Fugro Nv · EURONEXT:FUR
Fugro Nv — H1 2022 Earnings Presentation
26 slides from Fugro Nv's earnings presentation, Jul 26, 2022
Slide 1: H1 2022 results
H1 2022 results Note that the numbers in this presentation are unaudited; Fugro’s H1 2022 report will be published on 28 July 2022
Slide 2: Key messages
Key messages Market environment H1 2022 results New financing ▪ High client demand, in particular for ▪ Revenue +17.2% ▪ Extended maturities renewables services ▪ EBIT margin 4.6% (H1 21: 2.5%) ▪ Improved terms and conditions; ▪ Fugro has responded effectively to ▪ Operating cash flow increase, offs
Slide 3: Growth in all markets, in particular for renewables services
Growth in all markets, in particular for renewables services Continuing diversification towards renewables, infrastructure and water % share of Fugro’s revenue by key market segment1 % H1 22 revenue growth by key market segment2 39% 39% 39% 16% 45% 54% 52% 57% 66% 74% 31% 24% 23% 25% 21% 7% 11% 14%
Slide 4: Markets affected by macro-economic factors
Markets affected by macro-economic factors Recovery from Covid counter-balanced by inflation & supply chain pressures, impact expected to weaken WHO declares Russian invasion of global pandemic Ukraine March 2020 February 2022 US$/MMBtu Nominal US$ US$/bbl (2010=100) Forecast 140 Metals & minerals3
Slide 5: Fugro's main markets
Fugro’s main markets Comparing Q2 2022 forecasts to Q4 2021: some challenges but promising outlook Renewables Oil & Gas Infrastructure Water Capex renewables1 Number of FID1 Construction output Global water 60 B 250 growth, real1 infrastructure capex1 50 B 5,0% 160 B 200 4,5% 140 B 40 B 120 B 150 4,
Slide 6: Fugro's quick & adequate response
Fugro’s quick & adequate response Positive outlook supported by the way we acted and learned from challenges we encountered Unfavorable events… … adequately dealt with ▪ Upgraded Terms & Conditions including escalation clauses Unprecedented inflation ▪ Implemented limited bid validity ▪ Reduced fuel
Slide 7: We deliver our services across the globe, in our focus areas
We deliver our services across the globe, in our 3 focus areas Small selection of awarded & delivered projects in last six months 7 H1 2022 Sustainable infrastructure Energy transition Climate change adaptation
Slide 8: Digitalisation of power network management
Digitalisation of power network management system for Waipa Networks, New Zealand Delivering digitised power network management system for improving safety & reliability by developing 3D virtual world asset model 8 H1 2022
Slide 9: Integrated site investigation for Atlantic Shores
Integrated site investigation for Atlantic Shores Offshore Wind Plaatje waarin duidelijk staat/laat zien wat wij doen Ander project! Performing integrated site characterisation services to deliver timely, high-quality soil information needed to optimise foundation and cable design 9 H1 2022
Slide 10: Irish coastal resilience strategies for OPW
Irish coastal resilience strategies for OPW Acquire and process high- resolution lidar Geo-data to deliver 3D elevation model to support Office of Public Works on developing coastal resilience strategies 10 H1 2022
Slide 11: Part 2 H1 2022 results
Part 2 H1 2022 results 11 H1 2022
Slide 12: Highlights H1 2022 results
Highlights H1 2022 results X EUR million Revenue EBITDA2 (margin) 11.7% +17.2%1 10.8% 15.1% 15.4% 98 833 73 71 60 7.4% 673 4.6% 27 13 H1 21 H1 22 Q1 21 Q2 21 H1 21 Q1 22 Q2 22 H1 22 Backlog EBIT2 (margin) +21.7%1 8.7% 4.6% 8.1% 2.5% 41 32 38 1,105 -5.3% 17 -0.7% 863 2.1x -3 -15 H1 21 H1 22 Q1 21 Q2
Slide 13: Strong revenue growth combined with margin expansion
Strong revenue growth combined with margin expansion Revenue X EUR million ▪ Double-digit increase in marine and land driven by revenue growth in all market segments +17.2%1 833 ▪ FX effect: mostly US dollar appreciation 43 33 30% Marine 673 84 Revenue H1 2022 Land 70% H1 21 Marine Land FX effect H1
Slide 14: Marine - profitability improvements in APAC and Americas
