CIMIC : FY15 Investor Presentation CIMIC FY15 Investor Presentation(PDF File 1.7 MB)

Microsoft PowerPoint - FY-15_Presentation-Final.pptx

FULL YEAR RESULTS 2015

Marcelino Fernández Verdes / Angel Muriel 10 February 2016

2015 financial highlights

Solid increase in NPAT1 to $520.4m up 19.9%

• At the top end of guidance of $450‐$520m

• EBIT margin 6.3%2 up 150bp yoy and NPAT margin 3.9% up 130bp

  
  

  Strong balance sheet position; net cash3 over $1.1b (+$487m yoy)

  
  

• Net cash (including operating leases) up over $500m4 to $528m

• Net contract debtors5 down 24% yoy to under $1.5b, despite foreign exchange effects

  
  

  Cash flow from operating activities6 of $1.9b, up over $500m yoy

  
  

• Gross capex7 reduced by $439m to $266m

• Free operating cash flow8 increased by $745m to $1.2b

  
  

  WIH9 of $29b evolving firmly

  
  

• Solid level of new work10 of $14.1b FY15

• Strong pipeline11 of infrastructure and mining projects expected to be awarded (≈ $60b in FY16, 60% in Australia and New Zealand; ≈ $170b in FY17 and FY18, 70% in Australia and New Zealand)

  
  

  2016 NPAT guidance in the range of $520‐$580m

  
  

• Focus on sustainable level of profits and cash flow

• Continue to further diversify by geography (new markets) and commodity (contract mining)

• Robust balance sheet flexibility to pursue future growth and potential market opportunities

• Strong focus on risk management unchanged

  
  

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  Improved operating results

  
  

  
  

  Improved operating results

  
  

  • NPAT $520m up 19.9% yoy (margin 3.9% up 130bp yoy)

  • PBT $735m up 11.2% yoy (margin 5.5% up 160bp yoy)

  • EBIT $839m up 3.2% yoy (EBIT margin 6.3% up 150bp yoy)

    
    

    • Both construction and contract mining showed improved margins and profit

    • Significant margin enhancement due to improved project delivery

    • Substantial fall in net financial cost

Financial Performance ($m)	FY14 Comparable	FY15	Chg. % FY
Group Revenue12	18,406.0	16,218.7	(11.9%)
Revenue Joint Venture and Associates	(1,530.2)	(2,848.0)	86.1%
Revenue	16,875.8	13,370.7	(20.8%)
Interest income	(87.8)	(89.9)	2.4%
Revenue excluding interest	16,788.0	13,280.8	(20.9%)
EBIT	813.1	838.9	3.2%
EBIT margin	4.8%	6.3%	150bp
Net finance costs13	(152.2)	(103.9)	(31.7%)
Profit before tax	660.9	735.0	11.2%
PBT margin	3.9%	5.5%	160bp
Income tax	(224.6)	(220.6)	(1.8%)
Profit for the year	436.3	514.4	17.9%
Non‐controlling interests	(2.1)	6.0	(385.7%)
NPAT from continuing operations	434.2	520.4	19.9%
NPAT margin	2.6%	3.9%	130bp
NPAT from discontinued operations	714.8	‐
Profit for the year attributable to members	1,149.0	520.4

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Balance sheet strength enhanced

Strong net cash position achieved

• Net cash (excluding operating leases) up nearly $500m yoy to over $1.1b

• Net cash (including operating leases) up over $500m to $528m

• Improvement due to strong operating cash inflows and working capital management

  
  

  Significant reduction in net contract debtors of $466m

• Net contract debtors reduced to under $1.5b

• Adjusting for foreign exchange effect, reduction even greater

  
  

  Important reduction in finance costs

• Net finance costs reduced from $152m to $104m

• Avg. cost of debt reduced by

  • Reduction of margin in working capital and bonding facilities

  • Debt buy back (one‐off cost in 1H15)

  • Efficient financial management

Balance sheet ($m)	December 2014 Proforma	December 2015	Chg. % FY	Chg. FY
Net cash	624.8	1,111.5	77.9%	486.7
Operating leases	(604.8)	(583.4)	(3.5%)	21.4
Net cash (incl. op. leases)	20.0	528.1	2,540.5%	508.1
Net contract debtors	1,965.1	1,499.2	(23.7%)	(465.9)

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