Quarter Results 1 - Constructora Conconcreto · On March 20, the time to hand over the First...
Transcript of Quarter Results 1 - Constructora Conconcreto · On March 20, the time to hand over the First...
1Quarter Results
2019
May 8, 2019
Conconcreto / Construction Services / Housing / Investments
2019 1Q
Relevant Corporate EventsInvestments
On March 20, the time to hand over the First Functional Unit (FU1) of the Soacha – Sibaté Project was fulfilled according to the schedule. The nine-kilometer transche enters the verification process by Supervision and the Client (ANI) so that, in 60 days, the Certificate of Completion of the Functional Unit will be signed.
Vía40 express
Advance of work
Extension length 1.5 km
Third Rail Extension - Left Side
Third Rail Extension - Right Side
Cycle Router
Platform
Access Sibaté
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Corporate EventsConstruction
On March 30, a 410-room hotel in the city of Bogotá was handed over for operation, which is part of the project that seeks to consolidate the city as the “First Event and Convention District in Latin America.”
This 51,652-m2 hotel has a gym, spa and indoor pool, as well as 7,500 m2 for meetings and events. The work was constructed in 31 months and was handed over for its inauguration on April 9.
Noteworthy in its construction was the standardization of processes and the use of the Orchestra Wheel methodology to increase productivity, which allowed preserving a tax benefit granted by the Government in 2017 and achieving a cost efficiency of 1.9%.
Located in Palmira, Valle, this 30,000-m2 project was constructed in 15 months and handed over at the end of March 2019.
In its execution, the 57% increase in the productivity of the roof structure, the 33% reduction in man-hours in the structure and the 33% reduction in the Accident Frequency Index stand out, compared to projects with similar characteristics.
Delivery of the Hotel Hilton Corferias:
Delivery of the Colgate Distribution Center:
On March 22, the construction of this Social Interest Housing project began in Soledad, Atlántico.
The total area of the project is 3,198 m2 and includes three (3) towers and 140 apartments. It is expected to be delivered in December 2019.
Initiation of the Construction of the Portal del Sol Housing Complex: The Company obtained the adjudication of
Wayabero Lodge, a 7,000-m2 project, which includes 36 rooms and a spa; it was designed to be the most luxurious expedition hotel in Colombia. This hotel will be built under the best sustainability standards in the natural environment of the Sierra de la Macarena on the banks of the Guayabero River, in a period of 12 months.
Adjudication of the Wayabero Lodge Project:
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Corporate EventsHousing
Contree, a Conconcreto brand, offers an innovative product that adapts to the current needs of home buyers.
It has a regional-expansion plan for the coming years that will give life and strength to the Brand.
Factors – such as the personalization of spaces, sustainability, digitalization, among others, make Contree a disruptive Project in the Colombian and global real-estate offer.
The Launch of Contree:
A Replicable, Innovative Business ModelThe product design is from the Conconcreto Engineering and Design Workshop, with a young, creative commitmentBrand conceptualizationVirtual salesroom. There will be no physical space for salesDigitalization of the purchasing process and virtual realityHigh-profile host or seller to accompany the sales processDifferential design Sustainability Solar panels Native and adaptive plant species Collection of rainwater Electric-car chargers
( http://www.contree.co/ )
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Constructora Conconcreto Advances with its Divestment Plan, Generating Resources
for COP 249,000 million to date
COP 249,000 million
Relevant Corporate EventsFinancial
The stake in Concesiones CCFC S. A. S. was sold in order to self-generate the liquidity required to attend to (i) the execution of the Company’s Investment Plan; (ii) financial obligations; and (iii) the Company’s long-term financial solidity.
Divestments made in previous periods
COP 210,000 million
Concesiones CCFC
The sale of Conconcreto’s stake in the company Concesiones CCFC S. A. S. was perfected. The value includes the sale price and the dividends received from Concesiones CCFC S. A. S. during 2019
COP 39,000 million
Restitution of Pactia contributions
Cash Out Devimed
Sale of shares in Soletanche-Bachy Summits and Geofundaciones
Other Disinvestments
Return in toll the Corzo, Facatativá, Cundinamarca.
