Slide 1: Q3 2020 trading update
Q3 2020 trading update 19 October 2020
Slide 2: Q3 2020 trading update highlights
Q3 2020 trading update highlights ■ Improved Q3 adjusted EBIT margin1 despite revenue decline ■ In current turbulent markets, Fugro has been able to continue operations for vast majority of projects ■ Quick response with implementation of comprehensive cost reduction programme ■ Further diversificat
Slide 3: Improved EBIT margin
Improved EBIT margin Revenue 12-month backlog X EUR million Adjusted EBIT2 (margin) - 15.8%1 -3.7%1 9.0% 9.5% 11.2% 441 444 7.4% 934 356 358 349 361 842 40 42 40 -4.6% -6.0% 26 Q1 Q2 Q3 Q1 Q2 Q3 2019 2020 -16 -22 Q3 19 Q3 20 Q1 Q2 Q3 Q1 Q2 Q3 2019 2020 ■ Revenue decline of 15.8% mostly due to Covid-
Slide 4: Diversified revenue with increased exposure to offshore wind
Diversified revenue with increased exposure to offshore wind Share of revenue key market segments1 ■ In Q3 2020, two thirds of group revenue generated in non- oil & gas markets 5% 4% 3% 4% 5% 9% 10% 8% 13% 5% 7% 7% 8% 4% 7% ■ Continued diversification towards markets where Fugro can 12% 16% 7% 11% 1
Slide 5: Cost reduction plan on track to achieve EUR 120 mn annualised savings
Cost reduction plan on track to achieve EUR 120 mn annualised savings annualised P&L impact P&L impact savings YTD 2020 Q4 2020 (x EUR (x EUR million) (x EUR million) million) ▪ Reduce workforce by up to 10% ~60 ▪ Reduce overhead costs ▪ Implement hiring and salary freeze ▪ Cut on executive pay ▪ Mi
Slide 6: Margin improvement in both marine and land despite revenue decline
Margin improvement in both marine and land despite revenue decline Revenue Adjusted EBIT X EUR million X EUR million, excl. specific items - 15.8%1 444 11.2% 9.5% -73 42 40 3 -13 361 Q3 2019 Marine Land FX effect Q3 2020 Q3 2019 Marine Land Q3 2020 ▪ Marine site characterisation revenue impact of oi
Slide 7: Within key covenants
Within key covenants Net debt/EBITDA1 Solvency ≤3.0 latest covenant 33,5% 31,5% 32,8% 31,7% 31,8% 29,3% 28,3% 2,8x 2,8x 2,2x ≥27.5% latest covenant 1,9x 1,7x 1,7x 1,8x 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 Fixed charge cover1 Net debt2 3,6x 3,3x 3,3x 3,3x 666 624 2,7x
Slide 8: Refinancing - rationale
Refinancing - rationale ■ Provide sufficient liquidity to address upcoming 2021 maturities ■ Strengthen balance sheet and improve leverage to more sustainable level in light of current challenging market environment ■ Pro-forma Q3 net leverage1 reduced from 4.2 to 2.0 (pre-IFRS16) or from 4.0 to 2.4
Slide 9: Comprehensive refinancing
Comprehensive refinancing ■ EUR 250 mn equity consisting of Current maturity profile ■ c. EUR 53.3 mn private placement with number of cornerstone investors 575 ■ c. EUR 196.7 mn rights issue ■ Irrevocable commitment by cornerstone investors to take up their rights in an implied amount of c.EUR 59.7
Slide 10: Outlook
Outlook ▪ Offshore wind anticipated to show continued strong growth ▪ Covid-19 may in the short-term result in decline in infrastructure activities; growth expected to resume as of 2021 due to numerous investment programs ▪ Oil & gas market expected to remain volatile into 2021 ▪ Outlook FY 20201 ▪
Slide 11: Mid-term financial guidance
Mid-term financial guidance1 Fugro’s Targets Revenue EBIT margin ROCE2 Free Cash Capex ~€1.6-2.0bn 8-12 % 10-15 % Flow 3 ~€80-110m Excl. Seabed 4 4-7 % Source: Company information. Note: Financials are excluding Seabed, unless stated otherwise. 1. The use of "mid-term“ should not be read as an indic
Slide 12: Q&A
Q&A 12
Slide 13: Disclaimer
Disclaimer Neither this presentation nor any part of it is an offer to sell or a solicitation of any offer to buy any securities issued by Fugro N.V. (the “Company”) in the United States of America, Canada, Japan, Australia or any other jurisdiction. Any securities referred to herein have not been a