Corporacin Amrica Airports Investor Presentation Disclaimer This - - PowerPoint PPT Presentation
Corporacin Amrica Airports Investor Presentation Disclaimer This - - PowerPoint PPT Presentation
Corporacin Amrica Airports Investor Presentation Disclaimer This presentation has been prepared and issued by Corporacin Amrica Airports S.A. (CAAP, Corporacin Amrica Airports or the Company) solely for your
Disclaimer
This presentation has been prepared and issued by Corporación América Airports S.A. (“CAAP”, “Corporación América Airports” or the “Company”) solely for your information. By attending the meeting and viewing this presentation, you agree to be bound by the following limitations. For the avoidance of doubt, references to the Company shall be deemed to include any successor thereto. This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any common shares or any other securities of the Company, nor shall it or any part of it, nor the fact of its distribution, form part of or be relied on in connection with any contract or investment decision relating thereto. This presentation does not constitute a recommendation regarding the securities of the Company. This document and its contents are confidential and may not be further copied, distributed or passed on, directly or indirectly, to any other person or published or reproduced directly or indirectly, in whole or in part, by any medium or in any form for any purpose. Neither this document nor any part or copy of it may be taken or transmitted into or distributed in or into, directly or indirectly, the United States, its territories or possessions or Canada. Any failure to comply with these restrictions may constitute a violation of US or Canadian securities laws, respectively. The distribution of this document in jurisdictions other than U.S. or Canada may also be restricted by law, and persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. This document is not an offer of securities for sale in the United States or elsewhere. The Company’s common shares have not been registered under the United States Securities Act of 1933 (the “Securities Act”) and may not be offered or sold in the United States unless they are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act. The information in this presentation has not been legally verified by the Company, its advisers or any other person and may be subject to updating, completion, revision and amendment and such information may change materially. This presentation speaks at the date hereof. No representation or warranty, express or implied, is or will be made by or on behalf of the Company, its advisers or any of their respective directors, officers or employees, or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this presentation and any reliance you place on them will be at your sole risk. In particular the market data has been obtained by the Company from third party sources. Whilst the Company has compiled and extracted the market data, it can provide no assurances of the accuracy and completeness of such information and take no responsibility for such data. The Company is under no obligation to update or keep current the information contained in this presentation and any opinions expressed in it are subject to change without notice. None of the Company, its advisers
- r any of their respective members, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or
its contents or otherwise arising in connection therewith. Statements, beliefs and opinions contained in this presentation, particularly those regarding the possible or assumed future or other performance of the Company, industry growth or other trend projections, are or may be forward looking statements, beliefs or opinions and reflect the Company’s current expectations and projections about future events and are subject to risks and uncertainties that may cause actual results to differ materially. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. These risks and uncertainties include, among other factors, changing business or other market conditions and the prospects for growth anticipated by the management of the Company. These and other factors could adversely affect the outcome and financial effects of the plans and events described herein. As a result, there can be no assurance that projected results or developments will be attained and you are cautioned not to place undue reliance on such forward-looking statements. The Company, its advisers and each of their respective directors, officers and employees disclaim any obligation to update the Company's view of such risks and uncertainties or to publicly announce the result
- f any revision to the forward-looking statements made herein, except where it would be required to do so under applicable law.
By attending the presentation to which this document relates you will be taken to have represented, warranted and undertaken that: (i) you have read and agree to comply with the contents of this notice, including, without limitation, the obligation to keep this presentation and its contents confidential and (ii) you will not at any time have any discussion, correspondence or contact concerning the information in this presentation with any of the directors or employees of the Company or its subsidiaries nor with any of its suppliers, customers or partners without the prior written consent of the Company.
1
Today’s Presenters
2 Raúl Francos CFO Gimena Albanesi Investor Relations
Ownership and Corporate Structure
Southern Cone Foundation
(Liechtenstein)
A.C.I. Airports S.à r.l.
(Luxembourg)
Corporación América Airports S.A.