Total:
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Corporate EventsInnovation
The use of digital automation processes permits users with no knowledge in programming to create their own robots for automation.
We have enabled a virtual training field to train our team of employees in an activity that generates frequent accidents, which allows us to develop jobs without injuries and then arrive at the work field with training in the use of tools and awareness of self-care.
8 robots construidos que realizan tareas como:
Download orders, invoices, data bases and ERP system information.
Creation of users in platforms and applications.
Automatic response of emails.
RDA Robotic Process Automation
Virtual reality for entertainment
Virtual field Real field; project under construction
*Robotic Desktop Automation
Mainbenefits
Reliability
Assistance
Constancy
ConsistencyAdherence
GreaterProductivity
EasyImplementation
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Events:Concessions
Concessions in Construction and Structuring:
Concessions in Operation:
Concessions in Construction and Structuring:
Roads
Vía 40 Express (Bogotá – Girardot): Initiation of Operations: December 1, 2016
On March 20, the time to hand over the First Functional Unit (FU1) of the Soacha – Sibaté Project was fulfilled according to the schedule. The nine-kilometer tranche enters the verification process by Supervision and the Client (ANI) so that, in 60 days, the Certificate of Completion of the Functional Unit will be signed.
Vía Pacífico (Buga - Buenaventura): Initiation of Operations: August 17, 2016
On March 28, the reversal of the concessioned infrastructure and reversible assets was made to the ANI. This process terminated the reversal stage and the Project entered the liquidation stage of the concession contract.
The Oriente Two-Lane Road (Palmas – Tablazo): A private initiative presented to the Office of the Governor of Antioquia
The Project is still in the approval phase by the Ministry of the Treasury, so there have been several rounds of observations and responses to the comments from the Entity. This process is customary in this type of projects.
Once the corresponding approvals have been provided, the Office of the Governor will begin the bidding process thereof.
Roads
Reference photo concession Devimed
DEVIMED: Medellín – Caño Alegre and the Oriente Road Network
June, 1996
InitiationDate:
Ending Date:
Dicember, 2026
% of Conconcreto’s Stake:
25%Average Daily Traffic (ADT)
Toll Station
Cocorná
Puerto Triunfo
Guarne
Palmas
Total
1Q2018 2Q2018 3Q2018
1Q2018 2Q2018 3Q2018
Accumulated Financial Results
OperatingIncome
EBITDA*
1 The Corcorná and Puerto Triunfo Toll Stations were phased out from the concession beginning on September 1, 2018.
5.235 4.860 4.474
4.379 4.039 3.721
20.740 20.395 20.797
9.772 9.916 10.085
40.126 39.210 39.077
39.908 80.330 97.712
21.922 31.074 49.699
4Q2018¹
0
0
21.054
10.134
31.189
1Q2019
0
0
21.346
9.893
31.239
4Q2018
151.579
75.345
1Q2019
32.803
17.239
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Events:Real-Estate Portfolio
The most relevant events
1. The distribution of yields was carried out for COP 27,000MM2. Operations began in the Colgate Distribution Center in Palmira, Valle del Cauca3. Construction began on the tailor-made warehouse for HomeCenter, located in the Logika Madrid
Logistics Park4. The remaining state (50%) was acquired in the assets Buró 26, located in Bogotá; and Buró 51,
located in Barranquilla5. Construction was completed on the Hilton Corferias Hotel, located in Bogotá. In March, it
initiated soft-opening operations. The Hotel’s opening event was held in April
NOI 1Q2019
$35.517 mill
Hotels
4%Offices
20%
Industry
26%Self-Storage
4%
Commerce
44%
International
2%
GLA 1Q2019
774.683 m2 in Operation
Commerce
28%
Industry
48%
Offices
18% Hotels
3%Self-Storage
3%
Equity Adjusted to the Stake (40.3%)
829.917 840.933
40,3%40,4%
2018 1Q2019
* Calculated based on administrative information provided by PACTIA
88% 88%76%
53%69%
85%*
Occupation at the Close of 1Q2019
* The weighted total occupation does not include the Hotel line
Commerce Offices Hotels TOTAL*Industry SelfStorage
ParticipationConconcreto
ParticipationConconcreto
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Corporate Events:
Relevant Events:
Backlog – 1Q 2019
The Company’s Backlog to March 2019 is COP 1,512 billion, corresponding to approximately 1.96 years of operation. Infrastructure projects correspond to 82% of the Backlog, while 18% corresponds to Building, including Housing Projects.
