Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Presentation (February 2023)
47 slides from Fugro Nv's investor presentation, February 2023
Slide 1: Investor slide pack, February 2023
Investor slide pack, February 2023
Slide 2: Contents slide pack
Contents slide pack Part 1 Part 2 Part 3 Part 4 Highlights profile Key strengths Strategy 2022 results Part 5 Outlook Fugro investor presentation February 2023
Slide 3: Part 1 Highlights profile
Part 1 Highlights profile Fugro investor presentation February 2023
Slide 4: Our planet is a complex and dynamic system, making building structures difficult
Our planet is a complex and dynamic system, which makes building and maintaining structures extremely difficult Fugro investor presentation February 2023
Slide 5: Imagine attaching something to that moving, dynamic structure
Imagine attaching something to that moving, dynamic structure You must have a comprehensive understanding of the environment Both above and below the subsurface
Slide 6: Accurate collection and interpretation of Geo-data is essential to mitigate risk
Accurate collection and interpretation of Geo-data is essential to mitigate risk
Slide 7: Unlocking insights from Geo-data
Unlocking insights from Geo-data Using our ‘triple A’ approach (acquisition, analysis, advice), we support our clients in managing their project risks during construction and operation of their assets, both on land and at sea Marine site Marine asset Land site Land asset characterisation integrity c
Slide 8: Geo-risk management framework
Geo-risk management framework Uncertainty reduced & value increased Feasibility planning Preliminary design Detailed design Construction Asset operation Initial site screening Integrated digital site characterisation Design calibration Geo monitoring Asset monitoring Analytics design & advice Fugro
Slide 9: Fugro at a glance
Fugro at a glance ▪ World’s leading Geo-data specialist ▪ Through integrated Acquisition, Analysis and Advice, we unlock insights from Geo-data to help our clients design, construct and operate their assets in a safe, sustainable and efficient manner ▪ Solutions provider in energy transition, climat
Slide 10: Further diversification into structural growth markets
Further diversification into structural growth markets % share of Fugro’s revenue by market (adjusted segmentation per FY 20221) % 2022 revenue growth by market2 39% 37% 9% 45% 54% 52% 57% 66% 74% 42% 24% 30% 21% 7% 11% 14% 7% 63% 21% 24% 24% 23% 23% 32% 16% 29% 4% 6% -11% 13% 7% 8% 10% 8% 5% 5% 4%
Slide 11: Structural trends drive demand for Geo-data
Structural trends drive demand for Geo-data Global developments… …are driving the key trends in Fugro’s markets… …by increasing global spend Offshore wind capex (EUR bn)1 Population growth 41 50 27 35 21 Energy transition 2022 2023 2024 2025 2026 Energy Urbanisation Offshore oil & gas capex (USD bn)
Slide 12: Our ambition is to support the transition in our markets
Our ambition is to support the transition in our markets Energy transition Sustainable infrastructure Climate change adaptation Support net-zero Enable safe Strengthen climate carbon emissions infrastructure resilience Fugro investor presentation February 2023
Slide 13: Fugro's ESG ratings
Fugro’s ESG ratings ▪ Fugro actively engages with several ESG rating agencies that regularly assess our performance ▪ Fugro uses the learnings to enhance transparency and achieve further improvement in these scores MSCI ESG Rating is designed to measure a ESG Risk score of 23.5 as of June 2021 on a
Slide 14: Part 2 Key strengths
Part 2 Key strengths Fugro investor presentation February 2023
Slide 15: World's leading Geo-data specialist
1 World’s leading Geo-data specialist We have the widest breadth of client solutions amongst companies offering Geo-data services Fugro’s market position1 MARINE LAND Hydrography 1 Global Geotechnical investigation 2 Global Geophysical survey 1 Global Rail inspection and advice 2 Europe Geotechnical
Slide 16: Highly skilled and engaged workforce
2 Highly skilled and engaged workforce Our capabilities combined with our culture result in an engaged workforce supporting our clients OUR CAPABILITIES OUR CULTURE ENGAGED We are determined We prepare WORKFORCE Skills Experience to deliver for tomorrow DELIGHTED CUSTOMERS We do We build Specialist
Slide 17: Diversified and committed client base