(Luxembourg)(1)
Airport Operating Companies Public Shareholders
…
Argentina
35 Airports 1 Airport 1 Airport
81.3% 81.3% 74.1% Brazil
1 Airport 1 Airport
51.0% 99.9% Italy
2 Airports 46.7%(2)
Uruguay
1 Airport 1 Airport
100.0% 100.0% Ecuador
1 Airport 1 Airport
50.0% 99.9% Peru
5 Airports
50.0% 100.0% Armenia
2 Airports
81.1%
Source: Company information.
- 1. CAAP ownership through intermediate sub-holding companies.
- 2. CAAP has control over TA, with indirect ownership of 46.7% (CAAP holds 75% of Corporación América Italia, which in turn has a 62% ownership of TA)
3
71.0 71.8 76.6 81.3
62.0 62.6 63.1 63.7 64.2 64.8 65.3 65.9 66.4 67.0 67.5 68.1 68.6 69.2 69.7 70.3 70.8 71.4 71.9 72.5 73.0 73.6 74.1 74.7 75.2 75.8 76.3 76.9 77.4 78.0 78.5 79.1 79.6
2015 2016 2017 2018
49% 10% 25% 3% 5% 4% 4% 61% 10% 8% 7% 6% 8%
Argentina Italy Brazil Uruguay Ecuador Armenia
Scalable, Diverse and Adaptable Global Platform
Corporación América Airports At-a-Glance
- Largest private airport operator in the world by
number of airports(1)
- Diversified airport portfolio with presence across
7 countries
- ~20 year history with strong track record
- Well positioned to continue global expansion
strategy
- Deep operating and M&A know-how, driving a
successful business model
Overview
Revenue Evolution (ex-IAS 29)(2)(3) Passenger Growth
(mm) (US$mm) Breakdown by Country (2018)
Breakdown by Country (2018)
Note:
- 1. Largest private airport operator in terms of number of airports (52) and the 10th largest in terms of passenger
traffic (81.3mm) as of December 31, 2018. Based on companies’ information, companies’ filings and websites as of December 31, 2018. Private airport operator stands for those companies which have private investors as shareholders.
- 2. ECOGAL (Ecuador) and Aeropuertos Andinosdel Peru (“AAP”, Peru) are shown as investments in associates
for purposes of the Company’s financial results.
- 3. Excluding hyperinflation accounting in Argentina (“IAS29”). See earnings report for further information.
4
543 674 767 765 460 522 556 540 178 165 250 229 6 6 3 5 1,187 1,366 1,575 1,538
2015 2016 2017 2018
33 airports in Argentina
1998 2002 2008 2003 2008 2011 2012
Concessions in Perú, Brazil and Ecuador Extends Carrasco Airport’s concession
2017 2014 2001
Zvartnots Airport Punta del Este Airport Carrasco Airport - largest in Uruguay Brasilia Airport Bahia Blanca Airport
~20 Year Track Record Operations in 7 Countries
Neuquén Airport (expands its presence in Argentina)
2014-15
Acquires an interest in Florence and Pisa Airports, and a controlling interest in Brasilia and Natal airports Airports awarded through public tender or gov. negotiations Airports acquired from third parties
2007 2004
Guayaquil Airport
Track Record of Acquiring and Developing Airports
1
Incorporates Shirak Airport to the Zvartnots concession Extends Guayaquil’s Airport concession Source: Company information.
Over the Last ~20 Years we have consistently Increased the number of airports under management
Successful airport concession extensions Incorporates El Palomar airport to the AA2000 Concession Agreement, bringing CAAP’s number of total airports under
- peration to 52.
