CONSTRUCCIONES MAQUINARIAS INMOBILIARIA CONCESIONES ENERGÍA RENOVABLE MD MONTAJES BESCO (PERU) KIPREOS QUARTERLY FINANCIAL REPORT JUNE 2015
besalco group CONSOLIDATED STATEMENT OF EARNINGS (CLP MILLION) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues 184,346) 175,800) 5% 95,084) 76,054) 25% Cost of sales (164,960) (160,089) 3% (84,275) (66,190) 27% Gross profit 19,386) 15,712) 23% 10,810) 9,865) 10% Administrative expenses (8,845) (7,968) 11% (4,385) (3,972) 10% Net financial expense (4,745) (4,978) -5% (2,397) (2,784) -14% Net profit in associated companies 312) 298) 5% (68) (1,418) -95% Others 5) (2,628) 100% (122) (1,498) -92% Net income 6,113) 436) 1,301% 3,838) 192) 1,895% Net income attributable to shareholders 5,446) 2,098) 160% 3,320) 811) 309% EBITDA 23,319) 19,432) 20% 13,780) 8,549) 61% CONSOLIDATED BALANCE SHEET (CLP MILLION) ASSETS June 2015 June 2014 Variation Current assets 328,031) 291,324) 13% Non-current assets 307,468) 281,886) 9% Total assets 635,498) 573,210) 11% LIABILITIES AND EQUITY Current liabilities 256,363) 224,457) 14% Non-current liabilities 201,065) 164,798) 22% Shareholders' equity 169,627) 175,634) -3% Minority interest 8,444) 8,321) 1% Total liabilities and equity 635,498) 573,210) 11% 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 jan mar may jul sep nov jan mar may jul sep nov jan mar may jul sep nov ene mar may jul 2012 2013 2014 2015 2
besalco s.a. The end of June 2015 marks the third consecutive quarter of profits, after the losses registered during the third quarter of 2014. There was a 5% increase in sales during this first semester in relation to the same period of 2014. Meanwhile, net income attributable to shareholders reached CLP 5,446 million, a 160% increase compared to the previous year. The company s performance on the first half of 2015, is the result of mixed performances of its subsidiaries. In effect, both Besalco Construcciones and Besalco Inmobiliaria showed substantial improvements in revenues, net income and EBITDA relative to the same period of 2014. Besco recorded a significant increase in revenues and a rise of EBITDA, but its net income was slightly below that of 2014. Finally, Besalco Maquinarias, Besalco Montajes, Kipreos and Besalco Energía showed drops on these three concepts. STOCK EXCHANGE PRECEDENTS June 2015 June 2014 Stock price (CLP) 288 362 Book value per share (CLP) 294 305 Number of shares (million) 576 576 Market capitalization (CLP million) 165,938 208,575 Earnings per share (CLP) -15 16 Price to book value 1.0 1.2 P/E price earning ratio -19.5 22.8 The backlog amounts to USD 733 million in June 2015, remaining almost unchanged relative to December 2014. The works to be executed are spread over 88 contracts, with an average time to completion of 29 months. There are 40 contracts for civil works, construction and assembly (USD 321 million), 14 real estate development projects including both those in Chile and Peru (USD 54 million), and 34 contracts for machinery services (USD 358 million). RATINGS Feller Rate Fitch-Ratings March 2015 December 2014 Long term debt rating BBB+ BBB Equity rating 1 st Class Level 3 2 nd Class Level 3 Commercial papers BBB+ / Level 2 N2 / BBB Outlook Negative Negative In the area of civil works, construction and assembly, there are outstanding projects under execution by different subsidiaries of BESALCO for Metro de Santiago, Empresa de Ferrocarriles del Estado (EFE), Cruz Blanca, the Ministry of Public Works [MOP for its Spanish acronym], and ELETRANS, making up a portfolio that includes important contracts with both private and public customers. In the area of real estate development, the Chilean operation includes a series of projects under execution in Santiago and Viña del Mar, with the starting of new phases of housing projects in Colina and San Bernardo. In the case of Peru, there are projects being developed in the cities of Lima, El Callao and Piura, and it is important to highlight the starting of Parque de Comas (Lima), a large residential project in consortium with the Peruvian company Graña & Montero. The machineries service is currently very active, considering both its current projects and the ones incorporated this year. This subsidiary has been the one struck the most by the downturn in coppermining investment and by the shut down of ironmining operations, all of which have implied the relocation and sale of equipment, in order to diminish the vacancy rate. 3
