reach CLP 1,823 million. Of this amount, CLP 1,350 million corresponds to the effects of the verdict mentioned in the former point above. Projects under consideration: - Retender of Diego Aracena Airport in Iquique (MOP); - Tender, construction, and operation of operational camps at Gabriela Mistral Division, Codelco Norte. 16

17 energía renovable (renewable energy) Revenues 6,277) 4,314) 46% 3,352) 2,646) 27% Gross profit 1,137) 1,410) -19% 1,547) 1,166) 33% Operating profit 785) 982) -20% 1,356) 992) 37% Net financial expenses (1,631) (1,551) 5% (839) (732) 15% Net profit (308) 214) -244% 448) 202) 122% Net profit attributable to shareholders (310) 211) -247% 439) 199) 121% EBITDA 2,710) 2,086) 30% 2,064) 1,379) 50% Financial leverage (times) 6.7) 5.9) Liquidity ratio (times) 0.4) 0.3) Total employees 65) 87) Increase of 45.5% in revenues as a consequence of: - Lower comparison base as of 2015, since it does not consider revenues associated to the hydroelectric power plant Los Hierros II; - Start of billing contract with Agrosuper. Drop of gross profit (-19.4%) and of the gross profit margin (18.1% vs. 32.7%), due to lower price of sold energy. 17