Full Year 2019 Indra Sistemas SA Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : Three questions, if I may. The first one is on fourth quarter profitability, which looks pretty good actually, especially in the context of a relatively soft quarter in terms of revenue, so to speak. I was wondering, I don't know if I have the numbers right, but I remember the fourth quarter last year, you booked a reverse provision amounted to EUR 12 million. So actually, the correct number to compare this EUR 94 million EBIT is EUR 72 million rather than you reported EUR 84 million. That will imply a EUR 30 million -- 30%, sorry, growth in terms of EBIT with lower revenues. So I don't know if you have any extraordinary or any positive impact in terms of contract or any other issue that might explain to that improvement in the operational leverage of the business because, actually, if you make the same math looking rather than the fourth quarter last year, third quarter this year, right? You have, have roughly EUR 46 million of higher profitability with only EUR 117 million revenues. Anyway, my point is whether we have -- you have seen any extraordinary in the solid performance of the fourth quarter's standalone, especially in the context of the revenue evolution? My second question is regarding the levers of the guidance, right? Revenue-wise, there has been some delays on the Transport & Traffic on moving parts of revenue from 2009 (sic) [2019], 2020. Whether you can give us an indication of the amount of those moving parts from 1 year to the other. And in terms of EBIT, I think that you have said, Fernando, that you expect a lower ESA contribution this year versus last year. And I would like to ask regarding the evolution of FCAS versus Eurofighter. Is this going to be something adding on top of the FCAS? Or the revenue that you should expect from the FCAS is going to be against the evolution of Eurofighter? And my final question is regarding the free cash flow without the prior written consent of Thomson Reuters. 'Thomson Reuters' and the Thomson Reuters logo are registered trademarks of Thomson Reuters and its affiliated companies. FEBRUARY 27, 2020 / 5:30PM, IDR.MC - Full Year 2019 Indra Sistemas SA Earnings Call uses of that EUR 150 million. You are going to be using to delever the business, to continue faster repositioning in terms of M&A, or to open the door to the dividend distribution?

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : Okay. So maybe the proper way to analyze Eurofighter this year is, okay, you have -- or you expect a slightly lower contribution from Eurofighter this year versus last year to partially offset what you have seen on 2018 that you will finally end up with a contribution that's slightly higher than 2018. That should be the correct way to look at it in a context of our long-term growth or higher contribution from this business? Or what is the reason why you expect lower contribution from Eurofighter this year?