6 2018
Extends Guayaquil’s Airport concession Extends Punta del Este Airport’s concession
2019
World’s Largest Private Airport Operator in Terms of Number of Airports
URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY URUGUAY ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA ARMENIA PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU PERU ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ECUADOR ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY ITALY BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL BRAZIL ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA ARGENTINA
Airports(2) Passengers(2) Revenue
- Adj. EBITDA
- Key hub in the country’s largest city,
and a touristic airport in one of the world’s most coveted destinations ECUADOR 2 4.4mm $89.2mm $24.7mm Airports(2) Passengers(2)
- Domestic airport network of airports
in the south of Peru PERU 5 3.4mm Market Leader (% of Passenger Traffic)
1
Well-Positioned Diversified Airport Portfolio …
Airports(1) Passengers Revenue (3)
- Adj. EBITDA
- Key international airports, a
domestic network as well as touristic airports ARGENTINA 37 39.8mm $934.9mm $310.5mm >90% Airports Passengers Revenue
- Adj. EBITDA
- The country’s main international
airport and a key touristic airport URUGUAY 2 2.3mm $116.3mm $57.8mm >90% Airports(1)(2) Passengers(2) Revenue (3)
- Adj. EBITDA
- Diversified airport portfolio comprises
various asset types: hubs, long-haul, regional, tourist and domestic network Corporación América Airports 52 81.3mm $1,538mm $481.6mm Airports Passengers Revenue
- Adj. EBITDA
- Local hub with exposure to domestic
traffic, combined with tourist traffic BRAZIL 2 20.3mm $123.2mm $14.8mm Airports Passengers Revenue
- Adj. EBITDA
- Main international airport with
exposure to Asia-Europe passenger traffic, as well as an LCC focused airport ARMENIA 2 2.9mm $118.4mm $48.8mm >90% Airports Passengers Revenue
- Adj. EBITDA
- Touristic airports with exposure to
strong passenger traffic growth and low cost carriers ITALY 2 8.2mm $155.5mm $38.8mm Note: Financial and operating figures for the fiscal year ended December 31, 2018 1. Including Termas de Rio Hondo Airport, which is operated by AA2000 but not yet included in the concession. 2. The Company reports Aeropuertos Ecológicos de Galapagos (ECOGAL) and Aeropuertos Andinos del Peru (AAP) as investments in associates. Nevertheless, their
- perational information is included above (number of airports and passengers).
3. Excluding IAS 29
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310 366 429 426 323 321 340 302 151 154 231 207 783.9 840.9 998.6 934.9 2015 2016 2017 2018 Int'l 99% Dom 22% Int'l 78% Dom 59% Int'l 3% Tran 38% Dom 63% Int'l 34% Tran 3%
Revenue Evolution (ex-IAS29)
- Exposure to Brazil, one of Latin America’s largest domestic airline
markets
- Presence in Brasilia, Brazil’s capital, a city with the highest GDP
per capita in Brazil and +3.0mm inhabitants (3rd largest)
- Air traffic expected to benefit from a growing economy and an
improving political environment
Revenue Evolution
1
…With Key Strategic Assets in Attractive Geographies
Argentina Brazil
(US$mm) (US$mm)
(1) Calculated adding revenues for Brasilia and Natal during the period.
- Captures ~90% of Argentina’s commercial passenger traffic
- Operates the two largest airports, Ezeiza and Aeroparque, and 35
- thers nationwide
- Majority of revenues dollar-linked (~85%)
- Uniquely positioned to seize Argentina’s economic recovery and low
cost carrier segment development
- Leading airports in one of Italy’s most touristic regions
- Pisa: proven LCC & long-haul business model
- Florence: important tourist, art and fashion destination with growing
passenger traffic
Italy Uruguay
(US$mm)
Revenue Evolution
- Solid and mature airport operation
- Carrasco: mature O&D business model with one of the highest
commercial revenues per passenger in the region
PAX Breakdown
(2018)
(US$mm)
Revenue Evolution
(1)
PAX Breakdown
(2018)
PAX Breakdown
(2018)
PAX Breakdown
(2018)
39.8 mm 20.3 mm 2.3 mm 8.2 mm
8
54 61 66 60 59 66 63 63 113.0 127.0 128.8 123.2 2015 2016 2017 2018 97 99 107 99 29 29 32 37 21 8 14 16 6 5 2 4 152.7 141.3 154.5 155.5 2015 2016 2017 2018 44 48 56 63 47 47 51 53 3 3 3 3 93.1 97.8 110.0 116.3 2015 2016 2017 2018
2
Track Record of State-of-the-Art Investment Programs
Argentina 9
Ezeiza Airport
2
Track Record of State-of-the-Art Investment Programs
Argentina 10
Aeroparque Airport
2
Track Record of State-of-the-Art Investment Programs
11 Uruguay
Montevideo Airport
2
Track Record of State-of-the-Art Investment Programs
12 Brazil
Brasilia Airport
2
Track Record of State-of-the-Art Investment Programs
13 Brazil
Brasilia Airport
Source: World Bank, Statista, The Economist Intelligence Unit and The Brookings Institution. 1. 2018 GDP per capita at purchasing power parity.
