INVESTOR PRESENTATION MARCH 2016

Transcription

1 INVESTOR PRESENTATION MARCH 2016

2 Applus+ at a glance One of the world's leading testing, inspection & certification companies. Provide solutions for customers in all types of industries to ensure that their assets and products meet quality, health & safety and environmental standards and regulations. 20,000 1,702 million revenue in 2015 Listed on the Stock Exchange since May countries across all continents

3 A GLOBAL LEADER OF TESTING, INSPECTION AND CERTIFICATION Leadership in chosen markets and technology No. 1 in Non Destructive Testing (NDT) for the Oil & Gas industry No. 2 Operator of Statutory Vehicle Inspections Leading independent Auto Proving Ground Construction 4% Power 8% Auto OEM 10% End markets Other 13% Oil & Gas 48% Global platform with local presence Statutory Vehicle Inspection 17% 20, countries Over 48,000 customers Organised through 4 divisions Diversified geographic footprint Asia Pacific 13% Middle East, Africa 12% Spain 16% 2015 results Revenue of 1,702 million, up 5.1% on 2014 Adj. Op. Profit of million, 9.5% margin Latin America 9% North America 22% Rest of Europe 28% Adj. Net Profit 97.9 million, up 11.6% on

4 INVESTMENT CASE A TIC company benefiting from Quality, Safety & Environmental structural growth drivers: Regulations, Risk, Outsourcing, Product Variety, Complexity, Ageing Leading market positions in key markets Good balance of developed (2/3) and emerging market (1/3) exposure High barriers to entry eg: accreditations, reputation, relationships, global network and innovation Resilient earnings profile due to critical nature of work, differentiated offerings, bluechip customer relationships, diversified revenue streams and flexible cost base Longer term margin potential Management experience of TIC industry and managing challenging markets Strong cash flow with low capital intensity that can comfortably manage higher gearing levels Fragmented industry With 48% O&G exposed end markets, Applus+ is demonstrating its resilience in the current environment and recover when energy capex spending resumes 4

5 GROUP HISTORY % 53% 70% 17% Shareholding 25% 22% Financial Institutions and other connected shareholders 30% Financial Institutions and other connected shareholders Free Float 7% 76% Milestones Establishment of Agbar Automotive IDIADA Contract awarded (est 1971) Laboratories Contract awarded (est 1907) Acquisition of Norcontrol (est 1981) Acquisition of RTD (est 1937) Acquisition of 20 businesses Acquisition of Velosi (est 1982) The IPO of New Energy & Industry division formed Revenue 200M 675M 1,581M 1,702M Countries Employees 3,300 9,900 19,000 20,000 5

6 REVENUE HISTORY 1,460 1,584 1,619 1,702 1,180 Revenue ( bn) Spain Rest of Europe US and Canada Latin America Asia Pacific Middle East and Africa Revenue for 2011, 2012 and 2013 are proforma for acquisitions within the relevant acquisition year 6

7 DIVISIONS Energy & Industry Laboratories Automotive IDIADA 2015 Revenue (% Group) and 1,187m (70%) revenue 14,200 55m (3%) revenue m (17%) revenue 3, m (10%) revenue 2, Adj Operating Profit (% Group) 103m (55%) 5m (2%) 61m (32%) 21m (11%) Margin 8.7% 8.3% 20.4% 12.9% Main Activities Industrial and environmental inspection, technical assistance, non-destructive testing and technical staffing Product testing and system certification services from multidisciplinary laboratories Statutory vehicle inspection services for safety and emissions Vehicle proving ground, engineering, design, testing and homologation services 7

8 STRUCTURAL GROWTH DRIVERS Energy & Industry Automotive (Statutory Vehicle Inspections) IDIADA (Automotive Engineering & Testing) Energy and other infrastructure investment Resilience to economic downturn Regulations of vehicle safety and emissions Growth Drivers and Key Risks Maintenance of ageing Oil & Gas assets Growth in Latin America infrastructure Increase in regulations Economic growth in Spain Key risks: decline in capex and opex spend in Oil & Gas Developing countries adopting statutory inspection programmes Incease in car volume Key risks: changes in regulation and contract renewals Increased number of vehicle models / shorter product life cycle Increased outsourcing in developed markets OEMs in Emerging Markets need to import technical know-how Key risks: reduced R&D spend and model variants in Auto OEM and contract renewal See Annual Financial Statements for all risks and further detail 8

