Presentación de PowerPoint - Dominion Global · 2021. 2. 11. · South Africa AMERICA ASIA &...
Transcript of Presentación de PowerPoint - Dominion Global · 2021. 2. 11. · South Africa AMERICA ASIA &...
Company Presentation
D E C E M B E R 2 0 2 0
D I S C L A I M E R
• This document has been prepared by Global Dominion Access, S.A. ("Dominion"), and is for information purposes only. No reliance may or should be placed for any purposes whatsoever on the
information contained in this document or on its completeness, accuracy or fairness. This document and the information contained herein are strictly confidential and are being shown to you solely for
your information. The information may not be copied, distributed, reproduced or passed on, directly or indirectly, in whole or in part, or disclosed by any recipient, to any other person (whether within
or outside such person's organization or firm) or published in whole or in part, for any purpose or under any circumstances.
• This document is an advertisement and not a prospectus for the purposes of applicable measures implementing EU Directive 2003/71/EC (such Directive, together with any applicable implementing
measures in the relevant home Member State under such Directive, the "Prospectus Directive") and as such does not constitute or form part of any offer to sell or issue or invitation to purchase or
subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of Dominion or any of its affiliates or subsidiaries, nor shall it or any part of it nor the fact of its distribution form
the basis of, or be relied on in connection with, any contract or investment decision. Investors should not subscribe for or purchase any securities referred to in this advertisement except on the basis
of the information contained in any prospectus eventually published in accordance with the Prospectus Directive. The information and opinions contained in this document are provided as at the date
of the document and are subject to change.
• This document is not an offer of securities for sale in the United States, Australia, Canada or Japan. The information contained herein does not constitute an offer of securities for sale in the United
States, Australia, Canada or Japan. Securities may not be offered or sold in the United States unless they are registered or are exempt from registration. No money, securities or other consideration is
being solicited and, if sent in response to the information contained herein, will not be accepted. Copies of this document are not being, and should not be, distributed or sent into the United States.
This document does not constitute an offer of securities to the public in the United Kingdom or in any other jurisdiction. The distribution of this document in other jurisdictions may also be restricted
by law and persons into whose possession this document comes should inform themselves about and observe any such restrictions.
• This communication may contain forward-looking information and statements on Dominion, including financial projections and estimates and their underlying assumptions, statements regarding
plans, objectives and expectations with respect to future operations, capital expenditures, synergies, products and services, and statements regarding future performance. Although Dominion
believes that the expectations included in those forward-looking statements are reasonable, investors and shareholders are cautioned that forward-looking statements are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond he control of Dominion, that could cause actual results and developments to differ materially from those expressed in, or
implied or projected by, the forward-looking statements,
• Forward-looking statements are not guarantees of future performance. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date they were
made. Except as required by applicable law, Dominion foes not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
• The information and opinions contained in this document are provided as at the date of the document and are subject to verification, completion and change without notice. Neither Dominion nor any
of its parent or subsidiary undertakings, or the subsidiary undertakings of any such parent undertakings, or any of such person's respective directors, officers, employees, agents, affiliates or advisers,
undertakes any obligation to amend, correct or update this document or to provide the recipient with access to any additional information that may arise in connection with it.
3
We are Dominion: equity story
Activity examples
Impact of Covid-19 and prospects for 2020
Q3 2020 Results
FY 2019 Results
4
We are Dominion_
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
© Dominion 2020
We are a global company that provides Services and end-to-end Projects, with almost 10,000 employeesdistributed in 35 countries.
C O U N T R I E S
>35C L I E N T S
>1,000E M P L O Y E E S
> 9,500
USA
Canada
Mexico
Colombia
Peru
Brazil
Argentina
Ecuador
Haiti
Honduras
El Salvador
Dominican Republic
EUROPE & AFRICA
UK
Germany
Italy
Denmark
Portugal
Poland
Netherlands
Slovakia
Russia
Morocco
Angola
South Africa
AMERICA ASIA & OCEANIA
Australia
Philippines
Indonesia
Vietnam
India
Oman
Qatar
United Arab Emirates
Saudi Arabia
Bahrein
Our global revenue is more than 1,000 €m .
