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FINANCIAL RESULTS Q2 2015INVESTOR CALL | 7 August 2015
WIM SARENSCEO
MAGNUS BJORKMANCFO
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AGENDA
Q2 2015 results
Capital structure
Outlook
Appendix
Disclaimer
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DISCLAIMER
The information set out in this presentation (the “Presentation”) has been produced by Sarens Bestuur NV (the “Company”) and is being madeavailable to recipients for information purposes only. It does not constitute, nor is it intended to be an offer to sell, or an invitation to subscribefor, or purchase, any securities in the Company or any subsidiary. The financial information set out in this Presentation has not been subject toan independent audit. Other information has not been verified and may be subject to updating, completion, revision and amendment. ThePresentation does not purport to summarize all the conditions, risks and other attributes of an investment in the Company. It should be notedthat the past performance is not indicative of future performance. The future performance of the Company and its subsidiaries will depend onnumerous factors which are subject to uncertainty.
The Presentation and its contents are strictly confidential and may not be reproduced or redistributed, in whole or in part, to any other person.By receiving this Presentation you acknowledge that you will be solely responsible for your own assessment of the market and the marketposition of the Company and that you will conduct your own analysis and be solely responsible for forming your own view of the potential futureperformance of the Company’s business. No representation or warranty (express or implied) is made as to, and no reliance should be placedon, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to anyerrors, omissions or misstatements contained herein, and, accordingly, Sarens nor any of its directors, officers or employees accepts anyresponsibility for the information, statements, matters, facts or opinions stated herein, or any liability whatsoever arising directly or indirectlyfrom the use of or any act or omission undertaken in reliance on the Presentation.
Certain information contained herein may include forward-looking statements relating to the business, financial performance and results of theCompany. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimesidentified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”,“may”, “will”, “should” and similar expressions. The forward-looking statements contained in the Presentation, including assumptions, opinionsand views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and otherfactors that may cause actual events to differ materially from any anticipated development. The Company nor any of its subsidiaries or anydirectors, officers or employees thereof provide any assurance that the assumptions underlying such forward-looking statements are free fromerrors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in the Presentation or the actualoccurrence of the forecasted developments. Neither the Company nor its directors or officers assumes any obligation to update any forward-looking statements or to conform these forward-looking statements to the Company’s actual results.
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HIGHLIGHTS
Q2 2015 GROUP PERFORMANCE
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Financial highlights – Continued weak turnover in Q2 due to canceled and postponed projects in North America and
Oceania.– Price pressure in several geographies.– EBITDA result below last year despite positive FX impact and bringing equipment onto the
balance sheet.– Net result is positive but lower than last year.
Market Highlights– Positive trends: Recovery of general market conditions for crane rental services in Asia’s, and W-
Europe’s , with India and UK driving most of our recovery.– Negative trends: Delay of (new) infrastructure project decisions in oil & gas due to price volatility,
with Australia, NW-Canada, and Brazil experiencing most impact.
Key projects– Secured several new projects in Canada– The 3rd power plant project in Poland for this year has been signed.– JV with Sinotrans has started in China.
Outlook– Good order backlog in Eastern Europe and stronger sales pipeline in North America
SAFETY CONTINUE TO BE IN FOCUS
GROUP OPERATIONS
Slight increase in severity rate, QEHS department has performed root cause analysis and implemented preventive actions
Lost time and total recordable cases continued to decrease
Additional people in the growth regions of Asia and Latin America.
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1H 2015 2014
Severity rate 31,3 29,3
Lost time Incident Rate 1,0 1,2
Total Recordable Case Incident Rate
2,1 2,2
FTE's 4.357 4.373
-4,5%
-16,7%
6,8%
-0,4%
CHANGE
TURNOVER UNDER PRESSURE AS SEVERAL INVESTMENT PROJECTS ARE POSTPONED
GROUP PROFIT & LOSS
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€ M Q2 2015 YTD Q2 2014 YTD
Turnover 291,0 310,5
EBITDA 71,6 81,0
EBITDA% 24,6% 26,1% -1,5 pps
Net result 3,9 9,6
Debt charges -16,5 -15,6
CHANGE
-6,3%
-11,6%
-59,8%
5,3%
Drop in turnover in Sarens Projects, Europe, Africa & North America only partially compensated by stronger growth in Asia and Latin America
Price pressure and lower than expected sales lead to lower margins, particularly in North America and Oceania.
A weak Euro continuous to have a positive impact on net results compared to previous year (+7,3m).
Using the funds from the bond, assets under operating leases have been brought on balance with a positive impact on EBITDA (+9,1m)
GEOGRAPHICAL DIVERSIFICATION CONTINUES
GROUP PERFORMANCE
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130 120
50 65
44 53
6262
66 45
Q2 2014 YTD Q2 2015 YTD
Revenue by Geography (€m)
‐6,3% % change
-32,6%
‐0,5%
21,9%
28,2%
‐7,6% 37% 35%
14% 19%
12%16%
18%18%
19%13%
Q2 2014 YTD Q2 2015 YTD
Revenue by Geography (% in total Revenue)
Sarens Projects
Middle-East &AfricaAsia-Pacific
Americas
Europe
FOREIGN EXCHANGE NEGATIVELY IMPACTS NOMINAL COSTS
OPERATING EXPENSES
Subcontracting costs is coming down as less cranes are cross hired
Increase in personnel costs related to higher activity levels
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BOND PROCEEDS IMPACTS NUMBERS
GROUP BALANCE SHEET & CASH FLOW
Net Working Capital has remained stable compared to Q1 2015
Negative Free cash Flow as equipment has been taken on balance sheet using the bond proceeds
Net investments are largely influenced by the one time effect of bringing off balance financed equipment onto the balance sheet (EUR 86.3m)
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€ M Q2 2015 YTD Q2 2015 YTD
Balance sheet Total 1.250 1.160
Tangible Fixed Asset
938,7 813,4
Net investments (*) 133,4 40,3
Net Working Capital (**)
105,8 67,8
Consolidated Free Cash Flow
-116,2 19,7
(*) Tangible Fixed Assets Investments - Disposals
(**) Inventory + Trade Rec. - Trade Pay.
