intermediary results 2015 - cfe · 2020. 5. 14. · headlines first half 2015 orderbook...

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Intermediary results 2015

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Headlines First Half 2015

Order book increases with +24.9%, reaching € 4,455 million at June 30, 2015

Order book in the dredging division increased with 38.9% thanks to major contracts representing € 1,600million obtained during Q1 2015, including mainly the phase 1 of the Tuas terminal in Singapore

Turnover decreases with ‐7.3% reaching € 1,644 million, resulting mainly from the decrease with ‐3.4 %in the dredging division and with ‐17.9% in the contracting division

EBIT increases with +55.6%(*) reaching € 152.7 million

Dredging division outperformed expectations thanks to the successful execution and finalization of worksrelated to projects Wheatstone, New Doha Port, New Suez Canal and Northwind. Level of EBITDA increased significantly reaching € 302.6 million(**), representing 24.8% compared with

16.5% in 1HY 2014

Contracting division incurred losses (€ ‐23.3 million EBIT) namely due to loss making contracts in buildingand civil engineering segment and to restructuring activities in the International segment.

Net financial debt increases reaching € 412 million, compared with € 188 million at year‐end 2014

acquisition by DEME of an additional 50% of HGO mainly contributed to this increase

(*) Variation in comparison with pro‐forma consolidated financial statements of 1HY 2014, including impact of the finalization of the purchase accounting on DEME(**) EBITDA Combined, including the share in the EBITDA of associated companies

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Headlines First Half 2015

Guidance

Favourable outlook for the Dredging and Environment division

Favourable outlook for the Real Estate Development division

Recovery and activity refocusing process in Contracting division will continue over thecoming months

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Key figures ‐ consolidatedKey financials (in million EUR)

2014 1HY14 (*) 1HY15

Revenues 3,510.5 1,773.5 1,643.5

Growth rate 4,9% 12.4% -7.3%

EBITDA 479.5 206.3 276.0

EBITDA margin 13.7% 11.6% 16.8%

EBIT 240.5 98.1 152.7

EBIT margin 6.9% 5.5% 9.3%

Recurring net result 159.9 64.3 110.9

Net recurring margin 4.6% 3.6% 6,7%

Net result 159.9 64.3 110.9

Order book 3,565.8 3,921.1 4,455.2

Net financial debt 188.1 552.6 412.1

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(*) Restated for the impact of entries specific to the business combination of DEME

EBIT = operating result on activity + share in the result of associated companiesEBITDA = operating result on activity + depreciations + other non cash items

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Contracting activity

72%

28%

CFE : a multidisciplinary contractor

PPP-Concessions

19% stake in PPP Schulen Eupen 45% stake in Rent-A-Port, Rent-A-

Port Energy 25% stake in Locorail 18% stake in Coentunnel 20% stake in Bizerte

Multitechnics Electrical contracting Installation of high tension lines Industrial & process automation HVAC

signalization and track-laying works railway works, railway overhead

lines transport of energy high and low

voltage lines

Rail-Infra

Real estate development Specific associated services:

- Project management- Property management

Real Estate

Buildings – offices, industrial, commercial and residential

Infrastructure projects - tunnels, bridges, roads

Construction

Expressed in % of revenues

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Dredging and Environment

Capital dredging Maintenance dredging Marine works Fallpipe & landfalls Environmental business

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January 2015: The Board of Directors of CFE has decided to create a Contracting division under CFE, which will

ultimately include all the construction, multitechnics and rail activities. A similar centralizationprocess will also be applied to the real estate development activities, which will be headed by BPI.

The Board of Directors of CFE has also decided, in agreement with Renaud Bentégeat, to appointPiet Dejonghe as second managing director.

Key facts First Half 2015

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January 2015: Inauguration of the Music Chapel Queen Elisabeth (construction: Amart).


