Stable revenue in 2013 provides platform for recovery
-- Revenue in the quarter 1,256 million euro (second quarter 2013: 1,274
million euro)
-- Operational EBITDA in the quarter -4 million euro (second quarter 2013:
-33 million euro)
-- Order intake YTD 2013 3,628 million euro, in line with revenue
-- Working capital Q3 stable versus Q2 despite regular seasonal increases
-- Earlier announced restructuring program largely completed and extended
-- Operational recovery Germany requiring more time; additional
restructuring announced
-- Constructive dialogue on covenant reset started
Key figures
Third quarter First nine months
in EUR million, unless otherwise
indicated 2013 2012 2013 2012
Revenue and other income 1,256.4 1,374.0 3,741.3 3,906.0
Operational EBITDA -4.0 -56.6 -50.3 -98.9
Non-operational costs -29.9 - -91.9 -
EBITDA -33.9 -56.6 -182.2 -98.9
Operating result (EBIT) -59.5 -78.5 -257.2 -161.4
Net result -96.1 -89.5 -326.6 -202.1
Order intake 1,119.1 - 3,628.1 -
Working capital 335.7 - 335.7 -
Net interest-bearing debt 835.7 - 835.7 -
Margins
Operational EBITDA margin -0.3% -4.1% -1.3% -2.5%
EBITDA margin -2.7% -4.1% -4.9% -2.5%
Employees 29,071 29,146* 29,071 29,146
* Excluding acquisition impact of EMC with 580 FTE, consolidated as of
January 2013
Gerard van de Aast, CEO: 'Operational performance in most of our
divisions is satisfactorily or recovering, also helped by the largely
completed restructuring program. However recovery of our German business
will take more time. Overall order intake has continued to be
satisfactorily and tracks revenue. Good progress has been made in
working capital management, the swift implementation of the
restructuring plans, management upgrades and strengthening of business
controls. We are in a constructive dialogue regarding a covenant reset.
This will give the company time to improve its operational performance.'
Covenants and headroom
Imtech is currently engaging in a constructive dialogue with its most
important financiers regarding an amendment of its financing agreements,
including a covenant reset. This covenant reset is required as a result
of a slower than anticipated recovery of Imtech's business, in
particular in Germany. Imtech expects to publish the reset covenants on
or before the publication of its annual results on March 18th 2014.
Per September 30th 2013, Imtech has committed cash facilities of circa
1,250 million euro and a headroom under these facilities of circa 335
million euro. Outstanding bank guarantees amount to 897 million euro
with a headroom under existing guarantee facilities of 155 million euro.
These headrooms are sufficient for the on-going operations of the
company.
Operational recovery Germany will take more time
In Germany, the new management team under the leadership of Felix
Colsman has started to rebuild the business. Germany is a strong market
where Imtech can build on a good reputation and market leadership
position. However, our German business is trading weaker than assumed as
by now the full inefficiencies due to prior management have become
visible. Cost reduction and upgrading of the organization will address
the issues and have already started. The earlier announced reduction of
550 FTE in Germany is halfway and with the recently agreed social
framework, the remainder of the redundancies will be implemented. An
additional restructuring program of 300 FTE will be implemented in 2014
to reduce the cost base further. In addition to the redundancies a
general cost savings program (including stopping sponsoring activities)
of 40 million euro covering 2013-2015 is underway. Nevertheless our
technology competences are undisputed and in demand by blue chip
customers like in prior years. These technology competences and market
leading position will be the basis of our recovery in Germany. The
Eastern European activities have been significantly downscaled,
especially in Poland, and are now mainly focused on projects for German
customers in particular in the automotive industry.
Restructuring program
The restructuring program as announced in April 2013 has progressed
well. In total 1,355 FTE have been made redundant at the end of Q3 2013.
The program has been extended in particular in Germany, Nordic, Eastern
Europe and Marine. In total we now expect around 2,250 redundancies.
The Benelux, Traffic & Infra and Marine divisions have finalized the
restructuring program. Germany is halfway and expects the 2013 reduction
program to finish by year end and will implement a further reduction of
300 FTE in 2014.
In Eastern Europe and in particular in Poland, the businesses are in
process of restructuring with around 230 redundancies. The Nordic
business will restructure with 240 redundancies to capture the
integration benefits of past acquisitions.
Total cost in 2013 of the restructure programs are now estimated at
around 90 million euro (from 80 million euro). Payback on average is 15
months. Cost saving benefits from these redundancies will become visible
in coming periods.