Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Presentation (November 2015)
41 slides from Fugro Nv's investor presentation, November 2015
Slide 1: General investor presentation
General investor presentation November 2015
Slide 2: From the deepest oil field to the tallest building
From the deepest oil field to the tallest building…. From the deepest oil field and the largest wind farm to the tallest building, we collect and interpret the data needed to support our clients in the design, construction and maintenance of their infrastructure. Investigation of wind farm sites at
Slide 3: Backdrop
Backdrop As the world’s population and income continue to grow at an increasingly rapid pace, the demand for energy, housing and infrastructure continues to grow…. …and thus the need for intelligence to plan, build, manage and decommission the network of capital- intensive assets, as safely and effi
Slide 4: Profile Fugro
PROFILE FUGRO 4 www.fugro.com
Slide 5: Fugro at a glance
Fugro at a glance World's leading independent provider of vital earth and engineering data, information and advice required for the design, construction and maintenance of large land and marine infrastructure, installations and buildings Market leader offshore geotechnical services offshore su
Slide 6: Market leading positions
Market leading positions Full range of services from data acquisition, processing, interpretation, visualisation, data management to consultancy and advice Unparalleled capabilities based on modern fleet, equipment, in-depth expertise and experience of staff Largest survey and geotechnical fle
Slide 7: Measurement technologies
Measurement technologies Geophysical survey Geotechnical survey 7 www.fugro.com
Slide 8: Solutions during the entire life time of an asset
Solutions during the entire life time of an asset DATA ACQUISITION 8 www.fugro.com
Slide 9: Our business
Our business De-risking investment decisions: We provide vital information that our clients need for the design, construction and maintenance of their infrastructure and buildings Reports & Advice Interpretation Analysis Construction support Data acquisition Repair & Project Maintenance preparation
Slide 10: Our market segments and clients
Our market segments and clients Oil & Gas Building & Infrastructure Revenues by segment Other 10% Building and infra- structure 12% 2014 Oil and gas 78% Power Mining Revenues by client type in oil & gas Super Other 5% major oil Private oil companies companies 17% 30% 2014 Contractor 21% NOCs 27% 10
Slide 11: 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 12: Global reach - local presence
Global reach - local presence Revenue by Geography 42% Europe 13,000 employees 21% Americas 225 offices 23% Asia Pacific 70+ countries 9% Middle East & India 5% Africa 5 regions 12 www.fugro.com
Slide 13: Recent key projects
Recent key projects Site investigation for Fehmarnbelt Link tunnel between Three year extension of construction support services Denmark and Germany contract with McDermott in Middle East Investigation of wind farm sites at Borssele, The Hydrocarbon seep study for BG International in Honduras Nether
Slide 14: Resources (per YE 2014)
Resources (per YE 2014) 42 consultancy & 14 R&D centers 13,537 employees 54 vessels 33 jack-up platforms advisory centres 330 land-based drill rigs 144 remotely operated 100 cone penetration 10 autonomous 43 laboratories testing trucks 17 offshore drill rigs vehicles underwater vehicles 14 www.fugro
Slide 15: Profile Divisions
PROFILE DIVISIONS 15 www.fugro.com
Slide 16: Our divisions
Our divisions Survey Geotechnical Revenues by division Geoscience 12% Geotech 30% Subsea 24% 2014 Survey 34% Subsea Services Geoscience 16 www.fugro.com
Slide 17: Geotechnical division: profile
Geotechnical division: profile Site investigations, soil collection, laboratory testing and geoconsultancy services Providing client with the information necessary for foundations design (drill rigs, production platforms, wind farms, pipelines, large buildings, ports, bridges) Fugro also offers En
Slide 18: 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 19: Subsea Services Division: Profile
Subsea Services Division: Profile Support services related to subsea infrastructure, throughout lifecycle of oil & gas fields Inspection, repair, replacement and maintenance Light construction support and installation Drill support Market position Number 2 subsea service provider in the world
Slide 20: Geoscience Division: Seabed Geosolutions
Geoscience Division: 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 data on reservoir characteristics are used for deve
Slide 21: Market Developments
MARKET DEVELOPMENTS 21 www.fugro.com
Slide 22: Current oil & gas market very challenging
Current oil & gas market (78% of Fugro’s sales) very challenging Increased capital discipline of oil companies due to higher costs & risk profile of recent projects Oil price 130 Exacerbated by strong decline oil price since half 2014 120 Large supplies, mainly due to shale oil and gas, have c