Our objective is to provide comprehensive solutions thatmaximize the efficiency of business processes byimplementing innovative technology and a differentapproach.
We are a publicly listed company since 2016 (BME:DOM).
Our activity fields are Technology & Telecommunications,Industry and Energy.
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More than 20 years diversifying by the hand of disruption _
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
© Dominion 2020
• Digital revolution and new technology developments
B2C(2017-today)
Energy(2016-today)
Technology & Telecommunications(1999-today)
Industry(2014-today)
1 9 9 9 2 0 2 0
In 1999 the investment group INSSEC committed for a technology project and set up Dominion Global
At the same time, the group created CIE Automotive
• Turnkey projects in healthcare, education and alert systems
• In Spain: liberalization of the telco sector
We position ourselves as an integrator and maintainer of networks
We implement technology to respond to a deflationary environment that is continually adjusting costs
• O&M contracts with several telco operators
Disruptive paradigm
Response
Milestones/projects
Our link to global trends and the evolution of our businesses have lead us to develop multi-sector knowledge and to work in
different activity fields
• The industrial crisis highlights the need for restructuring and productive efficiency
We transfer our experience in telco into the industrial sector, in order to define a value proposal based on technology and efficiency
• Industrial infrastructures• One-Stop-Shop O&M• Industry 4.0 projects
• New global energy model
We position ourselves in evolving areas: • Renewable energy• Electricity grids
• Solar parks and wind farms• Transmission lines• Charging stations
• The revolution of personal services and the internet-connected household
We develop our proposal to be the integrator of all personal and household services
• Smart House: technology and household services
6D O M I N I O N Confidential © Dominion 2020
We are Dominion_Business segments and key figures
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
B2B Services B2B 360 Projects B2C
B2B_ B2C_
• O&M outsourcing contracts• Process improvement
resulting from service contracts
• Major projects to create new infrastructures
"Multi-service supplier bringing together a full range of personal and
household services in a single omnichannel
platform"
• Recurrent contracts• CM ≈ 10%
• Project backlog• CM ≈ 15%
• Recurrent revenue• Key factors: number of
clients and their Average Lifetime Value
(1) Distribution for 9M 2020(2) Adjusted turnover = Annual Accounts Turnover without
revenues from sold devices(3) Contribution Margin: EBITDA before corporate structure and
central administration costs
(4) Free Operating Cash Flow: EBITDA –difference between CAPEX and Amortization –NWC variation –Net Financial Income –Tax payment; (acquisitions excluded)
(5) RONA: EBITA / (Total non-current assets –Deferred assets –Goodwill not associated to cash + PPAs amortization current year +Net WC ; excluded acquisitions of the year).
Turnover (1) (2) Contribution Margin (1) (3)
75%Free Cash Flow
Conversion from EBITA (4)
"Tier 1 supplier and digital expert capable of end-to-endexecution of projects: from project design and
management to subsequent O&M"
• Energy and gas supply, telco and data services, insurances and others
25%RONA (Return on Net Assets) (5)
50%B2B_Services
31%B2B_360 Projects
19%B2C
49%B2B_Services
47%B2B_360 Projects
4%B2C
7D O M I N I O N Confidential © Dominion 2020
Dominion: reasons to invest_
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
1. A different value proposition: end-to-end vision of the value chain in the B2B and B2C
2. A management model and an experienced team; focused on value creation
3. A recurrent generation of operating FCF: + €185 m generated since 2015
4. A profitable growth story: Turnover 16% CAGR, Net Income 23% CAGR (2015-2019)
5. Ambitious objectives: to double the Net Income by 2023
6. ESG: committed to our stakeholders
8D O M I N I O N Confidential © Dominion 2020
1. A different value proposition_B2B: Tier 1 supplier and digital expert capable of end-to-end execution of projects: from project design and management to subsequent O&M
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
EPC company Manages construction projects globally
Specialised EngineeringDesigns and executes a specific part of the construction
Service CompanyManages an outsourced non-core process
IT CompanyParticipates in specific phases of the Digital Transformation
DOMINION B2BTier 1 supplier and digital expert with capabilities to execute end-to-end projects