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February 2015: In the beginning of 2015, DEME secured a number of new contracts worldwide for a total value

of approximately € 1,600 million, including mainly :

In Singapore, the Tuas Terminal Phase 1 Reclamation, WharfConstruction and Dredging Project, consisting in the construction of8.6 kilometers of quay wall, the reclamation of about 300 hectares ofnew land and the dredging of the fairways. Works awarded to a JVDredging International / Daelim Industrial Co have to be completedwithin six years.

In Nigeria, a contract for the development of the remaining phases ofthe EKO Atlantic City project in Lagos. Some 500 hectares of landhave been created so far. The phases 3 till 6 include the reclamationof 42 million m³. Works will be executed over 3 to 4 years.

Maintenance dredging works in Belgium (five-year maintenance onthe Scheldt River) and in Germany (two-year maintenance on theWeser River).

Other contracts have been won in India, La Réunion (France) andNigeria.


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April 2015: Foundation stone ceremony of the 'Galerie Kons' project situated near the railway station of

Luxembourg.

This project has been developedby CLI in partnership with twoBelgian real estate developers.Construction works are realized byCLE in joined venture with a localpartner.


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April 2015: Official inauguration of the phase 1 of the Spoortunnel Delft built by a joint venture

CFE/Mobilis/Dura Vermeer. The second phase of this project has started. In this phase, the existing railway viaduct will be

demolished, and a casco tunnel will be build. The delivery date is foreseen in 2018


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May 2015: Mid October 2014, GeoSea announced the upcoming acquisition of offshore assets of

HOCHTIEF, one of Germany’s leading international construction groups.

The financial close of the transactionhas been achieved in May 2015

HOCHTIEF is selling all its offshoreassets to marine contractor and long-term partner GeoSea. GeoSea acquiresfull control of jack-up vessels ‘Innovation’and ‘Thor’ and pontoons ‘Wismar’,‘Bremen’ and ‘Stralsund’. The vessel‘Vidar’ will be transferred uponcompletion of a current HOCHTIEFproject. GeoSea also takes over someobligations with regard to personnel.


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July 2015: DEME, Alstom and Merkur Offshore sign a contract for the delivery and installation of 66

Haliade offshore wind turbines in Germany.

MEG 1erkur Offshore has signed with respectivelyAlstom and DEME a binding Turbine SupplyAgreement and Balance of Plant Contract for theconstruction of the Merkur Offshore wind farm,including supply and installation of 66 AlstomHaliade 150-6MW offshore wind turbines.

The Merkur Offshore wind farm is located 45 kmnorth of Borkum in the North Sea.

The construction will start in 2016 and will beundertaken by GeoSea, member of the DEMEGroup.


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July: BPI (Group CFE), through its subsidiary CLI, acquired on July 9, 2015, in partnership, a plot

of land located in Luxembourg city and allowing the development of a 40,000 sqmresidential and commercial project.


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August 2015: DEME celebrates successful completion new Suez Canal and participates in opening ceremony in

Egypt on 6 August 2015.

In October 2014, the DEME consortium wasawarded lot 6 with a contract value amounting to540 million US dollars (421.3 million EUR). TheSuez Canal Authority (SCA) hencecommissioned the realisation of an additional250-metre-wide, 24-metre-deep, and 29.5-kilometre-long fairway through the Great BitterLake.

For the realisation of this project, DEMEgathered a rarely seen fleet of as many as 4cutter suction dredgers, 6 suction hopperdredgers and 42 auxiliary vessels. Themobilisation and execution of the contract werecarried out within a strict schedule and facedimportant logistical challenges such as theaccommodation for 950 staff members and thesupply of 20 kilometres of pipelines, cranes,generators, spare parts, etc.