3 Diversified and committed client base We value long-lasting sustainable relationships with our clients in multiple markets Revenue by segment Revenue by client type Revenue share top 15 clients 3% 4% 2% 6% 2% 14% 2% 5% 11% 1% 1% 1% 1% 1% 39% 11% 1% 28% Internat. energy comp. – majors 1% 1% 2022 13
Slide 18: Innovation led by digitalisation
4 Innovation led by digitalisation Differentiating technologies for client solutions and applications based on robotics, remote operations, analytics and cloud automation Digital Building blocks Mobile, autonomous Remote operations Analytics and cloud Insights and delivery robots and sensors automat
Slide 19: Market-agnostic assets
5 Market-agnostic assets Our Geo-data assets are easily deployable across global markets 27 7 4 autonomous specialised uncrewed underwater service vessels surface vessels vehicles 65 110 250 remotely cone operated penetration geotechnical vehicles testing systems drilling rigs 33 Global network of r
Slide 20: Global player with local presence
6 Global player with local presence We meet our clients’ local Geo-data needs by mobilising global resources quickly and effectively Global reach ✓ Increased cost and operating efficiency, due to presence in 57 countries and leveraging on R&D and innovation ✓ Delivery of same high quality of integra
Slide 21: Part 3 Strategy
Part 3 Strategy Fugro investor presentation February 2023
Slide 22: The world is changing faster than ever, driving need for accurate Geo-data
The world is changing faster than ever before, driving an increasing need for accurate Geo-data Fugro investor presentation February 2023
Slide 23: Population growth, Urbanisation, Technology, Climate change, Engaged society
Population growth Urbanisation Technology Climate change Engaged society 2.0B 2.5B 80B 1.5- 92% Additional people between now and 2050 People move to cities between now and 2050 Additional connected devices between now and 2050 2.0ºC Population expect ESG-inclusive company behaviour Predicted maximu
Slide 24: Structural trends drive demand for Geo-data
Structural trends drive demand for Geo-data Major global developments… …are driving global spend in Fugro’s key growth markets (€bn) Population growth Growth in global 48 2bn additional people by 2050 energy demand 19 22 34 Energy 2021 2022 2023 2024 transition Urbanisation Major infrastructure deve
Slide 25: Recent project: Integrated site investigation for Atlantic Shores Offshore Wind
Recent project- Integrated site investigation for Atlantic Shores Plaatje waarin duidelijk staat/laat Offshore Wind 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 25
Slide 26: Recent project: Digitalisation of power network management for Waipa Networks
Recent project- 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 26 H1 2022
Slide 27: Recent project: Irish coastal resilience strategies
Recent project- Irish coastal resilience strategies Acquire and process high- resolution lidar Geo-data to deliver 3D elevation model to support Office of Public Works on developing coastal resilience strategies 27 H1 2022
Slide 28: Our purpose: Together we create a safe and liveable world
Our purpose: Together we create a safe and liveable world Fugro investor presentation February 2023
Slide 29: Our vision is to be the world's leading Geo-data specialist
Our vision is to be the world’s leading Geo-data specialist Offering integrated client solutions across the project life cycle in 3 key growth markets Oil & Gas Industrial & utilities Flood control Renewables Transportation Water management Property Maritime & ocean science Project Life Cycle Fugro
Slide 30: Our ambition is to support the transition in our markets
Our ambition is to support the transition in our markets Energy transition Sustainable infrastructure Climate change adaptation Support net-zero Enable safe Strengthen climate carbon emissions infrastructure resilience Fugro investor presentation February 2023
Slide 31: On track towards reaching targets in the mid-term
On track towards reaching targets in the mid-term OBJECTIVES KPI MID-TERM TARGET FY 2022 FY 2021 People ▪ Maintain highest health & safety ▪ Lost time injury ▪ <0.5/mn hours (‘23-24) 0.73 0.70 standards frequency ▪ Attract and retain talented employees ▪ Women in senior ▪ >25% (2025) 19% 15% ▪ Creat
Slide 32: Vessel emission reduction roadmap
Vessel emission reduction roadmap Key to reach net-zero carbon emissions by 20351 Fugro investor presentation February 2023 1 Covering all direct and indirect emissions from our operations (scope 1 and scope 2 emissions)
