Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Presentation (March 2016)
38 slides from Fugro Nv's investor presentation, March 2016
Slide 1: General investor presentation
General investor presentation Amsterdam, March 2016
Slide 2: Fugro at a glance
Fugro at a glance 2 www.fugro.com
Slide 3: Collecting essential data for sustainable construction
Collecting essential data for sustainable construction Geo- and asset integrity data is essential for sustainable development and management of large-scale construction, infrastructure and natural resources Reliable, accurate geo-intelligence about the earth and environment is starting point for
Slide 4: Geo-intelligence & asset integrity solutions
Geo-intelligence & asset integrity solutions Transforming acquired data into information which is crucial to our clients’ large-scale construction and infrastructure By being involved in all stages of the asset life cycle, from data acquisition to consulting, we are a true partner to our clients
Slide 5: Markets
Markets Oil & gas Building & infrastructure Revenues by market segment Building & infrastructure 16% Power 6% 2% Mining 2015 2% Other Oil & gas 74% Power Mining Revenues by client type Governments Major oil 15% 17% companies Other Independent 12% 13% oil 2015 companies Contractors 23% 20% National o
Slide 6: Exposure across full oil and gas value chain
Exposure across full oil and gas value chain Final investment decision Exploration Development Field Production Abandon & & appraisal planning development & maintenance decommission Site investigation Survey Construction support Positioning signals & serv. Positioning signals & serv. MetOcean Site i
Slide 7: Global reach – local presence
Global reach – local presence 2015 revenue and employees per region (2015) 7 www.fugro.com
Slide 8: Market leading positions
Market leading positions Clear market leadership in several market segments Capability to deliver complete suite of services, from data acquisition, data management (processing, interpretation, visualisation and hosting), through to consultancy and solutions Independent position, which assures
Slide 9: 2015 Project examples
2015 Project examples Site investigation for Fehmarnbelt Link tunnel Three year extension of construction support between Denmark and Germany services contract with McDermott Middle East Ocean bottom cable seismic project for Site characterisation for Alaska LNG: largest Pemex (Seabed) LNG developme
Slide 10: Building on Strength strategy
Building on Strength strategy Portfolio changes to reflect clear strategic choices decision taken to focus on core geotechnical and survey activities seeking to reduce stake in Seabed Geosolutions, to find a partner for or divest (part of) the Subsea business and to exit light well interventio
Slide 11: Our divisions
Our divisions Survey Geotechnical Revenues by division Geoscience 15% Geotech 31% Subsea 2015 18% Survey 36% Subsea Services Geoscience 11 www.fugro.com
Slide 12: Geotechnical division: profile
Geotechnical division: profile Characterising specific geologic conditions and engineering properties of soils and rocks Fugro also offers environmental engineering services geohazard assessment construction materials testing Market position Onshore (60% of revenue) global market share ~ 15%
Slide 13: Survey division: profile
Survey division: profile Extensive range of mapping services Providing client with comprehensive reports on natural and man-made features of earth’s surface (including seabed) shallow geological features below surface Fugro also offers positioning services (signals and services) construction
Slide 14: Subsea Services division: profile
Subsea Services division: profile Support services related to subsea infrastructure, throughout lifecycle of oil & gas fields inspection, repair and maintenance (IRM) light construction support and installation drill support tooling Market position One of the largest subsea service providers
Slide 15: Geoscience division: profile Seabed Geosolutions
Geoscience division: profile Seabed Geosolutions Collection of geophysical data on seabed via ocean bottom cables or nodes where obstructions do not allow for streamer based data acquisition where data of particularly high quality is required Resulting in 3D and 4D images of a reservoir, support
Slide 16: Market developments
MARKET DEVELOPMENTS 16 www.fugro.com
Slide 17: Macro drivers
Macro drivers Over the coming decades, climate change, population growth and urbanisation will increase demand for energy, water, large-scale construction, infrastructure and natural resources 17 www.fugro.com
Slide 18: Oil & gas market: high volatility, low visibility
Oil & gas market: high volatility, low visibility Strongly declined oil price resilience of US shale production in face of lower income continued high output OPEC to protect market share looming higher Iranian exports slow down of demand growth; concerns over Chinese economy Leading to lower
Slide 19: Supportive long term trends oil & gas market
Supportive long term trends oil & gas market Energy from fossil fuels will continue to dominate for years to come Market will eventually rebalance and new field developments will be required continued global demand growth – albeit at slower pace than before (e.g. China) reduced investments in sh
Slide 20: Building and infrastructure fundamentals steady in most regions