3
Favorable Real GDP Growth … … And Middle Class Development Expectations …
Average Annual Real Growth (’19E-’24E)
… Leading to Strong Convergence Potential
Exposure to Favorable Macroeconomic Trends …
18% 91% 37% 84% 51% 81% 55% 79% 35% 58% 29% 49% 92% 92% '05 '25 '05 '25 '05 '25 '05 '25 '05 '25 '05 '25 '05 '25 Change (%) Middle Class as a % of the Total Population 74% 46% 30% 24% 23% 20% (1%) CAAP – Countries of Operation
(1)
CAAP Presence Other Countries
14
1.8% 1.4% 4.8% 3.7% 2.1% 2.0% 1.6% 0.9% 0.5%
- Avg. 1.6%
- Avg. 2.2%
USA UK Armenia Peru Brazil Uruguay Ecuador Argentina Italia
ARG ARM BRA ECU ITA PER URU AUS CAN DEN FIN FRA GER NETH SPA SWZD UK US
- 10
20 30 40 50 60 70
- 1.0
2.0 3.0 4.0
Emerging Markets Developed Countries
GDP per Capita (US$ ‘000)
High Growth Potential from Macro and Industry Growth
13 8 25 17 9 13 12 16 8 10 5 5 35 20 18 25 22 9 13 17 51
CAAP ARGENTINA ITALY BRAZIL ECUADOR URUGUAY ARMENIA PERU
3
…and growth opportunities from extensions, expansions and acquisitions
Overview of Existing Concessions Terms
(Remaining Life in Years, as of December 31th, 2019) W.A. Remaining Life(1) + Potential Extension Weighted Average Remaining Life(1) Countries with Successful Concession Extensions
Expansion programs in main concessions
Terminal area expansion: new passenger buildings, apron expansions, new ground access and parking New commercial areas: duty free shops, retail stores, entertainment, restaurants, and others Commercial area expansion outside the terminal, including a shopping mall, convention center, day care center, entertainment, food court, restaurants, among others. New 48,500 sqm terminal and a 2,400 mts long runway New terminal to include 7,300 sqm of commercial space and improved retail layout
Growing inorganically through selective acquisitions while keeping a disciplined approach:
- Regions where we are currently present
- Invest in new infrastructure to serve unattended
demand
- Concessions with potential to develop new routes
- Explore other sources of revenues (advertising,
car parking, VIP lounges, real estate)
- Leveraging our expertise and solid balance
sheet
- Potential to increase connecting traffic / hub
strategy
- Opportunities to expand commercial space
Source: Company information. 1. Weighted by 2018 passenger traffic and CAAP's ownership stake in all the concessions within the country. 2. Subject to certain terms and conditions, including the government’s approval. 3. Guayaquil’s concession was extended for 5 years in July 2018. 4. Puerta del Sur’s concession was extended for 10 years in September 2014. Punta del Este’s concession was extended for 14 years in April 2019. 5. Concession allows for indefinite 5-year period extensions.
Expansion at Ezeiza airport Expansion at Brasilia airport New runway and terminal at Florence airport 15
CAAP Argentina(2) Italy Uruguay(4) Brazil Ecuador(3)
Armenia(5) Peru
276.6 427.2 461.6 481.6 394.8 337.1
27.3% 35.4% 34.7% 36.6% 39.2% 36.0%
0% 5% 10 % 15 % 20 % 25 % 30 % 35 % 40 % 45 % 10 0 20 0 30 0 40 0 50 0 60 02015 2016 2017 2018 9M18 9M19
EBITDA EBITDA margin exIFRIC
61% 8% 3% 11% 5% 9% -2%
Historical Revenues (ex- IAS29)
4 Solid Financial Position with Strong and Predictable Cash Generation
Revenue by Country ex-IFRIC12 and IAS29(1)
(US$mm) (2018)
16
56% 11% 9% 9% 7% 8%
543 674 767 765 587 563 460 522 555 540 413 368 178 165 250 229 173 275 6 6 3 5 4 2
1,187 1,366 1,575 1,538 1,176 1,208 2015 2016 2017 2018 9M18 9M19
Aeronautical Rev. Commercial Rev. Construction Rev. Other Rev. EBITDA by Country ex-IAS29
(2018)
1. Excludes IFRIC 12 revenues during the period for a total of US$250.1mm distributed as follows: US$207mm in Argentina, US$15.8mm in Italy, US$0.6mm in Uruguay and US$5.6mm in Armenia.
