Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Presentation (May 2021)
38 slides from Fugro Nv's investor presentation, May 26, 2021
Slide 1: General investor presentation
General investor presentation 26 May 2021
Slide 2: 1. Profile & strategy
1. Profile & strategy
Slide 3: Our planet is a complex system
Our planet is a complex system 3 Fugro investor presentation - May 2021
Slide 4: The earth’s surface is even more complex
The earth’s surface is even more complex 4 Fugro investor presentation - May 2021
Slide 5: We unlock insights from Geo-data
We unlock insights from Geo-data Using our ‘triple A’ approach we provide our clients with insights about the characterisation of a site as well as the integrity of their assets Acquisition Analysis Advice 5 Fugro investor presentation - May 2021
Slide 6: Fugro at a glance
Fugro at a glance Excellent diversification of business lines & market segments ▪ World’s leading Geo-data specialist: collecting and 2020 revenue by business line 2020 revenue by market segment analysing Geo-data for designing, building and operating any asset on this planet 7% Marine site characte
Slide 7: Marine services address the full lifecycle of offshore assets
Marine services address the full lifecycle of offshore assets Uniquely capable in both site characterisation and asset integrity services operation & site appraisal design & contracting construction decommissioning maintenance Final investment decision Marine site characterisation services Seep surv
Slide 8: Land services address the full lifecycle of onshore assets
Land services address the full lifecycle of onshore assets Uniquely capable in both site characterisation and asset integrity services site design & operation & construction decommissioning appraisal contracting maintenance Final investment decision Land site characterisation services Geotechnical i
Slide 9: Solutions to support energy transition
Solutions to support energy transition Positioning support for installation of world’s first semi- submersible floating wind park, WindFloat Atlantic in Portugal ▪ In support of Bourbon’s towing, positioning and installation activities ▪ Customised remote positioning system powered by solar and wind
Slide 10: Solutions to support sustainable infrastructure
Solutions to support sustainable infrastructure Innovative monitoring of Amsterdam’s bridges and quay walls ▪ Using Fugro’s innovative TotaLite images, taken from permanently fixed compact cameras to measure deformation ▪ In addition, mobile laser scanning of bridges and quays from the water ▪ Resul
Slide 11: Solutions to support climate change adaptation
Solutions to support climate change adaptation Geo-data acquisition for flood hazard and risk maps in Romania ▪ Fugro will provide digital terrain models, surface models and ortho- imagery and will survey around 13,300 cross sections plus 3,500 bridges and hydrotechnical infrastructures. Projects in
Slide 12: Trends in Fugro’s markets
Trends in Fugro’s markets ▪ Population growth, urbanisation, climate change and technology are the key global developments shaping our world ▪ These result in the following industry trends in Fugro’s -29%markets: energy transition, climate change adaptation, sustainable infrastructure and digitalisa
Slide 13: Path to Profitable Growth strategy
Path to Profitable Growth strategy With three clear strategic objectives in our business model Purpose: Together we create a safe and liveable world Vision: Be the world’s leading Geo-data specialist Unlocking valuable insights from Geo-data to help our clients design, build and operate their assets
Slide 14: Net-zero carbon emissions by 2035
Net-zero carbon Our ambition is to support the transition towards carbon emissions by 2035 neutrality, sustainable infrastructure and climate resilience ▪ 80% of Fugro’s carbon footprint is from vessel CO2 emissions Achieving sustainable impact for ▪ Reduction programs underway, targeting significan
Slide 15: 2. Key investment Highlights
2. Key investment Highlights
Slide 16: Key investment highlights
Key investment highlights 1 World’s leading global Geo-data specialist 2 Critical and leading solutions provider in energy transition growth areas 3 Active in climate change adaptation and sustainable infrastructure growth areas 4 Diversified and long-standing client base with limited concentration
Slide 17: World’s leading global Geo-data specialist
1 World’s leading global Geo-data specialist Widest breadth of services amongst companies active in both site characterisation and asset integrity services Fugro’s competitive position1 Marine market landscape1 Marine Maintained strong market leadership in MSC Maintained strong market leadership in
Slide 18: Critical and leading solutions provider in energy transition growth areas
2 Critical and leading solutions provider in energy transition growth areas Increasingly diversified and substantially grown in non-oil & gas end markets Share of revenue key market segments1,2 Actions to diversify across multiple end markets Oil & Gas Infrastructure ▪ Divested non-core businesses e
Slide 19: Critical and leading solutions provider in energy transition growth areas
2 Critical and leading solutions provider in energy transition growth areas Providing a wide range of services for the development and Assisting clients with the safe, efficient and responsible construction of offshore wind farms development of (still vital) fossil fuels ▪ Strong, global growth in r
Slide 20: Active in climate change adaptation and sustainable infrastructure growth areas
3 Active in climate change adaptation and sustainable infrastructure growth areas Sea floor mapping and other site characterisation services Sustainable development & operation of clients’ infrastructure related to flood and coastal protection ▪ Comprehensive mapping/ hydrography solutions, to prote