Building and infrastructure fundamentals steady in most regions Good opportunities overall, except in countries strongly dependent on oil and mineral resources income in many key economies in Africa, lower spending on infrastructure slowdown expected in Middle East General trends shift fro
Slide 21: Power: low carbon agenda gathering momentum
Power: low carbon agenda gathering momentum Increasing importance of low-carbon energy, resulting in increased investments Strong commitment of countries to lower carbon emissions (UN climate conference) Leading to opportunities for Fugro offshore wind cost of offshore wind is continually
Slide 22: FY2015 Financial update
FY2015 FINANCIAL UPDATE 22 www.fugro.com
Slide 23: Historical financials
Historical financials X EUR million Revenue Net result 2,572 2,424 2,363 2,165 428 290 -373 -458 2012 2013 2014 2015 2012 2013 2014 2015 EBIT (margin) Cash flow excluding exceptional items From operating activities after investments 307 836 267 315 14.2% 11.0% 113 81 3.2% 4.8% 43 14 2012 2013 2014 2
Slide 24: General highlights FY2015
General highlights FY2015: Improved cash flow in continued challenging oil and gas market Fugro is dealing decisively with downturn in oil and gas market reducing capacity, operating cost and investments focusing on winning work, strengthening leadership positions and executing well on projects
Slide 25: Key financials FY2015
Key financials FY2015 X EUR million Revenue EBIT (margin) Capital employed ROCE* Cash Flow excluding exceptional items excluding exceptional items 2,572 2,363 2,231 315 1,690 4.8% 3.2% 3.9% 42 81 113 1.3% 2014 2015 2014 2015 2014 2015 2014 2015 2014 2015 Rev. Reported decline of 8.1% or 17.3% curr
Slide 26: Revenue decline in all divisions except Seabed
Revenue decline in all divisions except Seabed Reported Currency comparable X EUR million - 8.1% -17.3% 2,572 -35 2,572 -108 -52 -185 -120 119 -56 2,363 236 2,363 -222 61 -56 2,127 2014 Geotech Survey Subsea Seabed multi-client 2015 2014 Geotech Survey Subsea Seabed multi- 2015 currency 2015 100% cl
Slide 27: EBIT improvement driven by turnaround Seabed
EBIT improvement driven by turnaround Seabed excl. exceptional items X EUR million +39% 9 113 119 81 -22 -23 -51 2014 Geotechnical Survey Subsea Seabed Other Geoscience 2015 incl. multi-client 27 Annual results 2015 www.fugro.com
Slide 28: Substantial cost savings
Substantial cost savings Compared to YE14 annualised savings (x EUR million) FTE Geotechnical - 564 36 Survey - 500 34 Subsea Services - 432 45 Seabed Geosolutions - 81 11 - 1,577 126 Vessel capacity Geotechnical -4 56 Survey -6 45 Subsea Services -2 23 124 Total 250 Annualised cost reduction of EUR
Slide 29: Working capital reduction initiative delivers ahead of plan
Working capital reduction initiative delivers ahead of plan Working capital Working capital improvement programme (x EUR million) 2015 2014 Programme now covers ~95% of outstanding receivables and work in progress Working capital 282 423 Despite increased client pressure on of which inventories
Slide 30: Strong capex discipline
Strong capex discipline Capex will be further reduced until market conditions improve Necessary maintenance and project based capex will not be compromised As per 2016, only 1 new vessel under construction (Fugro Venturer, Survey division) 280 187 Replacement + 160 expansion capex ~100 91 ~30
Slide 31: Strong cash flow due to lower working capital, curtailed capex and asset sales
Strong cash flow due to lower working capital, curtailed capex and asset sales 217 - 80 6 - 161 152 -1 315 -196 182 119 Operating Receivables Payables Inventories Capex Proceeds Other CF from Cash flow Cash flow Change CF before sale investing from from financing in net changes multi-client operatin
Slide 32: Improved balance sheet ratios and strong liquidity
Improved balance sheet ratios and strong liquidity Fixed charge cover Debt maturity profile (YE 2015) private placement loans 356 3.1 3.1 revolving credit facility 2.9 2.9 2.8 227 > 1.8x covenant 185 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 31 Net debt/EBITDA 2016 2017 2018 2019 2020 2021+ < 3.0x New EUR 500
Slide 33: Dividend
Dividend We strive for pay-out ratio of 35% to 55% of net result No dividend over the years 2014 and 2015 due to the negative result and in order to strengthen the balance sheet Historical dividends (x EUR) 2.5 60% 56% 54% 50% 2 43% 43% 40% 40% 41% 0.50 40% 39% 1.5 1.50 1.50 1.50 1.50 1.50 1.50 30%
Slide 34: Outlook
OUTLOOK 34 www.fugro.com
Slide 35: Backlog next 12 months: decline in line with market
Backlog next 12 months: decline in line with market 12 month backlog Currency comparable growth (x EUR million) 4Q14 3Q15 4Q15 Y-on-Y Q-on-Q onshore Geotech 306 270 304 (6.3%) 10.8% offshore Geotech 180 115 131 (31.0%) 11.2% Geotech total 486 385 435 (15.5%) 10.9% Survey 586 494 473 (22.9%) (6.4%) S
Slide 36: Outlook 2016: challenging market continues
Outlook 2016: challenging market continues In 2016, we will continue to reduce costs, headcount and vessels in line with activity levels Pressure on EBIT margin as cost reduction measures cannot fully compensate for anticipated loss in revenue and continued price pressure Focus on strengthening our
Slide 37: Key take-aways
Key take-aways World's leading service provider for collection and interpretation of earth and engineering data Providing vital information for the design, construction and maintenance of clients’ large constructions and infrastructure Fugro is dealing decisively with current challenging condition
Slide 38: Thank you
THANK YOU For questions or remarks, contact Investor Relations [email protected]