Construction Services
Infraestructura:
For the closing of 1T2019, Infrastructure has a Backlog of COP 1,234,091 million, concentrated mainly in the Vía 40 (COP 889,137 million); Ruta del Sol (COP 129,005 million); Hidroeléctrica Ituango (COP 87,903 million); Balance of La Línea (COP 38,695 million) and the Tunal Transmilenio Patios (COP 37,932 million).
The change of scope corresponds primarily to the elimination of PCH Patico
The execution of the period was concentrated in Vía 40, Ruta del Sol, Hidroeléctrica Ituango and the Balance of La Línea
Backlog at the close of the year Distribution of the Backlog
2013 2014 2015 2016 1Q2019 April-Dec2019
2020 2021 202220182017
$2.000 $1.900
$2.551
$3.133 $2.395
$1.896
$1.512
$582 $230 $178 $174
2023
$174
2024
$174
Infraestructure%82
%18 Construction (including Housing)
CO
P Th
ousa
nds
of M
illio
ns
$1.418.679
$1.234.091
-$92.856
-$91.733
2018 Contracted Changeof scope
Executed 1Q2019
InfrastructureCOP Millions
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Events:Construction Services:
Construction:
For the closing of 1T2019, Construction had a Backlog of COP 278,079 million, concentrated in projects such as Stage 3 of Buró 25 (COP 41,972 million); HomeCenter (COP 36,224 million); the Colgate Distribution Center (CeDi) (COP 15,053 million); EDEM (COP 13,028 million); and Supercade Manitas (COP COP 13,325 million).
The change of scope is primarily explained by the exit of the Chimeneas Shopping Center for COP 106,393 million; the reduction of COP 6,205 million in Caminos de la Primavera; and the increase of COP 3,604 million in Zanetti; and COP 4.670 million in Sunset Boulevard.
In terms of what was executed during 1T2019, the most important works were Stage 3 of Buró 25; the Colgate CeDi; the Corferias Offices; the HomeCenter Project; Zanetti; Sunset Boulevard; Montebianco, Allegro, Manhattan (Panama) and ILO.