EBITDA (ex-IAS29)
(US$mm)
46% 54% Bank and financial borrowings
Notes
63% 23% 14%
US dollars Reales Euro
4
Debt Maturity Profile Leverage Ratios
Progressive maturity profile offering liquidity and cash flow stability
Relatively Low Leverage Levels
Financial Debt Overview
Debt Breakdown
(Sept 30, 2019)
1. As of September 30 2019, the Company had a cash balance of US$258M and net debt of $953M. 2. The amounts disclosed in the table are undiscounted cash flows of principal and estimated interest. Variable interest rate cash flows have been estimated using variable interest rates applicable at the end of the reporting period.
18
US$1.2bn(1)
Currency mix
(Sept 30, 2019)
Net Debt / EBITDA Adjusted EBITDA/Interest Expense
(Sept 30, 2019; US$mm)(2)
US$1.2bn(1)
5.3x 5.9x 3.8x 5.3x 5.2x
224 231 491 714 1 year or less 1 -2 years 2 - 5 years Over 5 years
4.8x
2.7x 2.1x 2.0x 2.0x 2.2x 2.1x
dec-17 sep-18 dec-18 mar-19 jun-19 sep-19
5
Highly Experienced Management Team and Seasoned Board of Directors
Board of Directors
NI I
Non-Independent Independent
NI NI NI NI I I I
Máximo Bomchil Chairman Carlo Alberto Montagna Valerie Pechon Martín Eurnekian Daniel Marx David Arendt
Board Level Committees
Executive Committee: Oversees operations and acts on behalf of the board during on-demand activities Audit Committee: Assists the board in fulfilling its oversight responsibility related to the integrity of the financial statements, the systems of internal accounting and financial controls Acquisitions and Business Development Committee: Assists with recommendations on acquisitions and business development
1 2 3
Roderick
- H. McGeoch
Management Team
CEO
- M. Eurnekian
CFO
- R. Francos
Business Development Manager
- E. Perissé
European Business Development Manager
- R. Naldi
Local CEOs Legal Manager
- A. Zenarruza
IT Ecuador
- A. Córdova
Italy
- G. Giani
Peru
- R. Díaz
Uruguay
- D. Arrosa
Argentina
- D. Ketchibachian
Armenia
- M. Wende
Brazil
- J. Arruda
Finance and M&A Manager
- J. Arruda
Accounting, Planning and Tax Manager
- R. Galante
Internal Control & Compliance
19
5
Source: Company information.
Corporación America group has ~50 years of history Started in the textile industry in the 80’s, and has continuously grown and diversified its business portfolio In the 90’s became one of the leading media conglomerates in Argentina Currently Corporación America is mainly focused on its airports, energy, infrastructure and financial industries Proven capabilities to invest in diverse geographies and complex businesses, and flexibility to quickly adapt to new challenges
Committed Controlling Shareholder
Airports Energy Agribusiness Services Infrastructure Technology
20
Supplemental information
Summary Income Statement
21
Year ended December 31, Nine months ended US$ in millions 2015 2016 2017 2018 sep-18 sep-19 % Variation Aeronautical Revenue 543 674 767 716 485 530 9.2% Commercial Revenue 460 522 555 507 340 349 2.4% Other Revenue 6 6 3 5 4 2 (51.1%) Revenue ex-IFRIC 12 1,009 1,201 1,325 1,228 829 880 6.2% Construction Service Revenue 178 165 250 198 118 249 110.6% Revenue 1,187 1,366 1,575 1,426 947 1,129 19.2% Cost of Services (759) (859) (1,030) (971) (630) (809) 28.4% Gross Profit 428 507 545 455 317 320 1.0% Selling, General and Administrative Expense (167) (171) (194) (172) (108) (127) 17.8% Other (Expense) Income, net 13 (5) 18 16 9 10 11.7% Share of Loss in Associates (69) (1) (16) (4) 1 (1) n.m. Financial Expense, net (153) (235) (239) (291) (275) (180) (34.7%) Net Profit (loss) before Income Tax 51 95 114 3 (56) 22 n.m. Income Tax (45) (56) (47) (14) 6 10 81.0% Net Profit (loss) from Continuing Operations 6 39 67 (11) (51) 33 n.m. (Loss) Income from Discontinued Operations 109 (9) n.m. Net Profit (loss) for the Year/Period 115 29 67 (11) (51) 33 n.m. Attributable to Parent 105 34 63 7 (27) 43 n.m. Attributable to Non-Controlling Interests 10 (5) 3 (18) (24) (10) (57.3%)
Summary Balance Sheet
- 1. The transition date to IFRS as issued by the IASB, is January 1, 2015.