Slide 33: Part 4 2022 results
Part 4 2022 results Fugro investor presentation February 2023
Slide 34: Key messages 2022 results
Key messages 2022 results Strong revenue growth of 14.8% and margin expansion… ▪ EBIT margin 6.1% (2021: 4.3%) ▪ supported by all 4 regions ▪ driven by solid improvement in land ▪ successful in mitigating higher cost levels ▪ Operating cash flow up 50%, offset by higher capex & working capital ▪ 12-
Slide 35: FY 2022: Strong revenue growth and margin expansion
FY 2022: Strong revenue growth and margin expansion Revenue EBITDA2 (margin) EBIT2 (margin) +14.8%1 13.0% 250 13 150 8 12.0% 6.1% 200 12 6 100 4.3% 150 1,766 230 11 4 100 108 1,462 176 50 50 10 63 2 0 9 0 0 2021 2022 2021 2022 2021 2022 Net leverage 12 month backlog Net result +37.5%1 EUR 74 1,425 m
Slide 36: Q4 2022: in line with Q4 2021
Q4 2022: in line with Q4 2021 Revenue (growth)1 EBIT (margin) per quarter2 +8.5%1 10.9% 8.7% 8.1% 7.6% 4.3% 52 3.8% 468 480 453 41 390 378 410 32 29 -0.7% 365 17 17 284 - 5.3% -3 -15 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2021 2022 ▪ Revenue growth of 8.5% supported by high client
Slide 37: FY 2022: Strong revenue growth and margin expansion
FY 2022: Strong revenue growth and margin expansion Revenue 30% X EUR million Marine revenue +14.8%1 2022 Land 1,766 70% 83 87 1,462 134 ▪ Marine revenue up by 12.9%, driven by site characterisation ▪ Utilisation of Fugro’s fleet was unchanged compared to last year at 72% ▪ Land revenue up by 19.7%;
Slide 38: Marine – EBIT up in all regions except Americas
Marine – EBIT up in all regions except Americas Revenue Renewables X EUR million EBIT Infrastructure X EUR million, excl specific items revenue 37% 49% 2022 Water 5.6% +12.9%1 Oil & Gas 5.0% 5% 9% 1.227 69 52 1.038 2021 Europe- Americas Asia Middle FX 2022 2021 Europe- Americas Asia Middle 2022 Afri
Slide 39: Land – significant step-up in profitability
Land – significant step-up in profitability 9% Renewables 3% 13% Revenue EBIT Infrastructure revenue X EUR million, excl specific items 2022 Water X EUR million Oil & Gas 75% +19.7%1 7.2% 539 2.5% 39 424 11 2021 Europe- Americas Asia Middle FX effect 2022 2021 Europe- Americas Asia Middle 2022 Afric
Slide 40: Increased operating cash flow
Increased operating cash flow Cash flow 2021 2022 X EUR million 179 +50% -52 119 -28 -120 -78 40 26 25 24 14 -1 13 18 operating changes capex other CF CF free cash operating changes capex other CF CF free cash CF before working investing operating operating flow CF before working investing operating
Slide 41: Capex - adjusting asset base for further growth
Capex - adjusting asset base for further growth ▪ Step-up in 2022 capex ▪ conversion of Fugro Quest to geotechnical vessel ▪ high number of dry dockings, higher prices and supply chain challenges ▪ market opportunities and investments in Fugro’s uncrewed vessel strategy ▪ 2023 capex guidance of EUR
Slide 42: Positive net result of EUR 74 million
Positive net result of EUR 74 million 2022 2021 x EUR million Adjusted EBIT 107.6 63.0 Specific items in 2022 mainly composed of onerous contract Specific items (14.7) (2.7) charges, restructuring costs and various asset impairments and refinancing costs EBIT 93.0 60.3 Interest expenses lower as low
Slide 43: Lower leverage and sustainability-linked capital structure
Lower leverage and sustainability-linked capital structure Maturity profile (EUR mn) In light of the growth in Fugro’s markets, the revolving credit facility (fully undrawn) company will not propose a dividend over 2022 term loan 400 1 year and will reinvest the generated cash flow in the 2024 conve
Slide 44: Part 5 Outlook
Part 5 Outlook Fugro investor presentation February 2023
Slide 45: Outlook 2023
Outlook 2023 Ongoing growth in all core markets Resulting in ▪ continued revenue growth ▪ further margin expansion ▪ while actively managing any impacts of inflationary and supply chain pressures and tight labour markets ▪ Capex of EUR 200-225 million Fugro plans to update the market on next phase o
Slide 46: 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% 4.3% 6.1% Price Value-based pricing; integrated digital solutions 3.5% 2020 2021 2022 2023-2024 Productivity Disciplined cost management; operational excellence; digital t
Slide 47: For inquiries contact Director Investor Relations
For inquiries contact Director Investor Relations Catrien van Buttingha Wichers [email protected]