financial analysis Revenues for the first half of 2015 were CLP 184,346 million, 5% over those of the same period of 2014, which amounted to CLP 175,800 million. The most significant increases came from Besalco Construcciones (27%), Besalco Inmobiliaria (151%), and Besco in Peru (141%). The breakdown of revenues by business area shows a 62% share for civil works, construction and assembly, 19% for machineries services, 16% for real estate development and 3% for investment projects (concessions and energy). The gross profit margin increased from 8.9% in the first half of 2014 to 10.5% during the first six months of this year. The operating profit also showed a significant rise, from 4.4% to 5.7% of sales, during the same period. BACKLOG (USD MILLION) 949 900 1,039 954 736 733 2010 2011 2012 2013 2014 Jun'15 BACKLOG DISTRIBUTION BY MARKET SEGMENT AT JUNE 2015 15% Forestry 12% Retail 6% Health 8% Public Works Direct Government Contracts 1% Public Works Concessions 11% Civil Works BACKLOG USD Mill Health 42 Public Works - Direct Government Contracts 57 Public Works - Concessions 9 USD 733 3% million Transport 9% Energy 9% Mining, other Civil Works 78 Energy 66 Copper Mining 194 Mining, other 65 Transport 25 Forestry 108 Retail 90 Total Backlog 733 26% Copper Mining 4
A substantial part of the improvement is explained by the better performance of Besalco Construcciones, which had an operating loss of 9.3% of revenues in the first half of 2014, against an operating profit of 3.4% of revenues during the same period of 2015. Besalco Inmobiliaria did also contribute to the same effect, given its increase in operating profit margins, from 0.5% to 12.6%, for the first halves of 2014 and 2015, respectively. Net margin (%) Gross margin (%) EBITDA increased 20%, from CLP 19,432 million at the end of June 2014, to CLP 23,319 million at the end of June 2015, which in terms of EBITDA margin is 11.1% and 12.6%, respectively. Non-operating income increased from a loss of CLP 8,938 million in the first half of 2014 to a profit of CLP 4,021 million for the same period of 2015, mainly due to changes in the following items between both periods: INTEREST EXPENSE: net interest expense remained stable, with a slight decrease from CLP 4,978 million to CLP 4,745 million. REVENUES (CLP Mill) 385,789 392,301 25,617 251,563 PROFIT MARGINS 321,612 316,736 175,800 184,346 12.4% 12.1% 11.4% 10.5% 8.9% 6.8% 6.1% 6.6% 7.2% 4.8% 3.2% 3.0% 1.2% 2010 2011 2012 2013 2013 Jun'14 Jun'15 NET INCOME ATTRIBUTABLE TO SHAREHOLDERS (CLP Mill) 17,062 19,501 12,567 2,098 5,446-3.7% 2010 2011 2012 2013 Jun'14 Jun'15-11,849 2010 2011 2012 2013 2014 Jun'14 Jun'15 2014 5
EARNINGS FROM AFFILIATES: profits increased from CLP 298 million to CLP 311 million, and are mainly explained by earnings in the Peruvian real estate consortium GMVBS and in the concession company Convento Viejo. OTHER EARNINGS: this item increased from a loss of CLP 871 million to a profit of CLP 2,390 million. These earnings were essentially derived from machinery sales, according to a company policy of equipment renewal. FOREIGN CURRENCY EXCHANGE EARNINGS (LOSSES): losses for this concept decreased from CLP 3,388 million to CLP 1,977 million. Net income attributable to shareholders during the first six months of 2015 reached CLP 5,446 million, 160% in excess of CLP 2,098 million obtained in 2014. 46,181 53,583 64,466 42,785 EBITDA (CLP Mill) EBITDA margin (%) Financial debt increased 19% between June 2014 and June 2015, mainly because of funding requirements for real estate development projects, for the construction of Los Hierros II hydropower plant, for the construction of Plaza Sucre parking concession, and for a Kipreos construction contract which will be paid at delivery. 