Design, Mgmt and Exection
O & M
B2B VALUE PROPOSITION
Process Set Up Process MGMT
DEDIGN, MGTM ADN
EXECUTION
PROJECT FINANCE
OPERATION AND MAINTENANCE
PROCESS IMPROVEMENT
1. END-TO-END MANAGEMENT
2. MULTI-SECTOR KNOWLEDGE
3. DIGITAL EXPERT
Digital expert
Sector knowledge
9D O M I N I O N Confidential © Dominion 2020
1. A different value proposition_B2C: Multi-service supplier bringing together a full range of personal and household services in a single omnichannel platform
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
RetailerDistributes 3rd parties' products through a one-time client contact. Doesn’t manage clients
OperatorProvides services to the client, normally limited to one type. Manages the client
Multi-Serv. supplierOrganizes several services for the client and provides a digital management platform
DOMINION B2CA multi-service supplier with an omnichannel platform, (physical and digital). Manages the client
Service Operation
Digital distribution
channels
Physical distribution
channel
Multi-serv. integrated
Mgmt B2C VALUE PROPOSITION
C O M P E T I T I V E A D V A N T A G E S
Lower acquisition costs
Higher LTV(Life Time Value)
Outstanding service
1
1. END-TO-END CUSTOMER MANAGEMENT
OPERATOR MULTI-SERVICESUPPLIER
OMNICHANNELPLATFORM
1 0D O M I N I O N Confidential © Dominion 2020
2. A management model and an experienced team_The 4 Ds, the 4 pillars of our management model to focus on value creation
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
Disruption: new ways of doing things to approach new challenges
Technological focus and vitality: knowledge of available technology to apply it to our services and projects
Cross-functional: platforms applicable to different industries and sectors
3 segments: B2B services, B2B 360 projects and B2C
Activity fields: multi-sector and multi-technical approach
Geographies: 5 continents, > 35 countries
Clients: more than 1,000
Entrepreneur-minded management: management independence over their business areas/ divisions
Lean and flexible corporate structure: well measured central services
Operational Leverage
Profitability: ongoing evaluation and control of operations profitability ratios
Cash flow: focus on FCF generation
M&A and Capex: strict return discipline
“It is not what we do, but how we do it”
Digitalization Diversification Decentralization Financial Discipline
1 1D O M I N I O N Confidential © Dominion 2020
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
3. A recurrent generation of operating FCF_+ €185 m generated since 2015
Operating FCF (1) conversion from EBITA 2015-2019 (€m)
(1) Free Operating Cash Flow: before M&A and financial investments
EBITAOperating FCF
25 2837
48 47
3136
43
54
64
2015 2016 2017 2018 2019
75%
Guidance FCF (1)
/EBITA
Total FCF
€185 m
1 2D O M I N I O N Confidential © Dominion 2020
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
4. A profitable growth story_Operating leverage: strong organic growth and operational leverage
Turnover (1) 2015-2019 (€m) Net Income (2) 2015-2019 (€m)
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices(3) Net Income from Continuing Operations (recurrent), excluded discontinued operations
1722
26
33
39
2015 2016 2017 2018 2019
525613
719
831
947
2015 2016 2017 2018 2019
16% CAGR
9% CAGR organic growth 23% CAGR
1 3D O M I N I O N Confidential © Dominion 2020
5. Ambitious objectives: our guidance for the 2019-2022 (+1) (1)_
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
Net Income x2TURNOVERCAGR >5%
EBITACAGR >10%
Financial Discipline
FREE CASH FLOW CONVERSION>75% EBITA
RONA>20%
• Net Income x2 to reach €64m in 2022 (+1)
• Turnover >5% CAGR
• EBITA >10% CAGR
• M&A as an accelerator
• 1/3 of the net income
• Distributed for the first time in 2020
• Free Cash Flow Conversion >75% EBITA
• RONA >20%
• DFN/EBITDA < x2
• Capex ≈ Amortization and steady WC
• Overhead cost ≈3% on Revenue
(1) Includes Covid-19 implacts
1 4
6. ESG: committed to our stakeholders_
W E A R E D O M I N I O N : E Q U I T Y S T O R Y
A P O S I T I V E F O O T P R I N T
W E T A K E C A R E O F P E O P L E
A C O M M I T T E D G O V E R N A N C E
ENVIRONMENTAL
SOCIAL
GOVERNANCE
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We are Dominion: equity story
Activity examples
Impact of Covid-19 and prospects for 2020
Q3 2020 Results
FY 2019 Results
1 6
A C T I V I T Y E X A M P L E S
Turnkey projects and O&M of renewable energy plantsKaixo solar plant (México)
Dominion delivered a turnkey project to build the largest self-supply photovoltaic plant in Mexico (2017), with 65 MW installed capacity and more than 200.000 panels.