Slide 23: Supportive long term trends oil & gas market
Supportive long term trends oil & gas market Current supply growth will turn to supply fall • Start of drop in shale production in USA • Continued demand growth • Strong fall in offshore capex will start impacting offshore production • Significant plans for abandonment cutting tail end production •
Slide 24: Key to Fugro: offshore (deep water) growth
Key to Fugro: offshore (deep water) growth 20% increase in oil and gas production to 2030, 50% of offshore oil & gas production to 2030 driven almost solely by offshore comes from fields not yet producing Production (kboepd) Production (kboepd) 180,000 150,000 Fields not yet +20% Offshore producing
Slide 25: Infrastructure market: regional differences
Infrastructure market: regional differences Infrastructure and building (12%) Market flat in Western Europe; Middle East and Far East continues to be strong Infrastructure under pressure in oil and gas producing countries (Africa) Significant efforts required to rebuild USA roads & bridges R
Slide 26: Regional overview
Regional overview Europe Significant slow down in the North Sea; back to seasonal volatility High level of offshore windfarm activities Infrastructure spending flat but growing European economies should support Americas increased spending Asia Pacific New exploration areas (Mexico, Central A
Slide 27: Strategy
STRATEGY 27 www.fugro.com
Slide 28: Strategic priorities rebalanced to reflect challenging market environment
Strategic priorities rebalanced to reflect challenging market environment Portfolio changes to reflect clear strategic choices Decision to focus on core geotechnical and survey activities Actively seeking options to reduce stake in Seabed Geosolutions Process underway to find a partner to cr
Slide 29: Financials (per Q3 2015)
FINANCIALS (PER Q3 2015) 29 www.fugro.com
Slide 30: Historical financials
Historical financials X EUR million Revenue Margin strongly impacted Net result by end of ‘oil services 2,572 2.57 2,165 2.42 2,424 2.17 super cycle’ (~2007-2011) 1.86 428 1,858 288 290 difficult start of Seabed Geosolutions joint venture (2013 – 2014) -458 Strong market downturn 2011 2012 201
Slide 31: Improved EBIT margin under continuing challenging market conditions
Improved EBIT margin under continuing challenging market conditions Good progress implementation management agenda Profitability: EBIT margin improved Y-on-Y Cash flow: positive year-to-date Balance sheet: Ratios well within covenants Agreement on key conditions 5-year refinancing Addressi
Slide 32: Financial highlights Q3 2015
Financial highlights Q3 2015 Y-on-Y revenue decline of 13.2% or 21.5% on currency comparable basis, in line with oil and gas market developments Mid-single digit EBIT margin (excluding exceptional items); Y-on-Y improvement mainly due to Seabed Geosolutions Due to deteriorated market outlook,
Slide 33: Cost reduction and performance improvement measures
Cost reduction and performance improvement measures Cost reduction ahead of schedule Headcount : 1,054 net reduction achieved versus YE 2015 target of 950 Vessel fleet: YE 2015 reduction target achieved: Geotechnical: from 18.1 11 18.8to 7 vessels 11.8 Survey: 10-15% reduction (including lea
Slide 34: Balance sheet
Balance sheet All covenants met Financing 2Q15 3Q15 adjusted Agreement with main financiers on key realisation realisation covenant conditions of refinancing of current revolving Fixed charge credit facility: 2.8 2.9 > 2.0 cover commitments from banks for EUR 500 Net debt / 2.0 2.0 < 3.0 million 5
Slide 35: Dividend
Dividend We strive for pay-out ratio of 35% to 55% of net result No dividend for 2014 due to weak results and to strengthen the balance sheet 35 www.fugro.com
Slide 36: Outlook (per Q3 2015)
OUTLOOK (PER Q3 2015) 36 www.fugro.com
Slide 37: 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) 3Q14 HY15 3Q15 Y-on-Y Q-on-Q onshore Geotech 277 312 270 - 7.9% - 12.2% offshore Geotech 186 144 115 - 40.1% - 17.5% Geotech total 463 456 385 - 20.8% - 13.9% Survey 645 566 494 - 25.1% -
Slide 38: Outlook: challenging market continues
Outlook: challenging market continues We expect coming quarters to be difficult Oil & gas clients are indicating further cuts in E&P spend in 2016 No rebalancing or recovery of oil price expected for foreseeable future Infrastructure, hydrographic and offshore wind farm markets continue to pro
Slide 39: Mid-term targets
Mid-term targets These targets were set in Q4 2014 as 2017 targets Outlook unchanged, but timing is dependent on recovery of oil and gas market Low end of the range: market conditions per Q4’14 EBIT Margin High end of the range: improved conditions (compared to Q4’14) Fugro 8 – 12% Geotechnical onsh
Slide 40: 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’ infrastructure and buildings Medium term solid growth in underlying markets driven by Continued gro
Slide 41: Thank you
Courtesy of French Ministry Of Culture and Communication / Immadras THANK YOU For questions or remarks, contact Investor Relations c.vanbuttingha@ fugro.com