17,897 19,433 23,319 A breakdown of financial debt by type of financing, shows that 41% (CLP 126,578 million), are current liabilities, mainly composed by the funding of real estate development projects (CLP 34,993 million), working capital credit lines of Besalco S.A. (CLP 30,841 million), leasing contracts of machinery (CLP 22,663 million), and working capital credit lines in consortium companies (CLP 13,020 million). On the other hand, 30% of total financial debt has been structured long term, and has funded concessions and energy projects. EBITDA 18.4% 16.7% 16.7% 10.9% 11.1% 12.6% 5.7% 2010 2011 2012 2013 2014 Jun'14 Jun'15 FINANCIAL DEBT AT JUNE 2015 21% Long Term Energy 22% Short Term Banks FINANCIAL DEBT CLP Mill Short Term Banks 66,689 Long Term Banks 28,108 LT Public Concessions Projects 30,190 15% Machinery Leasing CLP 308,605 million 9% Long Term Banks Real Estate Bank Projects 72,645 Machinery Leasing 47,321 Long Term Energy 63,653 Total Financial Debt 308,605 10% Long Term Public Concessions Projects 24% Real Estate Bank Projects 6
As a result of reaching completion in some contracts that had losses, and of less requirements for funding investments in renewable energy projects, the level of debt of the company remained relatively stable. The financial leverage was 1.7 times in June 2015, greater than the 1.4 times registered at the end of 2014. However, it is important to bear in mind that in December 2014, CLP 57,059 million of debt, funding two subsidiaries of Besalco Energía Renovable S.A., whose assets were available for sale (Los Hierros I and Los Hierros II hydropower plants), were not consolidated. Eventually, the assets were not sold, and therefore the debt became consolidated again, both in Besalco Energía Renovable S.A. and in Besalco S.A., during the first quarter of 2015, affecting the comparison base. Once accounting for this effect, the financial leverage index remained stable. Total leverage (times) Financial leverage (times) Financial leverage (times) (Including energy subsidiaries) 1.3 1.6 1.4 1.8 1.1 2.7 1.7 1.4 2.5 1.7 0.6 0.8 0.7 FINANCIAL DEBT FOR SUBSIDIARIES AT JUNE 2015 LEVERAGE 10% Public Concessions 2% Besco 2% Kipreos 2% Other Consortia 14% Besalco 9% Civil Works 2010 2011 2012 2013 2014 Jun'15 FINANCIAL DEBT June 2015 2014 BESALCO AND SUBSIDIARIES CLP Mill CLP Mill Besalco 42,503 56,359 Civil Works (i) 29,354 30,585 21% Energy CLP 308,605 million Machinery Services 52,776 52,586 Real Estate (i) 72,645 60,318 Energy (i) (ii) 63,653 - Public Concessions (i) 30,190 27,423 17% Machinery Services Besco 5,532 5,223 Kipreos (iii) 5,006 1,047 Other Consortia 6,946 8,015 Total Financial Debt 308,605 241,556 23% Real Estate (i) Financial debt. (ii) Debt Besalco Energy at December 2014: CLP 57,059 million. (iii) It includes Kipreos Ingeniería and Kipreos Aéreos. 7
construcciones s.a. (civil works) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues (CLP million) 66,902) 52,770) 27% 35,487) 20,354) 74% Gross profit (CLP million) 3,252) (3,852) -184% 1,529) (2,378) -164% Operating profit (CLP million) 2,308) (4,896) -147% 1,153) (2,873) -140% Net financial expenses (CLP million) (738) (679) 9% (278) (494) -44% Net income (CLP million) 1,694) (5,911) -129% 1,103) (3,555) -131% Net income attributable to shareholders 1,224) (6,078) -120% 884) (3,674) -124% (CLP million) EBITDA (CLP million) 3,461) (4,440) -178% 2,092) (2,707) -177% Financial leverage (times) 1.4) 2.5) Liquidity ratio (times) 1.2) 1.2) Total employees 3,407) 3,113) During the first half of 2015, the company started the construction of Talleres y Cocheras for Metro de Santiago; Ruta 90-San Fernando, for the Ministry of Public Works; and the repair work of Mall Plaza Copiapó, for Nuevos Desarrollos. In contrast to the first half of 2014, when some contracts reported significant losses (Mall Plaza Copiapó, hospitals of Talca and Copiapó), the current project portfolio