Currently Dominion provides O&M services in the plant, which were included in the scope of the project.
Design, construction and O&M of industrial infrastructuresOpole energy plant (PGE Group, Poland)
Dominion designed and managed the construction of two 185m cooling towers in the expansion of the Opole power plant during 2017 and 2018. Dominion also provides O&M services for tall structures.
This project was the largest infrastructure work in Poland in the last 25 years.
Relevant examples of Dominion’s activity_360 projects: from the design to the operation and maintenance
Technology integration and O&M in hospitalsAntofagasta Hospital (Chile)
Dominion managed the implementation and commissioning of the medical equipment and technological infrastructure in the Antofagasta hospital. Additionally, Dominion will be in charge of the O&M and the technology revamping for the next 15 years.
The concession structure used in this hospital has been a successful case study and will be followed in the current investment plant of the country.
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A C T I V I T Y E X A M P L E S
Deployment and O&M of electricity lines Distribution lines for Enel (Peru, Colombia and Chile)
Dominion undertakes the deployment, commissioning and maintenance of electricity distribution lines (low and medium voltage) for ENEL in Peru, Colombia and Chile since 2019.
The global capabilities of Dominion, which ensure the same quality and service level in every part of the world, are one of the key factors that the client values most.
Industrial O&M service under One Stop Shop schemeLeading chemical producer (Spain)
Dominion manages and centralizes a wide range of O&M services, including, among others, logistics management, electromechanics maintenance and the implementation of digital transformation improvements.
Dominion provides these services in the Spanish plants of a leading chemical company.
Digital transformation to achieve energy efficiencyGonvarri (International production plants)
Dominion implemented and manages since 2016 an energy consumption control and monitoring solution for a leading automobile components manufacturer. Thanks to it, the client has maximized the energy efficiency of 17 production plants in 9 different countries.
Dominion designs , implements and operates digital transformation solutions in this and other activity areas.
Relevant examples of Dominion’s activity _Services: O&M with technology as value added
1 8
We are Dominion: equity story
Activity examples
Impact of Covid-19 and prospects for 2020
Q3 2020 Results
FY 2019 Results
1 9
Adjusted Turnover and Net Income performance in 2020_
I M P A C T O F C O V I D - 1 9 A N D P R O S P E C T S F O R 2 0 2 0
• First impacts of Covid-19 occurred during the last weeks of the first quarter 2020.
• The second quarter was globally impacted, especially during the severe lockdown periods in Europe.
• The financial results of the third quarter show a recovery both in terms of sales and net income, almost returning to Q1 levels.
• This recovery is expected to continue during the fourth quarter.
224.5
178.2
211.0
3.9
-3.0
3.2
T1 20 T2 20 T3 20
Adjusted Turnover (1) and Net Income quarterly performance (€m)
Adjusted Turnover
Net Income
*The 9M 2020 consolidated perimeter differs from 9M 2019 because: i) It includes 1 month of Bygging India and 2 months of Alterna that were not integrated in 9M 2019 ii) It does not include 9 months of non-strategic IT activities divested
during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
2 0D O M I N I O N Confidential © Dominion 2020
Prospects for 2020_
I M P A C T O F C O V I D - 1 9 A N D P R O S P E C T S F O R 2 0 2 0
Rapid reaction in B2C and B2B ServicesVery limited impact on B2B 360 Projects
Measures to contain Capex and overhead CostsMaximising possibilities of liquidity
We have a team experienced in coping with crisis scenarios
Faced with the effects of Covid-19, we have reacted fast and firmly.