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An eye on the divisions

Dredging & environmental division

Contracting division

Real estate division

PPP – Concessions division

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Dredging & environmental division

Wheatstone (Australia)

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Key financials (€m) 2014 1H14 2H14 1H15

Revenues (*) 2,419.7 1,212.3 1,207.4 1,171.0

Revenues Combined (**) 2,586.9 1,305.6 1,281.3 1,218.7

EBITDA (*) 443.6 191.7 251.9 276.3

EBITDA margin (*) 18.3% 15.8% 20.9% 23.6%

EBITDA Combined (**) 501.5 215.4 286.1 302.6

EBITDA Combined margin (**) 19.4% 16.5% 22.3% 24.8%

EBIT (***) 248.9 100.4 148.5 180.3

EBIT margin (***) 10.3% 8.3% 12.3% 15.4%

Net result 168.9 62.6 106.3 119.8

Net margin 6.5% 4.8% 8.3% 9.8%

Capex 165.4 45.0 120.4 336.7

Net Fin. Debt (*) 126.8 416.3 126.8 337.0

Order book (**) 2,420.0 2,805.5 2,420.0 3,362.0

Dredging & environmental division : DEMEOrder book increased with +39%, reaching € 3,362million. Despite the significant level of activity, DEMEmanaged to further improve its order book thanks tomajor new orders won during 1HY15. In February, several contracts worldwide have

been won for total value of approximately € 1,600million (mainly the Tuas Terminal Phase 1 inSingapore and Eko Atlantic Phase 3 in Nigeria).

Furthermore, in July DEME signed a contract for thedelivery and installation of 66 offshore wind turbines forthe Merkur Offshore wind farm in Germany (not yet in theorderbook at June 30, 2015).

Although slightly down, activity (combined) remainssustained due mainly to activity from the widening anddeepening of the Suez Canal and from wind farm projectsGodewind (Germany) and Kentish Flats (UK).

EBITDA Combined increases with +40.5% reaching24.8% margin boosted mainly the successful executionand finalization of works related to projects Wheatstone,New Doha Port, New Suez Canal, Hay Point andNorthwind.

Net financial debt increased with € 210.2 million dueto the acquisition of HGO, the increased level of CAPEXduring 1HY 2015, partially compensated by a strong cashflow from operations.

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(*) After impact of (i) IFRS 11: joint ventures integrated based on equity method (accounting view) (**) Before impact of IFRS 11: joint ventures integrated proportionaly (economic view) (***) Including the share in the result of associated companies

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Dredging & environmental division : DEME Worldwide activities

Well balanced worldwide activity spread

Capital dredging55%

Maintenance dredging10%

Fallpipe and landfalls5%

Environmental activities9%

Marine works, DBM, GeoSea, Scaldis

21%

1HY 20152014

Share of Capital dredging remains constant

Level of Marine works increases

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Capital dredging55%

Maintenance dredging11%

Fallpipe and landfalls9%

Environmental activities7%

Marine works, DBM, GeoSea, Scaldis

18%

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Dredging & environmental division : DEME Worldwide activities

Well balanced worldwide region spread

Europe non EU

0%

Middle East6% India,

Pakistan4%

Africa39%

America6%

Asia & Oceania

11%

Europe - EU33%

1HY 20152014

Share of activities in Africa increases (impact of project New Suez Canal)

Share of activities Australia decreases (finalization of Wheatstone project)

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Europe non EU7% Middle East

8%India,

Pakistan1%

Africa14%

America6%

Asia & Oceania

30%

Europe - EU34%

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DEME completed in 2012 its ambitious investment program which started in 2008. From 2008 till 2012 DEME spent almost two billion euro on the extension, upgrading and modernization of its fleet.

During 1HY2015 GeoSea acquired the offshore assets from HOCHTIEF, including: full ownership of the heavy-lift jack-up vessel ‘Innovation’ (previously owned for 50%), pontoons ‘Wismar’, ‘Bremen’ and ‘Stralsund’, and jack-up vessel ‘Thor’.

DEME also decided to further invest in seven new vessels, including: two vessels servicing the offshore energy market: the multipurpose fall-pipe vessel ‘Living Stone’, and the self-propelled

jack-up vessel ‘Apollo’, two suction hopper dredgers ‘Sheldt River’ and ‘Minerva’, the self-propelled crane ship ‘Rambiz 4000’, and the trailing suction hopper ‘Uilenspiegel XD’ and vessel ‘Zeeland 2.0’.