of Besalco Construcciones is showing a healthy performance, with budget deviations within historical margins. At the end of June 2015, the company accumulated revenues of CLP 66,902 million (an increase of 27% compared to the same period of 2014), with a gross profit of CLP 3,252 million (a loss of CLP 3,852 million in 2014), and a net income attributable to shareholders of CLP 1,224 million (a loss of CLP 6,078 million in 2014). The gross profit margin of 4.9% of the first half of 2015 is below the 7.3% average of 2010-2012, but we expect to reach this level again with the consolidation of our current project portfolio, and the addition of new projects with a risk profile closer to Besalco Construcciones standards up until 2012. At the end of June 2015, Besalco Construcciones holds 27 contracts: 17 are carried out through consortia and 10 are being executed directly by this subsidiary. The backlog at the end of June 2015 is USD 220 million, 30% of the total backlog of Besalco S.A. The major part of this amount is explained by projects in execution for the Ministry of Public Works, Metro de Santiago, Cruz Blanca, and Nuevos Desarrollos. According to the schedule of the projects in the backlog, 42% of the works should be executed within 2015, 45% during 2016 and the remaining 13% in 2017. The agreement reached with Nuevos Desarrollos S.A., which solved the differences between the parties relative to the execution of the construction contract of Mall Plaza Copiapó, has been fulfilled, and substantial completion is expected for the third quarter of 2015. Additionally, Nuevos Desarrollos agreed with Besalco Construcciones the execution of repair work of the damages caused by the floods of March 2015. This commission was completed through the signing of a new contract, on a cost-plus basis. The company s management has implemented a strict plan of cost control and substantial changes in project management. Besides, a more conservative policy relative to the structuring of the project portfolio, and the resolution of some conflicting contracts, allow us to be optimistic about a sustained recovery of earnings in this subsidiary. BACKLOG (USD million) 458 373 223 238 220 2011 2012 2013 2014 Jun'15 8
maquinarias s.a. (machinery services) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues (CLP million) 34,982) 56,705) -38% 18,540) 30,903) -40% Gross profit (CLP million) 2,089) 9,050) -77% 1,104) 3,603) -69% Operating profit (CLP million) 1,079) 7,522) -86% 603) 2,658) -77% Net financial expenses (CLP million) (899) (912) -1% (472) (674) -30% Net income (CLP million) 1,951) 5,112) -62% 1,605) 2,150) -25% Net income attributable to shareholders 2,117) 5,112) -59% 1,619) 2,150) -25% (CLP million) EBITDA (CLP million) 10,079) 17,521) -42% 6,040) 9,807) -38% Financial leverage (times) 1.3) 1.1) Liquidity ratio (times) 0.9) 0.8) Total employees 1,814) 1,826) At the end of first half 2015, revenues reached CLP 34,982 million (a 38% decrease in comparison to the same period of 2014), gross profit was CLP 2,089 million (-77%), and net income attributable to shareholders reached CLP 2,117 million (-59%). The reduction in revenues, gross profit and net income between both periods is explained by a substantial decline in the mining industry, particularly in iron ore. EBITDA at the end of the first half of 2015 was CLP 10,079 million, 42% less than 2014. The EBITDA margin reached 28.8% in 2015 compared to 30.8% in 2014. The backlog at the end of June 2015 was USD 358 million, similar to that of December 2014. At the end of the period, the company held 34 active contracts, including customers such as Minera Escondida, Compañía Minera Punta de Lobos S.A., Soquimich, Codelco (El Teniente and Chuquicamata divisions) and Forestal Mininco, with contract terms that last until 2021. This subsidiary has managed to stay out of the strikes that have affected Codelco lately; it is not involved in Division El Salvador, and its activities in El Teniente and Chuquicamata divisions have not been disturbed. BACKLOG (USD million) 335 352 358 519 547 2011 2012 2013 2014 Jun'15 9