2 1D O M I N I O N Confidential © Dominion 2020
Prospects for 2020_
I M P A C T O F C O V I D - 1 9 A N D P R O S P E C T S F O R 2 0 2 0
Our distinctive model is our best guarantee to emerge stronger from this extraordinary situation.
FINANCIAL DISCIPLINE
High levels of generation of operating cash flow and low payment commitments in 2020.
Maximising possibilities of liquidity.
DIVERSIFICATION
Our earnings do not depend on the decisions of any single country, client or sector.
DECENTRALISATION
Lean structure andflexibility to adapt our cost structure.
Local management to adapt to our different realities.
DIGITALISATION
Accustomed to using online platforms that avoid the impacts of restrictions on mobility.
2 2
I M P A C T O F C O V I D - 1 9 A N D P R O S P E C T S F O R 2 0 2 0
Prospects for 2020_
In the light of the results obtained in the first 9 months….
…. we reaffirm that we will continue to create value in 2020, with positive results and generation of operating cash flow*.2020
* Operating cash flow: operating profit – maintenance Capex - financial results - taxes
2021 … and in 2021 we will recover pre-Covid levels of activity and profitability, together with the road to growth defined in our Strategic Plan.
2 3
We are Dominion: equity story
Activity examples
Impact of Covid-19 and prospects for 2020
Q3 2020 Results
FY 2019 Results
2 4
2020 9M results_
2 0 2 0 Q 3 R E S U L T S
9M 2019 % 9M 2020
Turnover 807.3 712.8
Adjusted Turnover (1) 654.6 -6% 613.8
EBITDA (2) 71.7 -33% 48.2
% EBITDA on Turnover 11.0% 7.9%
EBITA (2) 40.5 -59% 16.8
% EBITA on Turnover 6.2% 2.7%
EBIT (2) 36.8 13.4
% EBIT on Turnover 5.6% 2.2%
Net Income 24,7 -84% 4,1
% Net Income on Turnover 3.8% 0.7%
(€m)
*The 9M 2020 consolidated perimeter differs from 9M 2019 because: i) It includes 1 month of Bygging India and 2 months of Alterna that were not integrated in 9M 2019 ii) It does not include 9 months of non-strategic IT activities divested during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices(2) EBITDA: Net Operating Income + Depreciation; EBITA: Net Operating Income + PPA’s amortization; EBIT: Net
Operating Income
2 5
2020 9M results_
2 0 2 0 Q 3 R E S U L T S
Covid-19 effect
The results of the first nine months of 2020 have been affected by the exceptional situation arising from the impact of Covid-19 on economic activity.
The financial results of the third quarter continue to be affected, although to a lesser extent than during the previous quarter.
Sales
Major recovery of the level of activity and sales during the third quarter, despite the
situation in Latin America and India, limiting organic decline to -1.7% in constant
currency.
Over the nine months, the organic decline in sales stands at -3% at constant currency
(FOREX effect -2%).
Margins
Progressive recovery of the level of operating margins.
It needs to be taken into account that the results include provisions and other negative one-off
effects.
*The 9M 2020 consolidated perimeter differs from 9M 2019 because: i) It includes 1 month of Bygging India and 2 months of Alterna that were not integrated in 9M 2019 ii) It does not include 9 months of non-strategic IT activities divested during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020.
Net Income
The recovery trend is confirmed with a positive Net Income of €3m in the third quarter, leveraged by the recurrence of B2B Services and the strength of B2B