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As of Jan 1, As of Dec 31, As of Sept 30,
US$ in millions 2015(1) 2015 2016 2017 2018 2019 Assets: Cash and Cash Equivalents 255 184 213 222 245 258 Trade Receivables 199 101 110 122 117 115 Other Receivables & Tax Assets 291 61 143 188 80 107 Financial Assets 46 40 34 40 81 43 Inventories 22 8 8 9 10 9 Total Current Assets 813 395 507 579 533 532 Trade Receivables 4 1 1 Other Receivables & Tax Assets 174 165 217 309 287 261 Other Receivables 135 117 118 173 133 118 Deferred Tax Assets 39 48 99 135 153 142 Investment Properties 15 Other Financial Assets 11 15 1 3 6 6 Investments in Associates 170 14 11 13 11 13 Right-of-use asset
- 9
Property, Plant and Equipment, net 191 72 66 74 74 74 Intangible Assets, net 1,454 2,611 2,825 2,818 2,934 2,885 Total Non-Current Assets 2,015 2,877 3,120 3,222 3,313 3,248 Non-Current Assets for Sale 5 Total Assets 2,833 3,272 3,627 3,801 3,845 3,780 As of Jan 1, As of Dec 31, As of Sept 30, US$ in millions 2015(1) 2015 2016 2017 2018 2019 Liabilities: Trade Payables 173 121 114 128 115 127 Current Tax Liabilities 28 7 60 22 12 5 Other & Lease Liabilities 197 227 347 209 225 231 Borrowings 281 127 142 373 99 159 Total Current Liabilities 678 482 663 732 451 522 Trade Payables 3 2 2 3 2 1 Other & Lease Liabilities 78 847 1,049 1,007 872 805 Deferred Tax Liabilities 122 146 144 148 271 207 Borrowings 485 960 966 1,114 1,028 1,052 Total Non-Current Liabilities 688 1,955 2,161 2,272 2,172 2,064 Total Liabilities 1,366 2,438 2,824 3,004 2,623 2,586 Shareholders' Equity 1,467 834 803 797 1,223 1,194 Owners of the Parent 1,115 463 449 462 768 772 Non-Controlling Interests 352 371 354 335 454 423 Total Liabilities and Shareholders' Equity 2,833 3,272 3,627 3,801 3,845 3,780
Non-IFRS Reconciliation
“Adjusted EBITDA” is a non-IFRS financial measure. Adjusted EBITDA is presented because it allows for the more effective evaluation of the Company’s operating performance and results of operations from period to period without regard to financing methods or capital structure. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, combined consolidated net income for the year as determined in accordance with IFRS or as an indicator of operating performance from continuing operations. Below is a reconciliation of Income from Continuing Operations to Adjusted EBITDA for the periods shown below.
23
Year ended December 31, Nine months ended US$ in millions 2015 2016 2017 2018 sep-18 sep-19 Income from Continuing Operations $6 $39 $67 ($11) ($51) $33 Financial Income (47) (38) (63) (76) (57) (33) Financial Loss 200 273 302 331 311 193 Inflation adjustment 36 21 20 Income Tax Expense 45 56 47 14 (6) (10) Amortization and Depreciation 72 97 108 151 99 115 Adjusted EBITDA 277 427 462 446 317 317 Adjusted EBITDA Margin (%) 23.3% 31.3% 29.3% 31.3% 33.5% 28.1%