inmobiliaria s.a. (real estate development) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues (CLP million) 20,515) 8,169) 151% 11,492) 2,933) 292% Gross profit (CLP million) 3,750) 1,145) 227% 2,128) 265) 702% Operating profit (CLP million) 2,578) 40) 6,366% 1,605) (307) 623% Net financial expenses (CLP million) (852) (939) -9% (412) (411) 0% Net income (CLP million) 904) (1,169) 177% 453) (623) 173% Net income attributable to shareholders 1,033) (789) 231% 571) (431) 233% (CLP million) EBITDA (CLP million) 2,606) 230) 1,034% 1,611) (163) 1,091% Financial leverage (times) 2.4) 1.9) Liquidity ratio (times) 1.9) 1.7) Total employees 1,015) 856) 59 Type N N Total sales Sold (UF Thd.) For sale Pre-sales to be of dwelling projects units (UF Thd.) sales pre sales (UF Thd.) closed 2015 (*) Housing 10 814 4,210 503 2,180 1,527 1,247 Apartments 10 1,088 4,568 853 1,797 1,918 1,377 Total 20 1,902 8,778 1,356 3,977 3,445 2,624 BACKLOG (USD million) 23 35 49 44 (*) Pre-sold units as of June 2015, to be closed 2015. 2011 2012 2013 2014 Jun'15 At the end of first half 2015, sales reached UF 1,992,424, 103% higher than the same period of 2014. In term of units, 457 were sold during the first half of 2015, 53% more than those sold in the same period of 2014. Revenues, which account for registered sales, reached UF 709,796 in the first semester of 2015, compared to UF 324,640 in 2014. For the second half 2015 we expect to obtain municipal use permits for new stages of housing projects in Haras (San Bernardo), La Ballena (Puente Alto), Chamisero (Colina), and the apartment building Los Gomeros (Vitacura). Sales registration will continue for the buildings Travesía I (Viña del Mar), Panorama (Con Con), María Auxiliadora (San Miguel) and for the first stage of houses in Chamisero (Colina). The project Nova in Ñuñoa, which consists of two apartment towers plus a strip center, started the construction of its second building. The strip center, which will have a Lider Supermarket in its underground and other commercial areas plus parking in the surface, is currently in the process of obtaining its municipal use permit. As of June 2015, net income attributable to shareholders reached CLP 1,033 million. By the same date of 2014, this subsidiary showed a loss of CLP 789 million. At the end of June 2015, total leverage was 3.3 times and financial leverage was 2.4 times. This is explained by the large number of projects being developed, which is reflected in the increase in inventories from CLP 59,221 million in June 2014 to CLP 89,514 million in June 2015. 10
concesiones s.a. (public concessions) Construction work for the warehouses and offices of the sub-concession Bodegas Sur of Arturo Merino Benitez Airport have been progressing according to schedule, and its completion is expected for the end of August 2015. The start of operation is expected for the first quarter 2016. Construction work for Phase III of Convento Viejo reservoir project have a progress of 51% as of June 2015, which will allow to start servicing the irrigation network for a potential irrigation area of 4,600 hectares. The termination of construction for this phase is expected for 2017, with a potential irrigation area of 21,000 hectares. Construction work for Plaza Sucre concession in Viña del Mar, have continued to suffer significant delays, postponing completion to the end of September 2015, and operation for the last quarter of the year. Delays have been caused by late delivery of the construction site. Loss attributable to shareholders amounted to CLP 522 million at the end of first half 2015, compared to a loss of CLP 260 in 2014 for the same period. This loss can be mainly explained by the negative results obtained by Plaza Las Condes (a CLP 275 million loss) and Constructora CBA (a CLP 267 million loss), which were partially reversed by the profits of Convento Viejo (CLP 255 million, after adjusting for the 33.3% interest of Besalco in this company). PLAZA LAS CONDES (100%) Concession term 35 years Concession start up 2007 Operation start up 2009 Concession termination 2042 Total investment (UF) 519,066 Equity book & partners' subordin. debt (UF) 61,986 Value per DCF (UF) 244,600 SOCIEDAD CONCESIONARIA CONVENTO VIEJO (33.3%) Concession term 25 years Operation start up (Stage I) 2008 Concession termination 2030 Total investment (UF) 5,751,340 Investment to date (UF) 5,084,597 Subsidy incomes 1 st semester 2015 (UF) 681,000 Equity book (UF) 378,406 Value per DCF (UF) / 100% of the company 809,000 SOCIEDAD CONCESIONARIA BAS (33.3%) Concession term 20 years Operation start up 2006 Concession termination 2026 Total investment (without "claim") (UF) 3,450,000 Sub. construction incomes 1 st sem. 2015 (UF) 274,950 Sub. operating incomes 1 st sem. 2015 (UF) 367,619 Average internal N June 2015 6,139 Equity book (UF) 888,932 Value per DCF (UF) / 100% of the company 490,000 On the left hand side, we show an assessment of valuations for some of the concessions on which Besalco Concesiones S.A. owns an interest. Given the difficulty in conveying the information needed for cash flow projections for each concession, we release our estimate of market value for each of them. These values are obtained through the discounted cash flow (DCF) valuation method; the discount rate is determined assuming a risk-free rate of 1.65%, a beta coefficient of 0.99, and a riskpremium of 5.50, resulting in a discount rate of 7.10%. 11
energía renovable s.a. (renewable energy) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues (CLP million) 4,314) 5,061) -15% 2,646) 4,022) -34% Gross profit (CLP million) 1,410) 3,073) -54% 1,166) 2,996) -61% Operating profit (CLP million) 982) 2,711) -64% 992) 2,862) -65% Net financial expenses (CLP million) (1,551) (1,376) 13% (732) (696) 5% Net income (CLP million) 214) 842) -75% 202) 1,661) -88% Net income attributable to shareholders 211) 835) -75% 199) 1,647) -88% (CLP million) EBITDA (CLP million) 2,086) 3,600) -42% 1,379) 3,358) -59% Financial leverage (times) 5.9) 5.9) Liquidity ratio (times) 0.3) 0.4) Total employees 87) 65) Two run-of-the-river hydroelectric power plants are currently operating: Los Hierros I (25 MW), which started operations in January 2014 and Los Hierros II (5.5 MW), which started operations in January this year. Both are part of the El Melado hydroelectric complex, which uses water from the irrigation channel El Melado, and which also considers the construction and operation of three other power plants for a total additional power of 32 MW. Power generation of Los Hierros I during the first half of 2015 was 49 GWh, 9% higher than the same period last year. For its part, Los Hierros II generated 8.5 GWh. Both power plants supply the Central Interconnected System [Sistema Interconectado Central, SIC by its Spanish acronym], at the electrical system s marginal cost (spot), with an average weighted price for power generation in the first half of 2015, of USD 126/MWh. In addition to the power plants, Besalco Energía Renovable holds a team of 89 engineers and technicians, for the development of new energy projects. At the end of first half 2015, the business unit obtained net income attributable to shareholders of CLP 211 million, with an EBITDA of CLP 2,086 million, on revenues of CLP 4,314 million. Net income was 15% less than that of 2014 on the same period, due to a decrease in energy prices and to the inclusion of a non-recurrent revenue item (CLP 1,094 million), in the period ending June 2014, which affects the comparison base. EBITDA was 42% lower to that of the same period in 2014, partly as a result of the effects already mentioned, and also to an increase in operational costs of 2014 that were recognized in 2015, once again affecting the comparison base. The debt of Los Hierros I is being served normally, and the debt of Los Hierros II of USD 20 million, has already been structured for long term until 2026, with a 40% bullet. MARGINAL COSTS USD/MWH - SUBSTATION ANCOA 220KV (SPOT PRICE) USD/MWh 250 225 200 175 150 125 100 75 50 25 0 jan mar may jul sep nov jan mar may jul sep nov jan mar may jul 2013 2014 2015 12
