Half Year 2020 Indra Sistemas SA Earnings Call Transcript

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

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : First one is a clarification regarding your full year EBIT guidance. Does this guidance include the, I would say, the already expected EUR 30 million restructuring and you -- the level of more or less equivalent to what you had last year? Or is it integrated in your action plan? And the second question is regarding T&D, what percentage of the initial targeted revenue do you expect to deliver on a full year basis this year? Or other way to say that what level of catch-up you expect in H2 and what don't you expect to catch up?

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : And regarding the ordinary level, you confirm that it's in the ballpark of EUR 30 million last year or do you believe...

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : Yes, the catch-up of end-year revenue in H2 after the slippage you had in H1. What percentage of the initial targeted revenue do you expect to deliver on a full year basis on T&D? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JULY 29, 2020 / 4:30PM, IDR.MC - Half Year 2020 Indra Sistemas SA Earnings Call

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : Yes, yes. So to summarize, it was really on T&D, so for H2 in T&D, you still expect a decline on -- a year-on-year decline in H2 for T&D?

Question: Nicolas David - ODDO BHF Corporate & Markets, Research Division - Analyst : Yes, yes. I had in mind that you are working on several projects with milestone going on and as you may be able to validate a milestone with the

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : My first question is, can you give us the post-tax impact of the EUR 95 million write-off? My second question is related different levers for your full year guidance, especially on the second half. And here, probably the question is whether you are expecting a second half with a similar underlying trend that we have seen in H1. And on top of that, we have to bear in mind roughly another EUR 62 million from COVID and others, partially offset by the reversal of the delays on certifications that you have been -- that you have experienced in H1? No. The way to look at it is that, for example, we are addressing a COVID impact of only EUR 15 million with no reversal. My question is trying to address the potential sensibility of a second wave on COVID. And my final question is on the EUR 100 million cost savings from next year. It is reasonable to believe that part of those potential savings, you might need it to reinvest on further repositioning on digitalization or optimization or you will need extra workforce in some of your new trends. I'm trying to figure out, according to your experience on a midterm basis, from those EUR 100 million, what you might be able to consolidate at the group level.

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst :

Question: Manuel Lorente - Mirabaud Securities Limited, Research Division - Analyst : Okay. So just for the clarification of my second question. What you are saying is that on your approach to the second half, from the line that appears on Page 12 of your presentation of those EUR 62 million of COVID and others, you are expecting 0?