360 Projects.
2 6
50%B2B_Services
31%B2B_360 Projects
Adjusted Turnover (1) distribution by segment_
2 0 2 0 Q 3 R E S U L T S
B2C19%119 €m
B2B81%495 €m B2C
9M 2019 9M 2020
79.5 €m
188.3 €m
386.8 €m
118.6 €m
189.5 €m
305.7 €mB2B_Services
B2B_360 Projects
*The 9M 2020 consolidated perimeter differs from 9M 2019 because: i) It includes 1 month of Bygging India and 2 months of Alterna that were not integrated in 9M 2019 ii) It does not include 9 months of non-strategic IT activities divested during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
2 7
49%B2B_Services
47%B2B_360 Projects
Contribution Margin (1) distribution by segment_
2 0 2 0 Q 3 R E S U L T S
B2C4%3 €m
B2B96%64 €m 14.3 €m
31.4 €m
45.7 €m
2.8 €m
31.7 €m
32.6 €m
B2C
9M 2019 9M 2020
B2B_Services
B2B_360 Projects
*The 9M 2020 consolidated perimeter differs from 9M 2019 because: i) It includes 1 month of Bygging India and 2 months of Alterna that were not integrated in 9M 2019 ii) It does not include 9 months of non-strategic IT activities divested during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020
(1) Contribution Margin: EBITDA before corporate structure and central administration costs
2 8
2 0 2 0 Q 3 R E S U L T S
B2B Segment in detail_
B2B_Services
10.7%Contribution Margin/Turnover
B2B_360 Projects
16.7%Contribution Margin/Turnover
Turnover (1) by activity field
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
• Recovery of the organic activity, despite the situation in LATAM.
• An important contract has been awarded in Colombia with Enel.
• The decline in sales in T&T is partly explained by the effect of divestments (-8%) and Forex effect (-3%).
• Double digit margins that prove the flexibility of cost structure.
• Strength of the activity.
• No cancelations of projects in execution nor in the backlog.
• Some projects execution plans have been rescheduled without any penalty.
• Margins not impacted: the high profitability level continues
9M 2019 9M 2020
575 €m
495 €m
46%
44%
10%
45%
42%
13%
-19%
-15%
+17%
Energy
Industry
T&T
2 9
2 0 2 0 Q 3 R E S U L T S
B2B Segment in detail_Renewable energy: a global opportunity over 1 GW
• We have an end-to-end vision of the value chain of renewable energy projects:
The opportunity
The key factors for DOMINION
Development EPC O&MFinancial structure and
Operation
DOMINIONPartner company
(BAS)
“Dominion Green”
✓ Visibility: execution of 1 GW in the next 5 years, and its subsequent Operation and Maintenance.
✓ This does not involve CAPEX or debt for Dominion. We maintain our strategy.
✓ We will obtain profitability from the operation of renewable assets through our minority participation in our partner (IPP).
• We have identified and we are developing a 1 GW pipeline of renewables projects, mainly consisting of photovoltaic plants in different regions of southern Europe.
The entry of a minority partner, at market value, is envisaged in Dominion Green to develop its strategy.
3 0
2 0 2 0 Q 3 R E S U L T S
B2C Segment in detail_
B2C_No. of supplies by type of service
Energy Services
Telecommunications services
• Progressive opening of the physical distribution channel as of June.
• Larger base of energy and telco service supplies than the prior quarter.
• Slowdown in the pace of growth of net customer adds compared to our expectations.
• A restructuring processes is in place, which was planned before Covid-19, to adapt to the market situation and to our services Tier 1 approach.
• One-offs with a negative impact: clients’ insolvency and stock provisions.
227.000Supplies
Energy + Telco39,523
120,000
170,507
56,949
30/09 2018 30/09 2019 30/09 2020
3 1
2020 Q3 results_
2 0 2 0 Q 3 R E S U L T S
3T 2019 % 3T 2020
Turnover 281.8 248.8
Adjusted Turnover (1) 229.6 -8% 211.0
EBITDA (2) 26.1 -30% 18.2
% EBITDA on Turnover 11.4% 8.6%
EBITA(2) 16.7 -60% 6.8
% EBITA on Turnover 7.3% 3.2%
EBIT (2) 15.5 -64% 5.6
% EBIT on Turnover 6.7% 2.7%
Net Income 10.2 -69% 3.2
% Net Income on Turnover 4.4% 1.5%
(€m)
*The Q3 2020 consolidated perimeter differs from Q3 2019 because: i) It does not include 3 months of non-strategic IT activities divested during 2019 ; III) It does not include 3 months of the Telco service contract divested during 2020