Engineering and Design:
For the closing of 1T2019, Engineering and Design had a Backlog of COP 22,184 million, concentrated in projects, such as the Management of Stage 3 of Buró 25 (COP 8,386 million); Management of Buró Milla de Oro (COP 1,622 million), the Management of HomeCenter (COP 1,518 million); the HomeCenter Standard Warehouse (COP 959 million); Contree Housing (COP 913 million) and Equa (COP 907 million)
Works contracted during the period amounted to COP 3,432 million, primarily in the Management of HomeCenter (COP 1,518 million); and projects such as Contree Housing (COP 913 million); the Logika Stage 4 Warehouses (COP 260 million); and Logika Siberia (COP 242 million)
The change of scope is principally explained by the reduction of COP 1,303 million in Indumentaria in the Gran Plaza El Ensueño Shopping Center; COP 1,690 million in the Management of Stage 3 of Buró 25; COP 152 million in the Design of the Logika Vía 40 urban planning and entrance gate; and COP 92 million in the Design of Greenwood Country Club
In terms of what was executed during 1T2019, the most important projects were the Resourcing of the Hilton Corferias I Hotel, the Resourcing of the Hilton Corferias II Hotel; the Designs for Avianca, Liceo Francés and Equa
These businesses and contracts are not incorporated in the Company’s total Backlog
$477.155
$278.079
-$118.254-$80.823
2018 Contracted Changeof scope
Executed 1Q2019
Construction (Including Housing)COP Millions
$29.933 $3.432
$22.184 -$3.026 -$8.155
2018 Contracted Changeof scope
Executed 1Q2019
Engineering and Design COP Millions
*Unification of the Engineering and Design Backlog methodology with that of Construction and Infrastructure
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Figures:
Consolidated Ordinary Income
-2%
Corporate
$2.838 Housing
$12.368Construction
$137.236 Eliminations
$(4.698)
Corporate
$1.985 Housing
$20.445
Eliminations
$(1.540)
1Q2019$192.772 mill
1Q2018$195.888 mill
Investment
$45.027
Construction
$152.214
Investment
$22.785
$137.236 millIncome from Construction
$ 152.214 millIncome from Construction
-10% $2.210 Equipment
$39.669Building
$1.580Engineering & Design
$93.777Infrastructure
$3.558 Engineering & Design
$120.691 Infrastructure
$4.212 Equipment
$23.752 Building
Income from Investments
$45.027 mill98%
Industrial CC
19.995
14.743Other Real-Estate Assets
9.825Concessions
Housing Fund
465
Income from Investments
$22.785 mill
Industrial CC
15.9741.744Other Real-Estate Assets
4.612Concessions
Stakes
1.514
Stakes
49Housing Fund
454
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Relevant Figures:
Consolidated EBITDA
Corporate
$(4.444)Corporate
$(6.445)
Housing
$89Housing
$(621)
1Q2019$53.007 mill
1Q2018$33.372 mill
Construction
$11.947Construction
$21.060
Investment
$45.416Investment
$19.379 59%
Construction EBITDA $11.947 mill
Construction EBITDA$21.060 mill
10.364 Infrastructure
(203)CommercialVice Presidency
(1.539) Ingeniería & Diseño
2.276Equipment
1.049 Building
13.687Infrastructure
(565)Engineering & Design�
2.664Equipment
5.274Building
-43%
Investment EBITDA
$45.416 mill134%Industrial CC
Industrial CC
2.857
10.929Pactia
Pactia32.305Concessions
(589)Stakes
(337)Corporate Finances (2.976)
Stakes
(63)CorporateFinances
Housing Fund
249
Investment EBITDA
$19.379 mill
Housing Fund
227
11.949 7.039Concessions
470
Consolidated Statement of Results:
Unbudgeted income for COP 28,12 MM from the dividends of the CCFC Concession (COP 7,068 MM) and the profit obtained from the sale of the stake in that asset (COP 21,074 MM), which are reflected in the Ordinary Income and the account of Other Income, respectively.
Execution of the Financial Costs at 90% by the reduction of the BRI and the advance payment of capital for COP 56,000 MM between the months of December 2018 and March 2019.
The contribution of the PACTIA PCF through yields for COP 10,911 MM, accounted for in Ordinary Income, a figure that was within the Plan.
Non-recurrent income for COP 28,142 MM from the dividends of the CCFC Concession (COP 76,068 MM) and the profit obtained from the sale of the stake in this asset (COP 21,074MM), which are reflected in the variation of the Ordinary Income and the account of Other Income, respectively.
The 2.7% reduction of Operating Expenses, the result of the optimization program for this item, which has been executed since 2017.
The neutral effect of the Exchange Difference in 1T2019, since the results of 1T2018 were directly influenced by the revaluation of the exchange rate, which impacts the surplus balance in Dollars (USD).
The 86% growth in Financial Income is explained by the increase of the subordinated debt (from COP 50,010 MM to COP 181,438 MM) on which a remuneration rate has been agreed and the yields generated by the cash surpluses associated with the Berlin Project and divestments.