Dredging & environmental division CAPEX

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290405 372 369

99 165337277

567

9721.344

1.713 1.8121.978 2.314

0200400600800

1.0001.2001.4001.6001.8002.0002.2002.4002.600

2008 2009 2010 2011 2012 2013 2014 1HY2015

In million Euro

Capex Capex cumul since 2008

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Contracting division

AZ Sint‐Maarten ‐Mechelen

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Revenues 1,073.3 564.6 508.7 463,7

EBITDA 26.9 18.5 8.4 (1.1)

EBITDA margin 2.5% 3.3% 1.7% (0.2%)

EBIT (*) (7.5) 5.8 (13.3) (23.3)

EBIT margin (0.7%) 1.0% (2.6%) (5.0%)

Net result (14.5) 2.2 (16.7) (18.9)

Net margin (1.4%) 0.4% (3.3%) (4.1%)

Order book 1,127.2 1,085.6 1,127.2 1,080.4

Contracting divisionThe order book decreased with -4% amounting to € 1,080 million

Orders in civil engineering segment are still slowing down.

Order book in the building segment (-11%) decreases mainly inBrussels and in Luxembourg, while growing slightly in Walloniaand in Flanders.

Growth of the order book in the international segment (+31%) ismainly resulting from a supply contract awarded to CFENigeria.

Activity yoy decreases with -18% (€ -101 million). Activity is substantially down in all segments of the division, but

more particularly in civil engineering and in InternationalBuilding, where the process of refocusing activities continues.

Fall of activity in the Multitechnics & Rail Infra is mainlyresulting from the sale of the road activities in the beginning of2015.

EBIT is negative with € -23 million namely due to: Loss making contracts in building segment in Brussels and in

civil engineering segment. Weight of overhead costs in civil engineering entities facing

falling activity. Restructuring activities in the international segment. However satisfactory level of EBIT has been generated by

construction division in Flanders and in Poland, as well as byMultitechnics & Rail Infra.

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Breakdown orderbook 1/07/15 1/01/15 Variance Value % Value %Civil Engineering 149 14% 169 15% -20 -12%Buildings Benelux 579 54% 651 58% -72 -11%Buildings International 164 15% 125 11% +39 +31%Construction 892 83% 945 84% -53 Multitechnics & Rail Infra 188 17% 182 16% +6 +3%Total Contracting 1,080 100% 1,127 100% -47 -4%

Breakdown turnover 1HY15 1HY14 Variance Value % Value %Civil Engineering 44 9% 59 10% -15 -25%Buildings Benelux 251 54% 276 49% -25 -9%Buildings International 72 16% 92 16% -20 -22%Construction 367 79% 427 76% -60 -14% Multitechnics & Rail Infra 97 21% 138 24% -41 -30%Total Contracting 464 100% 565 100% -101 -18%

(*) Including the share in the result of associated companies

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Real Estate division

Project Wola Tarasy – Warsaw (PL)

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Capital employed is decreasing, reaching € 131 millionas of June 30, 2015, as a result from the fact that : BPI disposed its stake in a hotel in Brussels. This

transaction had no impact on the division’s result. Residential projects in Luxembourg and in Belgium

(Edengreen and Ernest) are commercializedsuccessfully.

EBIT amounts to € 2.7 million in 1HY15 (compared to€ -0.7 million in 1HY14). This higher level of EBIT is mainlyexplained by: Successful commercialization of residential projects in

Belgium (Ernest and Oosteroever) and in Luxembourg(Edengreen).

Sale of some plots of land (Erasme and Harelbeke).

Project Oosteroever ‐ Ostend

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Revenues 45.6 3.9 41.7 13.4

EBIT (*) 7.1 0.7 6.4 2.7

Net result 4.3 (0.1) 4.4 1.4

Capital employed 134 147 134 131

% EBIT/Cap.employed 5.3% ‐ ‐ 4.1%


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Breakdown of capital employed2014 - 1HY 2015

Design & Development

52%Construction39%

Unsold units, post construction

delivery9%

1HY 20152014

Percentage of capital employed related to finalized estates not yet sold remains low (9%).