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices(2) EBITDA: Net Operating Income + Depreciation; EBITA: Net Operating Income + PPA’s amortization; EBIT: Net
Operating Income
3 2
We are Dominion: equity story
Activity examples
Impact of Covid-19 and prospects for 2020
Q3 2020 Results
FY 2019 Results
3 3
F Y 2 0 1 9 R E S U L T S
Key financial figures
Adjusted Turnover (1) EBITbefore PPAs amortization (EBITA) (2)
€39m(+20%)
Net Income (3)
€63m(+18%)
€947m(+14%)
Free Operating Cash Flow(4)
Net Cash Position
25%
RONA
€113m75% o/EBITA
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices(2) EBITA: EBITA: Net Operating Income + PPA’s
(3) Net Income from Continuing Operations (recurrent), excluded discontinued operations(4) Free Operating Cash Flow: EBITDA – difference between CAPEX and Amortization – NWC variation –
Net Financial Income – Tax payment; (acquisitions excluded)
3 4
Other relevant figures
F Y 2 0 1 9 R E S U L T S
WORKFORCE (1) CORPORATE STRUCTURE BACKLOG (2) TOP 1 CLIENT EPS
(1) End of the year data.(2) Includes only contracts from the “Solutions” segment
(3) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
9,630
(35 countries)
€27m
(2,9% on Adjusted
Turnover (3))
€609m <6% on Adjusted
Turnover (3)
0.194 €
3 5
525613
719
831
947
2015 2016 2017 2018 2019
“Turnover growth over 14%”
F Y 2 0 1 9 R E S U L T S
TOTAL GROWTH 14%
+14%
B2B_SERVICES58%
B2B_360 PROJECTS35%
BY SEGMENT
AMERICA29 % (29%)
EUROPE & AFRICA
59% (60%)
ASIA & OCEANIA12% (11%)
BY GEOGRAPHICAL AREA
(1) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
Adjusted Turnover > 5% organic growth
ORGANIC+8.5%
B2C7%
3 6
“Net Income growth over 20%”
F Y 2 0 1 9 R E S U L T S
(1) EBITA: EBITA: Net Operating Income + PPA’s (2) Adjusted turnover = Annual Accounts Turnover without revenues from sold devices
(3) Pro-Forma earnings to comply with IFRS 15 (according to CCAACC 2017)(4) Net Income from Continuing Operations (recurrent), excluded discontinued operations
1722
26 (4)
33 (4)
39 (4)
3,2%
3,5%3,6%
3,9%
4,1%
2015 2016 2017 2018 2019
Net Income/Turnover (2)(3)
3136
43 (3)
54
63
5,8% 5,8%
6,0%
6,4%
6,7%
2015 2016 2017 2018 2019
EBITA/Turnover (2)(3)
Continuous improvement of Net Income, thank to operating laverageThe margin improvement continues in 2019.
+18%
+20%
EBITA > +10% organic growth Bº NETO x2 at the end of the Strategic Plan
3 7
-23.2
122
102 (3) 106113
2015 2016 2017 2018 2019
F Y 2 0 1 9 R E S U L T S
>60% >60%64% 66%
>75%
2015 2016 2017 2018 2019
FCF/EBITDA (1)
20% 20%
24% 24%25%
2015 2016 2017 2018 2019
(1) 2015-2018 commitment: >60% del EBITDA(2) From continuing operations
Recurrent high levels of Free Operating Cash Flow generation. We maintain a permanent net cash position. The activity generates cash enough to undertake all payment obligations (earn outs, ….).
Continuous high levels of Return-on-net-assets.
“Recurrent cash flow generation”
FCF (2)
Conversion > 75% EBITA NFD / EBITDA < 2x RONA > 20%
Caja Neta
3 8
Net Cash evolution breakdown(€m)
(1) EBITA: EBITA: Net Operating Income + PPA’s (2) Free Operating Cash Flow: EBITDA – difference between CAPEX and Amortization – NWC variation – Net Financial Income – Tax payment; (acquisitions excluded)
2019
EBITA (1) 63.1
Organic CAPEX - Amortization (3.6)
WC organic variation 0.8
Net Financial Result (7.6)
Taxes (6.5)
Other variations 0.8
Net Operating Cash Flow (2) 47.1
Operating Net Cash Flow Conversion Rate (2)
Acquisitions 2019 (including acquired net debt) (13.7)
Net WC from acquisitions (9.6)
Payments related to past years acquisitions (earn outs) (10.8)
Financial Investments (4.7)
Dividends paid to minority interests (0.6)
Free Cash Flow 7.7
Net Financial Debt 2018 (105.7)
Net Financial Debt 2019 (113.4)
Cash Flow conversion analysis(€m)
75%
Cash flow conversion
F Y 2 0 1 9 R E S U L T S
+7.7 M€
3 9D O M I N I O N Confidential
© Dominion 2020
B2B 360 Projects: global approach and further diversification
Expanding into Asia, within the Industrial activity field
G E O G R A P H I C A L E X P A N S I O N • Acquisition of Bygging India in February 2019. Industrial activity field. Strong add-ons to the backlog.