md montajes s.a. (industrial constructions) (60% besalco) Revenues (CLP million) 4,093) 17,832) -77% 3,344) 7,129) -53% Gross profit (CLP million) 1,004) 2,576) -61% 433) 3,073) -86% Operating profit (CLP million) (82) 1,826) -104% (41) 2,633) -102% Net financial expenses (CLP million) 101) (19) -629% 39) (18) -312% Net income (CLP million) 28) 465) -94% 15) 1,080) -99% Net income attributable to shareholders 28) 465) -94% 15) 1,080) -99% (CLP million) EBITDA (CLP million) 32) 494) -94% 16) 1,244) -99% Financial leverage (times) -) -) Liquidity ratio (times) 4.2) 2.9) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Total employees 499) 106) At the end of first half 2015, revenues reached CLP 4,093 million, a 53% decrease relative to those of the same period last year. Gross profit margin was 24.5%, a 14.4% higher than that of 2014. EBITDA in June 2015 was CLP 32 million, a 94% decrease in relation to the previous period. Net income attributable to shareholders reached CLP 28 million, a substantial decrease in comparison to profits of CLP 465 million in 2014. The company has been strongly hit by the downturn in mining investment, given its high exposure to that market. As of June 2015, this subsidiary holds a backlog of USD 10.5 million, made up by two projects: Habilitación Chimenea ex Horno Reverbero, for Codelco Division El Salvador, and Obras de Captación y Conducción Tada, for Codelco Division Andina. These contracts should be completed between September 2015 and September 2016. The company is actively bidding for new projects both for public and private customers. BACKLOG (USD million) 14 8 4 34 38 2011 2012 2013 2014 Jun'15 13
besco s.a. (peru) June 2015 June 2014 Variation II T 2015 II T 2014 Variation Revenues (CLP million) 9,663) 4,009) 141% 2,833) 2,215) 28% Gross profit (CLP million) 2,697) 1,575) 71% 1,295) 897) 44% Operating profit (CLP million) 1,955) 1,062) 84% 743) 699) 6% Net financial expenses (CLP million) (98) 6) -1,888% (53) 2) -2,235% Net income (CLP million) 969) 1,280) -24% 345) 319) 8% Net income attributable to shareholders 980) 1,305) -25% 333) 337) -1% (CLP million) EBITDA (CLP million) 1,528) 1,431) 7% 507) 362) 40% Financial leverage (times) 0.3) 0.1) Liquidity ratio (times)) 2.1) 2.2) 29 Total employees 240) 275) CRÉDITOS DESEMBOLSADOS FONDO MIVIVIENDA EN EL MERCADO HIPOTECARIO (CIFRAS EN MILLONES DE NUEVOS SOLES AL 30 DE JUNIO DE 2015) BACKLOG (USD million) 19 12 22 10 Fuente: Superintendencia de Banca, Seguros y AFP y Fondo Mivivienda S.A. 676,733 705,166 813,396 697,201 800,208 834,009 694,810 699,351 832,979 745,082 783,992 748,466 598,566 670,364 933,775 796,837 835,492 15.3 103,337 16.0 113,117 12.4 12.7 101,022 88,225 13.5 108,260 11.2 93,148 14.3 14.3 99,567 100,041 11.8 98,369 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 12.7 94,962 The company is currently developing seven real estate projects, for a total of 3,628 units. Sales at the end of the first half reached 2,471 units, while revenues from 1,699 units have been recorded in the financial statements closing in June 2015. Revenues of the first half 2015 more than doubled those of 2014, with an amount of CLP 9,663 million. This increase is partly due to the consolidation of the subsidiary s own projects, in comparison to 2014, where the proportion of projects in consortia which did not consolidate was higher. Sales in some projects have been negatively affected by the slowdown in Peru s economy. However, the market segment in which Besco operates is made up by 12.1 95,084 11.7 87,272 14.7 88,064 11.5 77,322 8.9 8.8 8.6 2014 2015 FMV S.A. Total Sistema Financiero Tasa de participación del FMV S.A. (%) 82,852 69,994 71,597 82,343 2011 2012 2013 2014 Jun'15 customers that qualify for state subsidies of Mi Vivienda program, which we believe might be boosted by counter cyclical government policies should the slowdown continue. In the month of June 2015, Mi Vivienda loan placements increased to 817, reaching their highest level since December 2014. In the first half of 2015, Mi Vivienda loan placements reached 4,164, contracting in 25% in relation to the same period of 2014. In monetary terms, S/. 