A 5% increase in Financial Expenses despite the fact that the Consolidated Financial Indebtedness was reduced by 17.5%, which is explained by the 89-bp increase of the Financial Cost associated with the re-profiling of the debt.
The Current Taxes for the period are calculated with the 33% rate without a surcharge, plus the 10% windfall earning tax for the fiscal profit generated in the sale of the stake in CCFC. The Differed Tax is related to the reversal of the provision for the yields at fair value of the FCP.
Statements in the Consolidated Financial Situation: In order to attend the re-profiling of the debt carried
out with financial institutions at the end of 2018, as well as to fund the Company’s Investment Plan, a Divestment Plan was started on some non-strategic land, properties and investments, which were transferred from NON-CURRENT ASSETS to available for sale in CURRENT ASSETS.
2019 1Q
2019 Financial Results:
Conconcreto / Construction Services / Housing / Investments
For more details, click here to consult the Notes to the Consolidated Financial Statements
CONSTRUCTORA CONCONCRETO S.A. CONSOLIDATED STATEMENT OF RESULTS
(COP Million)
Real Mar. 2019
Real Mar. 2018 Var COP Var %
Income from Ordinary Activities 192,772 195,888 (3,116) -2%
Sales Costs (157,277) (169,183) 11,906 -7%
Gross Profit 35,495 26,705 8,790 33%Gross Margin 18.4% 13.6%
Other Income 21,978 2,127 19,851 933%
Administration and Sales Expenses (7,801) (7,546) (255) 3%
Employee-Benefit Expenses (10,735) (11,511) 776 -7%
Other Expenses (1,152) (1,905) 753 -40%
Other Profits (Losses) (188) 6,403 (6,591) -103%
Equity Method (Association & Joint Ventures) 5,385 8,085 (2,700) -33%
Operating Profit 42,983 22,358 20,624 92%Operating Margin 22.3% 11.4%
Exchange Difference Profits (Losses) (22) (8,746) 8,724 -100%
Financial Income 10,970 5,910 5,059 86%
Financial Costs (18,905) (17,975) (930) 5%
Before-Tax Profit 35,025 1,547 33,477 2,164%Before-Tax Margin 18.2% 0.8%
Tax Expense (4,543) (0) (4,543)11,190,512
%
Minority Interest (24) 487 (511) -105%
Net Profit 30,457 2,034 28,423 1,397%Net Margin 15.8% 1.0%
EBITDA 53,007 33.372 19,635 59%EBITDA Margin 27.5% 17,0%
STATEMENTS OF THE CONSOLIDATED FINANCIAL SITUATION (COP Millions)
Mar. 2019 Dec. 2018Variation
COP %
Current Assets 1,418,049 1,518,097 (100,048) -6.6%
Long-Term Assets 1,649,733 1,610,891 38,842 2.4%
Total Assets 3,067,782 3,128,988 (61,206) -2.0%
Current Liabilities 657,946 731,032 (73,087) -10.0%
Long-Term Liabilities 903,558 923,920 (20,363) -2.2%
Total Liabilities 1,561,503 1,654,953 (93,449) -5.6%
Total Equity 1,506,278 1,474,036 32,242 2.2%
2019 1Q
Conconcreto / Construction Services / Housing / Investments
Consolidated Financial Obligations
Dec - 2018
CorporateHousing
Construction
Investment
$172.820
$78.597
$535.986
$54.473
COP 841.875 millCOP 773.181 millDec - 2017
Corporate
Corporate
Housing
Housing
Construction
Construction
Investment
Investment
$213.744
$116.894
$561.654
$40.976
-9,8%
4%
-12%
-7%
-14%
COP 933.269 mill
CorporateHousing
Construction
Investment
$147.802
$69.000
$499.618
$56.761
-8,2%
Mar - 2019
Corporate
Housing
Construction
Investment
33%
-33%
-5%
-19%