1H20 Results

Order intake increased by +8% in 1H20 vs 1H19, pushed by the strong growth registered in Transport & Defence, reaching the backlog another historic high (€5,094m), implying +15% growth.

Revenues fell -2% in local currency (-4% in reported terms) in 1H20, affected by the impact of covid. Revenues in the second quarter decreased -5% in local currency and -8% in reported terms.

Operating Margin amounted to €43m in 1H20 vs €102m in 1H19 (equivalent to 2.9% operating margin vs 6.6% in 1H19) affected by the delays and the lower activity due to covid.

1H20 EBIT reached €-78m vs €79m in 1H19 (€-97m in 2Q20 vs €40m in 2Q19) affected by the delays and lower activity due to the covid, which has more impact in the second quarter, and by the impairments of intangible assets (€-95m).

Cash generation in 1H20 improved in €+149m vs 1H19. Net Debt / EBITDA LTM ratio (excluding the impact of IFRS 16 and the impairments of intangible assets) up to 2.7x vs 2.4x in 1H19.

Indra continued to strengthen its solid liquidity position during the quarter, and has more than €1,100m between cash and available lines as of June 30, 2020.

Indra has launched a postcovid action plan to redirect investments and optimize costs to adapt to the structural changes of the business, which already include a negative impact on EBIT of €95 million in this quarter due to impairment of intangible assets. The estimated annual savings from 2021 onwards are €100m.