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Design & Development

46%

Construction42%

Unsold units, post construction

delivery12%


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PPP‐Concessions division

Coentunnel

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PPP‐Concessions division

Net result reaches € 1.9 million in 1HY15, comparedwith break-even in 1HY14, including namely:

dividend income of € 0.9 million from PPP projectCoentunnel having now entered in itsmaintenance phase

net result from Rent-A-port of € 0.4 million

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Project Dinh Vu port area – Hai Phong (Vietnam)


Revenues 0.8 0.3 0.5 0.7

EBIT (*) 2.5 (1.2) 3.7 (1.7)

Net result 2.2 0.0 2.2 1.9


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Synthesis

GROUP CFE

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Order book evolution

954 1.172 1.196 1.196 1.310 1.127 1.080

9,4 178 14 14 10

954

2916

968

2.420

3.0493.3173.362

1.0611.202

1.659

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

2009 2010 2011 2012 (DEME at50%)

2012 (DEME at100%)

2013 (DEME at100%)

2014 1HY15

(€m

)

Contracting Real Estate and management services Dredging

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Order book increases with +24.9%, reaching € 4,455 million at June 30, 2015. Increase in the dredging division (+38.9%) is partly compensated by the decrease in the contracting division (-4.4%).

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Recurring operational result (EBIT(*))Segment breakdown

5,8(23,3)

0,72,7

(1,2)

(1,7)

100,5

180,3

(50)

0

50

100

150

200

1HY14 1HY15

(€m

)

Contracting division Real Estate division PPP-Concessions division Dredging & environmental division

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Key financials (€m) 2014 1HY 2015

Non-current assets 2,183.5 2,442.8

Current assets 2,032.0 1,808.2

Total assets 4,215.5 4,251.0

Shareholders equity 1,320.9 1,377.3

Non-current liabilities 1,000.1 1,008.9

Current liabilities 1,894.5 1,864.8

Total equity and liabilities 4,215.5 4,251.0

Capital employed(1) 1,509.0 1,789.4

ROCE (REBIT/CE) 16.0% 17.1%

Net financial debt(2) 188.1 412.1

Statement of financial position‐consolidated

Notes : (1) Capital employed is defined as net financial debt + shareholders equity(2) The net financial debt excludes the fair values of financial investments

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Net financial debt evolution

NFD increased with € 224 million during 1HY15: from € 188 million at YE 2014 to € 412 million at June 30, 2015 mainly explained by DEME increasing its NFD with € 210 million as a result from :

the acquisition of an additional 50% of HGO (accounted for based on the equity method at YE14, vs. fullconsolidation at June 30, 2015)

the growing CAPEX during 1HY15, partially compensated by strong cash flow from operations.

(*) Including 100% of the NFD of DEME(**) After impact of IFRS 10 & 11, and of the finalization of the purchase accounting on DEME

-29 -60 -63-137

-54 -69

-742 -711

-533 -416

-127

-337

-9

-10

-6

-7

-9-9

(900)

(800)

(700)

(600)

(500)

(400)

(300)

(200)

(100)

0

2012 (*) 2013 2013 Restated(**)

1HY 2014 2014 1HY2015

(€m

)

CFE excl. DEME DEME Accrued interests PPA DEME

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No of shares: 25,314,482

Share price (27-Aug-15) : 119.25 EUR

Market Cap (27-Aug-15) : 3,018,752 KEUR

Shareholders :

AvH : 60.40%VINCI : 12.11%Free float : 27.49%

Share price performance:

1M 3M 12MCFE -4.1% +6.8% +48.6%

Shareholders and share performance

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Shareholders agenda

November 20, 2015 (before stock exchange) Intermediary publication Q3

February 26, 2016 (before stock exchange) Publication of year results 2015

May 5, 2016 Ordinary Shareholders’ meeting

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intermediary results 2015 - cfe · 2020. 5. 14. · headlines first half 2015 orderbook...

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