Slide 21: Diversified and long-standing client base with limited concentration
4 Diversified and long-standing client base with limited concentration Diversified client base and long-standing client relationships, offering low concentration Revenue by segment Revenue by client type Client concentration 4% 4% 3% 3% 5% 2% 4% 2% 8% 11% 15% IOCs - Majors Oil & Gas 2% Infrastructur
Slide 22: Global player with local presence
5 Global player with local presence Operations in 61 countries with office locations predominantly staffed by local personnel enabling Fugro to directly respond to clients’ needs with local content ▪ Standardisation enables Fugro to deliver the same quality of integrated service packages to clients
Slide 23: Best in class, market agnostic asset base and specialist workforce
6 Best in class, market agnostic asset base coupled with specialist workforce and strong safety culture Highly skilled specialists Modern and flexible assets 25 specialised service vessels 5 uncrewed surface vessels 7 autonomous underwater vehicles > 100 nationalities > 350 R&D engineers LEADERSHIP
Slide 24: Best in class, market agnostic asset base and specialist workforce
6 Best in class, market agnostic asset base coupled with specialist workforce and strong safety culture Same assets, expertise and solutions used to serve clients across market segments and geographies to optimise utilisation and pricing Vessel Illustrative recent projects Fugro Galaxy Oil & Gas Nau
Slide 25: Differentiation through innovation and digitalisation
7 Differentiation through innovation and digitalisation Strategic building blocks accelerates Fugro’s Integrated Digital Solutions Remote Operations & Support Services Analytics & Cloud Automation Services AI Remote QA Analytics & Cloud automation Analytics & Cloud automation Services Services Data
Slide 26: 3. 2020 results
3. 2020 results
Slide 27: Highlights 2020 results
Highlights 2020 results ■ Revenue decline of 12.4% due to Covid-19 and downturn oil & gas market, partly offset by strong growth in offshore wind ■ Continued diversification; in H2, 59% of revenue was from renewables, infrastructure, nautical and other non-oil & gas markets ■ Decisive response to pa
Slide 28: Limited y-o-y EBIT decline with recovery in H2
Limited y-o-y EBIT decline with recovery in H2 Revenue Adjusted EBIT2 (margin) X EUR million -12.4% 1,631 1,386 4.2% 3.5% FY 68 48 2019 2020 2019 2020 - 14.4% 797 834 5.4% 6.5% 707 679 HY 2.9% 45 44 23 0.6% 4 2019 2020 2019 2020 H1 H2 H1 H2 H1 H2 H1 H2 1 growth percentages corrected for currency eff
Slide 29: Diversified revenue with increased exposure to offshore wind
Diversified revenue with increased exposure to offshore wind Share of revenue key market segments1,2 Revenue growth % 20203 5% 7% 8% 7% 9% 4% 12% 7% 11% 16% 14% 18% -23 21% 21% 24% 24% 24% 23% 23% -14 23% 24% 78% 74% 66% 28 57% 54% 52% 48% 45% 41% 4 2014 2015 2016 2017 2018 2019 2020 H1 2020 H2 2020
Slide 30: Results impacted by various specific items
Results impacted by various specific items 2020 2019 x EUR million ▪ Specific items: Adjusted EBIT 48.2 68.0 ▪ restructuring costs (EUR 17.6 million) Specific items (28.4) (42.4) ▪ impairments (EUR 5.9 million) EBIT 19.8 25.6 ▪ certain other costs (EUR 4.9 million) Finance income 2.2 3.9 ▪ increased
Slide 31: Year-on-year working capital improvement
Year-on-year working capital improvement Working capital (as % of revenue) from continuing operations ▪ Strong cash collection, resulting in DRO 15.2% 14.9% 15.1% of 83 400 12.6% 13.0% 11.0% 12.0% 10.9% 300 9.5% ▪ End of June and Dec 2020, working 8.1% 200 capital favourably impacted by around 309 1
Slide 32: Strong free cash flow
Strong free cash flow 2020 Free cash flow 2019 Free cash flow X EUR million, from continued operations X EUR million, from continued operations 50 -81 53 105 47 -3 86 81 -83 58 13 operating changes divestment capex other free cash operating changes capex other free cash CF before working proceeds in
Slide 33: Refinancing completed in December 2020
Refinancing completed in December 2020 ■ After EUR 82 million sub-10 equity issue in Q1, Fugro Maturity profile after refinancing (YE 2020) 450 raised EUR 250 million in new equity in Q4 2020 250 ■ EUR 575 million RCF was refinanced with new EUR 250 100 million RCF and EUR 200 million term loan 59 0
Slide 34: 4. Q1 2021 trading update and outlook
4. Q1 2021 trading update and outlook
Slide 35: Q1 2021: Fugro shows margin resilience despite continued Covid-impact
Q1 2021: Fugro shows margin resilience despite continued Covid-impact Revenue Adjusted EBIT (margin) 12-month backlog -17.2% -0.9%1 - 6.0% - 5.3% 358.4 890.0 875.7 283.8 -14.9 -21.5 Q1 20 Q1 21 Q1 20 Q1 21 Q1 20 Q1 21 ▪ Slightly improved EBIT margin in seasonally weak quarter ▪ Revenue decline of 17
Slide 36: Cost reduction programme, initiated last year, implemented
Cost reduction programme, initiated last year, implemented annualised P&L impact P&L impact savings 2020 2021 (x EUR (x EUR (x EUR million) million) million) ▪ Reduce workforce by up to 10% ~60 ~40 ~20 ▪ Reduce overhead costs ▪ Implement hiring and salary freeze ▪ Cut on executive pay ▪ Minimise use
Slide 37: Outlook 2021
Outlook 2021 ▪ Offshore wind continued growth ▪ Infrastructure growth expected to resume as of 2021 ▪ Oil & gas early signs of recovery, however to certain extent dependent on further development and impact of the pandemic Outlook FY 2021 ▪ revenue growth expected to resume in the course of Q2 ▪ mod
Slide 38: Management agenda
Management agenda Ongoing focus on costs and cash flow generation Complete turnaround of land business Further strengthen operational and commercial excellence and employee engagement Enhance service delivery with new market leading digital and remote solutions Implement ambition to achieve net-zero