Marine - profitability improvements in APAC and Americas Revenue EBIT X EUR million, excl specific items 3.8% +17.8%1 3.0% 579 22 14 467 H1 21 Europe- Americas Asia Middle FX effect H1 22 H1 21 Europe- Americas Asia Middle H1 22 Africa Pacific East & Africa Pacific East & India India ▪ Europe-Africa
Slide 15: Land - continues on its upward trajectory
Land - continues on its upward trajectory Revenue EBIT X EUR million, excl specific items +15.9%1 6.4% 254 16 206 1.2% 3 H1 21 Europe- Americas Asia Middle FX effect H1 22 H1 21 Europe- Americas Asia Middle H1 22 Africa Pacific East & Africa Pacific East & India India ▪ Europe-Africa Site characteri
Slide 16: Increased operating cash flow offset by higher capex
Increased operating cash flow offset by higher capex Working capital increase related to due to combined effect of revenue growth and seasonality H1 2021 H1 2022 X EUR million 72 44 -80 -90 -65 -27 11 -53 4 -69 -6 9 -64 -75 operating changes capex other CF CF free cash operating changes capex other
Slide 17: Capital expenditure and working capital management
Capital expenditure and working capital management Capex Working capital 16.1% 15.7% 12.0% 12.3% 11.6% 13.0% 11.2% 10.9% 10.8% 83 81 80 8.1% 67 218 255 33 182 185 178 153 178 159 167 42 42 112 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 28 48 41 38 19 48 Days of revenue outstandin
Slide 18: Comprehensive sustainability-linked financing
Comprehensive sustainability-linked financing Extension of debt maturities and further de-risking of capital structure EUR 400 million sustainability-linked bank financing arrangement ▪ EUR 200 million revolving credit facility due 2025 at EURIBOR +2.75%1 ▪ EUR 200 million term loan due 2025 at EURI
Slide 19: Comprehensive sustainability-linked financing
Comprehensive sustainability-linked financing Rationale Net leverage ▪ Significantly reduced cost of debt 3.7x ▪ RCF interest reduced from +3.50% to +2.75%1 2.1x 2.0x 1.8x 1.7x ▪ Term loan: interest reduced from +6.50% to +3.50%2 ▪ Future proof capital structure 1.5x ▪ Demonstrates Fugro’s commitmen
Slide 20: Sustainability-linked financing framework - performance targets
Sustainability-linked financing framework - performance targets KPI #1 FRAMEWORK: 2025 TARGET Reduce vessel CO2 emission intensity by 2025 20% reduction in 2025 vs. 2020 baseline Vessel CO2 emission intensity ▪ Definition: Vessel CO2 emission intensity related to operational days 16.4 15.4 15.8 14.9
Slide 21: Net result improvement
Net result improvement H1 2022 H1 2021 x EUR million Adjusted EBIT 38.0 16.7 Restructuring costs EUR 1.4 million and Specific items 1 (3.8) (5.9) 1 impairments EUR 2.4 million EBIT 34.2 10.8 Finance income 1.1 3.1 Interest expenses 2 (17.3) (22.4) 2 Lower thanks to lower debt following redemption of
Slide 22: Part 3 Outlook
Part 3 Outlook 22 H1 2022
Slide 23: Outlook 2022
Outlook 2022 ▪ Ongoing growth in all core markets Resulting in ▪ continued revenue growth ▪ further margin expansion towards 2023-2024 mid- term targets while focused on actively managing any impacts of geopolitical uncertainties, inflationary and supply chain pressures ▪ Capex of around EUR 110 mil
Slide 24: Mid-term targets 2023-2024
Mid-term targets 2023-2024 EBIT margin: 8-12% Drivers 12% Volume In particular driven by renewables, infrastructure and water 8% Price Value-based pricing; integrated digital solutions 3.5% 4.3% 2020 2021 2022 2023-2024 Productivity Disciplined cost management; operational excellence; digital transf
Slide 25: For inquiries contact Director Investor Relations
For inquiries contact Director Investor Relations Catrien van Buttingha Wichers [email protected] 25
Slide 26: Disclaimer
Disclaimer NEITHER THIS ANNOUNCEMENT NOR ANY COPY OF IT MAY BE TAKEN OR TRANSMITTED, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, INTO THE UNITED STATES OF AMERICA, (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA (THE “UNITED STATES”), AUSTRALI