• Projects in Asia-Oceania.
• Good performance in Australia and Middle East.
• The weight of Energy has doubled in the last 2 years.
• Renewable projects in LATAM • A 67 MW solar plant in Dominican Rep. completed and O&M contract
started.• Started a 65 MW wind farm in México. First project on this
technology.
• Power transmission line in Angola: execution on track.
• Industry 4.0 projects –multiple projects in a wide range of technologies• Maximization of maintenance efficiency by implementing Smart
Data.• Production process improvement based on Machine Learning in the
steel sector.• International real time assets monitoring for an equipment
manufacturer.
Growth in Energy activity field (x2 since 2017)
D I V E R S I F I C A T I O N
Digital partner of industrial companies
D I G I T A L T R A N S F O R M A T I O N
F Y 2 0 1 9 R E S U L T S
4 0
B2B Services: positioning as Tier 1 supplier
F Y 2 0 1 9 R E S U L T S
• One Stop Shop contracts that integrate different types of services• Mechanical and electrical maintenance, boiler and cooling
systems maintenance, logistic services and industrial cleaning for a tyre manufacturer in Spain.
• Contracts under “Managed services” scheme• Multi-service frame contract for a chemical company in Spain.
• First 2 power distribution lines O&M contracts in LATAM (approx. €20m/year):
• 3-year contract in Chile • 3-year contract in Peru
• New opportunities in LATAM and other regions with current clients.
Strengthening our positions as a Tier 1supplier
P O S I T I O N I N G
Effective transition into power distribution lines
D I V E R S I F I C A T I O N
4 1
B2C: from retailer to an integrator of personal and household services
F Y 2 0 1 9 R E S U L T S
Retailer(Pre-2017)
Smart House (Post 2018)
B U S I N E S S M O D E L
• Activity: 3rd parties’ products sale.• Clients ownership: 3rd parties.• Income: from customer acquisition
(one-off).
A C T I O N S I N 2 0 1 9
• Product diversification to increase customer traffic in every distribution channel.
B U S I N E S S M O D E L
• Activity: integrated services provision.• Client ownership: Dominion.• Income: from operations (recurrent).
A C T I O N S I N 2 0 1 9
• Acquisition of an electricity and gas supplier.
• Acquisition of a cash-back company.• Launch of our own telco services.
4 2
B2C: key KPIs of Smart House
F Y 2 0 1 9 R E S U L T S
T E L C O• Fibre• Mobile• TV
E N E R G Y• Electricity• Gas• Self-supply• Energy efficiency
I N S U R A N C E S• Electronic devices• Home• Vehicle• Health
F I N T E C H• Consumer credits• Payments methods.• Cash-Back
O T H E R S• Alarms• Household Services• Remote assistance• …
State of development Total No. of servicesSmart House
• Fibre• Mobile
• Electricity• Gas• Self-supply
• Electronic devices
• Home
• Cash-back
• Alarms• Household
services
Test
Test
TestTest
26,000lines (1)
145,000supplies (2)
259,000Insurance contracts (3)
N/A
N/A
(*) Under development commercial brands(1) Fix lines, mobiles, ADSL.
(2) Electricity and gas supplies(3) Electronic device insurance contracts
(*)
(*)
(*)
Net new service-contracts acquisitions
in 2019
< 10% of total
Contribution Margin
Seguros
Cash back
+100,000
Test
4 3
Headquarters
Ibáñez de Bilbao, 28 8º A y B
48009 BILBAO (SPAIN)
Phone: (+34) 944 793 787
dominion-global.com
© Dominion 2020
We help our clients transform to become more efficient.
We apply technology to make this happen.
We are Dominion.