martifer group

261 Pages·2015·7.7 MB·English

01 | MARTIFER GROUP
Message from the Board
Highlights
Key Financial Indicators
Main Events

02 | GUIDELINES
Activity
International Presence
History
Market Environment

03 | FINANCIAL PERFORMANCE
Consolidated Result Analysis
Revenues
EBITDA and Net Profit
Consolidated Capex
Consolidated Capital Structure Analysis

04 | ANALYSIS BY SEGMENT
Metallic Constructions
RE Developer
Solar

05 | INDIVIDUAL FINANCIAL INFORMATION

06 | MARTIFER SHARE PERFORMANCE

07 | FUTURE PROSPECTS

08 | MAIN RISKS
Financial Risks
Operational Risks
Legal Risks

09 | PROPOSAL OF RESULTS ALLOCATION

10 | OTHER INFORMATION

2 ANNUAL REPORT 2014
11 | CONSOLIDATED FINANCIAL STATEMENTS

12 | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13 | INDIVIDUAL FINANCIAL STATEMENTS

14 | NOTES TO INDIVIDUAL FINANCIAL STATEMENTS

ANNUAL REPORT 2014 3
This translation into English of the Portuguese document was made only for the convenience of non-Portuguese speaking shareholders. For all intents and
purposes, the Portuguese version shall prevail.
4 ANNUAL REPORT 2014

6 ANNUAL REPORT 2014

01 | MARTIFER GROUP
MESSAGE FROM THE BOARD
Dear Shareholders,
The past few years, and 2014 in particular, were especially difficult for the companies in the construction segment and, particularly,
for Martifer.
However, we have been taking measures to overcome the difficulties faced during these last years.
In 2014, we continued to follow the strategy of selling non-core assets, having concluded the sale of the participation in Nutre, and
we initiated the process of selling Martifer Solar, which we expect to be settled in 2015.
In the metallic construction area in 2014:
 We increased equity;
 We endowed the Group, through West Sea, with an infrastructure that allows the pursuit of new opportunities in the naval
segment;
 We entered a new market, Algeria, having been awarded the “Djelfa” project.
In the RE Developer area:
 We completed the sale of Rosa dos Ventos in Brazil, and signed a conditional sale agreement of the Gizalki wind farm in Poland
to Ikea Group;
 We leveraged the project Ventinveste with the financing obtained for project Âncora.
Keeping in mind the steps taken throughout the year, we are more focused on the main goals defined in the Group’s strategy:
 Reinforcement of the international presence, focusing on three core geographies (Europe and the Middle East, Africa, and Latin
America) and on attractive opportunities with high profitability;
 Focus on the metallic construction core business (metal mechanical construction, aluminium and glass façades, infrastructures
for oil & gas, and naval industry);
 Adoption of a new organizational model:
 Resizing and readapting the structure, aligning it with the international presence;
 Improvement of the business processes and operational efficiency;
 Development and retention of human resources;
 Optimization of the industrial footprint and adjustment of production layouts;
 Improvement of the Group’s financial situation:
 Divestment in non-core businesses and sale of real estate assets;
 Reduction of cash costs, through a program for the optimization of the cost structure and the working capital;
 Gradual decrease of the net debt and the debt/EBITDA ratio;
 Adequacy of the inflows maturity of the operational activity and investment (divestment) to the outflows of the financing activity.
We believe that the strategy we have defined will lead, in the future, to an improvement in the Group’s profitability.
Stakeholders, we thank you once again for the trust placed in us.
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HIGHLIGHTS

• Total Revenues of 226 M€, from which 201 M€ in Metallic Construction and 25 M€ in
RE Developer
• Total Revenues in the 4Q2014 with an increase of over 50 % when compared with
3Q2014
• EBITDA of 6 M€, which corresponds to a consolidated EBITDA Margin of 3 %
• Net Profit of continued operations strongly influenced by the reinforcement of
provisions and impairment losses (39 M€) as well as financial expenses (30 M€)
• Consolidated Net Profit attributable to shareholders of -94 M€, strongly penalized by
the net profit of discontinued operations of -31 M€, and by the reinforcement of
provisions and impairment losses
• Consolidated Net Debt reduction to 283 M€, a 53 M€ decrease compared with 2013

MAIN FINANCIAL INDICATORS
M€ Dec-14 Dec-13 Var. (%)
Revenues 225.8 319.9 -29%
EBITDA 6.0 15.7 -62%
EBITDA margin 3% 5% -2.3 pp
Depreciation & Amortization -14.6 -14.3 -2%
Provisions & Impairment Losses -38.6 -28.3 -37%
EBIT -47.3 -26.9 -76%
EBIT margin -21% -8% -12.5 pp
Financial Results -19.4 -34.4 44%
Profit before taxes -66.7 -61.2 -9%
Income tax -4.9 -3.6 -35%
Profit after taxes on continued operations -71.5 -64.8 -10%
Discontinued operations’ Result -65.2 -5.9 <-100%
Attributable to non-controlling interests -34.4 -1.7 <-100%
Attributable to shareholders -30.7 -4.2 <-100%
Net Profit -136.7 -70.8 -93%
Attributable to non-controlling interests -43.2 -1.8 <-100%
Attributable to shareholders -93.5 -69.0 -36%
Earnings per share € -0.957 -0.705 -36%

ANNUAL REPORT 2014 9
15
-137
2014
6
226
8
-71
2013
16
320
-200 -100 0 100 200 300 400
Capex Net Profit EBITDA Revenues

MAIN EVENTS
JANUARY 2014
West Sea signs a contract for the subconcession of Estaleiros Navais de Viana do Castelo
After an international public tender, Martifer Energy Systems and Navalria, subsidiaries of Martifer Group, were awarded with the
subconcession for the “private use of public domain and of the areas allocated to the dominial concession” formarly attributed to the
company Estaleiros Navais de Viana do Castelo (ENVC).
Martifer Group, via its new subsidiary West Sea – Estaleiros Navais, Lda., aims to develop its activity in the national and
international markets and implement in the areas included in the ENVC subconcession a shipbuilding and repair project, which is
expected to create 400 new jobs in the next three years. With this subconcession, Martifer Group will increase its capacity in
shipbuilding and repair. The contract was signed in January 2014.

Martifer Solar USA INC and Martifer Aurora LLC begin the voluntary process for Chapter 11
On 21st January 2014 the affiliates Martifer Solar USA INC and Martifer Aurora Solar LLC started voluntary restructuring processes
under Chapter 11 (US Bankruptcy Code).

10 ANNUAL REPORT 2014