9 Applus+ ENERGY & INDUSTRY Overview Integration of 3 previously separate divisions: Norcontrol Founded Spain in Joined 2004 RTD Founded in Holland in Joined 2007 Velosi Founded in Malaysia in Joined 2011 Assesses the quality, safety, environmental and other efficiency of the design, construction and operation of industrial facilities and civil infrastructure Services include Non Destructive Testing, Technical Staffing, Vendor Surveillance, Construction & Site Supervision, Environmental, Health & Safety Active in 60 countries with 14,000 Asia Pacific 14% Africa & Middle East 17% Revenue by Geography Latin America 10% North America 25% Revenue by End Market Telecom 2% Aerospace 2% Mining 3% Construction 5% Power 11% Other 9% Europe 34% Oil & Gas 68% 9

10 Applus+ LABORATORIES Overview Product testing and certification services Revenue by Geography Multi-technology state-of-the-art laboratories serving the Aerospace, Auto, Construction, Energy, IT industries Presence in Europe, Latin America, North America, Asia and Saudi Arabia with 700 LatAm 5% USA 8% Asia 10% ROW 2% Spain 50% Rest of Europe 25% 10

11 Applus+ AUTOMOTIVE Overview Established in Spain in nd largest statutory vehicle inspection operator globally 1 with leading market positions in Europe and Americas: 11 million inspections pa Vehicle safety and emissions inspection Active in both regulated and deregulated markets Presence in Europe and Americas with 3,300 North America 13% Revenue by Geography Rest of Europe 45% Latin America 12% Spain 31% Revenue by Regulatory Regime Liberalised 23% Concession/ authorisation based (regulated) 77% 1. Based on number of inspections carried out 11

12 Applus+ IDIADA Overview Revenue by Geography Founded in HQ in Tarragona, Spain Owned 80% by Applus+ and 20% local government and since 1999 Applus+ operates the assets owned by the local government under a long term contract 1 Asia Pacific 25% Rest of World 3% Spain 21% Engineering, testing, homologation and R&D services provider to the leading vehicle manufacturers (OEMs) Specialised facilities, people and proving ground with knowledge of global technical requirements Global network in 23 countries across Europe, Asia and Latin America with 2,000 Rest of Europe 50% Proving Ground 20% Revenue by Service Homologation 15% Body & Passive Safety 34% Chassis & Powertrain 31% 1. Contract runs until 2019 and the Government has committed a first extension to

13 Applus+ EXECUTIVE TEAM Fernando Basabe CEO 2011 /19 LEGEND Name Position Joined Applus+ / Years of industry experience Joan Amigó CFO 2007 /9 Jorge Lluch SENIOR VP CORPORATE DEVELOPMENT 2007 /9 José Delfín SENIOR VP HUMAN RESOURCES 2006 /10 Eva Argilés GENERAL COUNSEL 2013 /3 M. Teresa Sanfeliu HSQE VP 1996 /28 Anna Díaz CHIEF COMPLIANCE 2009 /7 Energy & Industry division Laboratories division IDIADA division Automotive division North America Latin America Northern Europe Southern Europe, Africa, Middle East, Asia & Pacific Phillip Morrison EXECUTIVE VP 2015/ 34 Pablo San Juan EXECUTIVE VP 1988 / 27 Sytze Voulon EXECUTIVE VP 2014/ 25 Ramón F. Armas EXECUTIVE VP 1988 / 27 Jordi Brufau EXECUTIVE VP 2007 / 9 Carles Grasas EXECUTIVE VP 1987 / 29 Aitor Retes EXECUTIVE VP 2009 / 7

14 CALENDAR AND FURTHER INFORMATION CALENDAR AND CONTACT Year end 31 December Q May 2016 Q July 2016 Q Nov 2016 Q Feb 2017 Ticker: APPS-MC Aston Swift, Vice President Investor Relations Barcelona aston.swift@applus.com investors@applus.com 14

15 DISCLAIMER This document may contain statements that constitute forward looking statements about Applus Services, SA ( Applus+ or the Company ). These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed in these forward looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Applus+ with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator. Applus+ does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realised. This document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Applus+. Nothing in this presentation should be construed as a profit forecast. 15