2021 Santander Iberian Conference
C O R P O R A T E P R E S E N T A T I O N & F I N A N C I A L H I G H L I G H T S
D I S C L A I M E R
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Amid one of the most important crisis in recent history, we have continued creating value_
Once Covid-19 impacted our business, we set up minimum performance goals to ensure value creation for our shareholders. We have outperformed the goals we set up for the year:
Thanks to the RESILIENCE of the business and the excellence in EXECUTION
Q4 2020 turnover will show a recovery of the business_
4
The recovery will be reflected also in terms of Margins_
In spite of the negative one-offs in the Q4 2020 and during the rest of the year.
We will maintain a strong Net cash position_
Thanks to a 2020 Operating-FCF generation greater than the payment commitments of the year
In addition to the excellent results and value creation, we have continued developing our strategic objectives for each of the business segments_
payment commitments of the year.
Resiliency against Covid-19: creating value for our shareholders
Maintain positive results for the year: we have maintained a positive net income every quarter to close the year with a double digit net income.
Have a positive operating FCF for the year: not only will it be positive but enough to meet our financial guideline of EBITA conversion into operating FCF and face the
Development of strategic objectives for each of the business segments
Unlock the value of the renewables business area in B2B 360 Projects: we have a 1 GW pipeline for 2025 and have advanced conversations to include a minoritarian partner.
Move towards higher added value contracts in B2B Services: in 2020 we have divested mature operations to focus resources on contracts with higher efficiency opportunities.
Complete the transition from a retailer to a B2C Services Integrator: the restructuring process of the B2C segment has been completed during the year
B2B 360 Projects Highlights_
Resilience of the business & New projects
- The segment has been highly resilient during 2020 and maintained both revenue and profitability levels compared to 2019.
- During 2020 we have been awarded with several projects that assure a healthy growth of the activity in the mid-term. The most relevant one has been the Buin-Paine hospital in Chile, which is due to start in 2022.
Renewables business area: towards being a relevant global player
- During 2020 we have completed a 18 MW biomass plant in Argentina, and we have carried out the construction of a 100 MW wind farm in México, which is expected to go into operation in 2022.
- Strong pipeline: along with BAS, our financial partner, we have disclosed a 1GW pipeline of renewable projects for 2021-2025. We are incorporating a minority partner to strengthen the activity further.
B2B Services Highlights_
Full recovery and growth in Q4 2020
• The segment has achieved QoQ growth in the Q420, after being impacted since the beginning of the health crisis (-7% Q120, -31% Q220, -24% Q320) due to production slowdown and lock downs of our clients.
Moving towards higher added value contracts
- We have gained new strategic contracts in the energy and industry sectors (e.g. the 3 rd contract with ENEL in Latam)
- At the same time, we have undertaken the divestment of non-strategic contracts: Telefonica's last mile services and IT outsourcing services in Spain
M&A: taking advantage of opportunities
- Famaex (a B2B2C services Digital platform), Dimoin and Hivisan (industrial services companies) were acquired during 2020
- We expect that further M&A opportunities will unveil.
B2C Highlights_
Number of services
Electricity, Gas & Telecommunications services
Growth continues, despite mobility restrictions
• We closed 2020 with over 240,000 services: we have acquired +90,000 new net customers during the year, taking into account Electricity, Gas and Telecommunication contracts.
Positive Contribution Margin, thanks to swift decisions
- Quick management decisions allowed to mitigate the impacts during severe lockdown periods (when the physical distribution channel was closed).
- The recurrent turnover coming from our client base mitigated the decline in retail sales.
Restructuring process completed to ensure future growth
• The transformation of the business (from a retailer to a personal and household services integrator) required operational and structure adjustments that have been completed in 2020.
2021 prospects: back to the road of growth_
Ambitious objectives: our guidance for the 2019-2023 (1)_
ESG: committed to our stakeholders_
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We are Dominion.
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