Fugro Nv · EURONEXT:FUR
Fugro Nv — FY2022 Earnings Presentation
25 slides from Fugro Nv's earnings presentation, March 2023
Slide 1: FY 2022 results
FY 2022 results Note that the numbers in this presentation are unaudited; Fugro’s 2022 annual report will be published early March 2023
Slide 2: 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 3: 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 4: 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 5: 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 6: Deep dive land - Geo-risk management framework
Deep dive land - Geo-risk management framework Advanced technologies generating value Uncertainty reduced & value increased Reduce uncertainty Feasibility Preliminary Detailed Design Construction Asset Operation Reduce schedule Planning Design 6 FY 2022 results
Slide 7: Deep dive land - Key client questions
Deep dive land - Key client questions Coastal resilience Does surface flooding present How will a 2m sea-level a risk to infrastructure? rise impact livelihoods? How are sea currents What is the optimal changing the seafloor? seawall design? 7
Slide 8: Deep dive offshore wind - Market outlook
Deep dive offshore wind - Market outlook Strong growth in key regions Offshore wind capex (€bn) Installed capacity (GW) 2030 compared to 2022 74 60 49 210 40 37 30 21 20 142 42 5 37 31 2021 2022 2023 2024 2025 2026 2027 2022 2030 Source : 4cOffshore, excluding China; GW installed capacity incl under
Slide 9: Deep dive offshore wind - Key client questions
Deep dive offshore wind - Key client questions What is the wind revenue potential? How do I install How do I reduce my pile straight unexploded ordnance and at location? risk during installation? Can I use the full site or are there geohazards? What is the optimal foundation design? What is the opti
Slide 10: Deep dive offshore wind - Digital delivery platform
Deep dive offshore wind - Digital delivery platform 10 FY 2022 results
Slide 11: Deep dive offshore wind - Market leader offshore Geo-data
Deep dive offshore wind - Market leader offshore Geo-data Largest range in Geo-data offering and global presence Geophysical survey market1 Digital delivery Metocean Environmental Satellite Airborne Geophysics Geotechnics Laboratory Consulting UXO platforms Fugro Competitor 1 Competitor 2 Geotechnic
Slide 12: Securing capacity to capture market opportunities
Securing capacity to capture market opportunities Expansion of geotechnical fleet with purchase of 2 vessels What ▪ Acquisition of platform supply vessels Topaz Energy and Topaz Endurance ▪ To be repurposed to geotechnical vessels Why ▪ Fugro wants to retain market leading position and geotechnical
Slide 13: Part 2 FY 2022 results
Part 2 FY 2022 results 13 FY 2022 results
Slide 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: Part 3 Outlook
Part 3 Outlook 23 FY 2022 results
Slide 24: 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 25: For inquiries contact Director Investor Relations
For inquiries contact Director Investor Relations Catrien van Buttingha Wichers [email protected] 25