472.1 million were disbursed, descending 22% interannually. As of June 30th 2015, the book balance of the mortgage portfolio of the Fondo Mi Vivienda S.A. (FMV) amounted to S/. 5,578 million, expanding 1% in relation to May and 15.1% compared to June 2014. Meanwhile, net income attributable to shareholders reached CLP 980 million during the first half, a 25% decrease relative to 2014. This is due to the variability in the registration of sale contracts. In addition, a prosperous project in consortium that contributed with positive results (Parque Central), was at its terminal stage last year. Conversely, results from the new megaproject Los Parques de Comas have not yet made a contribution to net income. In terms of EBITDA, it is important to highlight a semi-annual increase of 7%. 14
kipreos (civil works for energy transmission) KIPREOS INGENIERÍA (68% BESALCO) KIPREOS AÉREOS (68% BESALCO) June 2015 June 2014 Variation II T 2015 June 2015 June 2014 Variation II T 2015 Revenues (CLP million) 14,981) 17,216) -13% 6,308) 1,403) 561) 150% 221) Gross profit (CLP million) 1,844) 2,084) -11% 1,620) 657) 92) 611% 143) Operating profit (CLP million) 1,151) 1,319) -13% 1,210) 583) 44) 1,237% 121) Net financial expenses (CLP million) (59) (40) 46% 5) (5) (6) -7% (1) Net income (CLP million) 814) 965) -16% 855) 535) 37) 1,365% 51) Net income attributable to shareholders 814) 965) -16% 855) 535) 37) 1,365% 51) (CLP million) EBITDA (CLP million) 1,317) 1,530) -14% 1,572) 637) 98) 552% 121) Financial leverage (times) 1.0) 0.0) 0.1) 0.2) Liquidity ratio (times) 1.2) 1.2) 2.3) 1.6) Total employees 707) 1,047) 20) 25) During the first half of the year, the company continued with the execution of its main projects in the Central Interconnected System [Sistema Interconectado Central, SIC by its Spanish acronym]. Consolidating its performance of 2014 when it reached record levels in revenues, profits and operational cash flow, the current project portfolio of Kipreos Ingenieros keeps showing good results. At the end of June 2015, the company accumulated revenues of CLP 14,981 million (a negative variation of 13% relative to the same period of 2014), which generated a gross profit of CLP 1,844 million (-11%), and a net income attributable to shareholders of CLP 1,224 million (-16%). The decrease shown in these figures is mainly explained by a 4-week work disruption in the project Cardones-Diego de Almagro, caused by strong rains and floods that affected the north of Chile. The 12.3% gross profit margin reached during the first half is slightly higher than that of 2014 (12.1%). At the end of June 2015, Kipreos Ingenieros holds a backlog of USD 98 million. This figure, weighted by 68% of the property of Besalco in this subsidiary, is USD 67 million or 9% of the total backlog of Besalco to that date. Within the company s backlog, the following contracts can be highlighted: the EPC contracts with ELETRANS for works in the Central Interconnected System (SIC), consisting of the first and second circuits of the transmission lines Ciruelos-Pichirropulli and Cardones-Diego de Almagro; the EPC contract with ENEL Green Power for Conchi and Cerro Pabellón substations of the geothermic power generation project Cerro Pabellón; and the construction contract with TRANSNET for the execution of reinforcement works for the transmission system of Maule substation. Accroding to the schedule of works for projects in the backlog, 42% of the amount should be executed within what is left of 2015, 46% during 2016 and the remaining 12% in 2017. The management of Kipreos Ingenieros continues to focus on the correct execution of current contracts and the procurement of new contracts with attractive contribution margins, within its specialty areas. BACKLOG (USD million) 10 77 75 70 67 2011 2012 2013 2014 Jun'15 15