-690%
CHANGE
7,8%
15,4%
231%
56%
FURTHER REDUCTION IN CAPEX
CAPITAL EXPENDITURE OVERVIEW
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€ M 1H 2015 1H 2014
Lattice Boom Crane 12% 29% -16,3 pps
Tele Crane 46% 34% 11,7 ppsSPMT 32% 19% 12,1 ppsOther (*) 10% 17% -7,4 ppsNet Capital Expenditure (**) 43,4 41,2
Number of cranes 1.562 1.569Number of SPMT axles 2.048 1.772
(*) Trailers, Special Lifting Solutions,…
(**) Excluding On Balance transaction
16%
0%
5,2%
CHANGE Investments in SPMT axle lines for projects in Norway, China, and Kazakhstan
Net Capex is excluding the assets brought on balance with proceeds of the bond
The focus of equipment investments is still on larger capacity cranes
Given the weak results of the first HY, investments will be substantially reduced and postponed in the second half of the year
GROSS LEVERAGE RATIOS IMPACTED BY BOND TRANSACTION
CAPITAL STRUCTURE: OVERVIEW
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€ M Q2 2015 YTD Q2 2014 YTD
Cash & Equivalents 51,7 40,4
LT Debt 591,8 503,1
ST Debt 135,9 94,9
Gross leverage 4,80 4,03
Net Debt 676,0 557,6
Net Debt/EBITDA 4,46 3,76
CHANGE
28,0%
17,6%
43,2%
19,2%
21,2%
18,7%
Healthy cash position
Increase in Net Debt is due to bringing off balance financed equipment onto the balance sheet
Leverage ratios exceptionally high because take into account full Net Debt impact of bond and only 2 quarters impact on profit
FINANCIAL RATIOS CLOSELY MONITORED
CAPITAL STRUCTURE: CREDIT KPI’S
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Q2 2015 YTD Q2 2014 YTD
Liquidity (*) 108,4% 99,5% -8,9 pps
Solvency 20,7% 20,7% 0,0 pps
Gearing (**) 2,45 2,15
Net Sr. Financial Debt 507,3 515,1
Net Sr. Debt / EBITDA (***) 3,35 3,47
Interest coverage 5,05 4,87
(*) Curr Assets / Curr Liabilities(**) Net Sr. financial debt / Equity excl Minority interest(***) Adjusted LTM EBITDA(for FY impact of on balance leases)
-1,5%
-3,6%
3,7%
CHANGE
13,9%
Net senior debt is at the same level as Q1 2015.
Higher interest cost due to the bond.
Interest coverage improved
SUFFICIENT LIQUIDITY TO MEET SHORT TERM COMMITMENTS
DEBT PROFILE
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KEY PRIORITIES FOR 2H 2015
OUTLOOK
Continued focus on quality and safety, always improving our safety record towards the goal of zero accidents
Increased focus on margin improvements and asset utilization due to slow start of the year
Continue to keep a young and modern fleet of cranes and trailers within financial capabilities
Continue to develop our people and further develop a high performance culture
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2015
FINANCIAL CALENDAR
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SUBJECT DATE
Financial results Q3 19 November, 10:00
QUESTIONS & ANSWERS
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INVESTOR RELATIONSCONTACTS
Wim SarensCEO
Magnus BjörkmanCFO
Ludo Verrijken Investor Relations
tel. +32 (0)52 319 319
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JUNE 30TH 2015 - CONSOLIDATED INCOME STATEMENT
APPENDIX 1
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JUNE 30TH 2015 - CONSOLIDATED BALANCE SHEET
APPENDIX 2
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JUNE 30TH 2015 - CONSOLIDATED CASH FLOW STATEMENT
APPENDIX 3
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Q2 FOREIGN EXCHANGE IMPACT
APPENDIX 4
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GLOBAL REACH
APPENDIX 5
AlgeriaArgentinaAustraliaBahreinBelgiumBoliviaBotswanaBrazilCanadaChileColombiaCongo-BrazzavilleCzech RepublicEcuadorEgyptEthiopiaFranceGermanyIndiaIndonesia
IraqIrelandItalyIvory CoastKazakhstanLithuaniaMalaysiaMauritiusMexicoMoroccoMozambiqueNamibiaNetherlandsNew CaledoniaNigeriaNorwayOmanPanamaPeruPhilippines
PolandQatarRussiaSaudi ArabiaSerbiaSingaporeSouth AfricaSouth KoreaSwedenTanzaniaThailandTunisiaTurkeyUkraineUnited Arab EmiratesUnited KingdomUnited StatesVenezuelaVietnamZambia
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