Slide 1: FY 2020 results
(We2e FY 2020 results WRG!
Slide 2: 1. Introduction
Aer. —— Introduction = BIUGRO MAALI Wi
Slide 3: 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 4: 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 5: 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 6: 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 -29% ▪ These result in the following industry trends in Fugro’s markets: energy transition, climate change adaptation, sustainable infrastructure and digitalis
Slide 7: Energy transition: high growth renewables
Energy transition: high growth renewables ▪ Global drive for renewable energy; expected economic Offshore wind capex (EUR bn)1 recovery in 2021 supports renewables investments +24% 40 30 ▪ Oil majors’ investment budgets increasingly directed 24 18 21 towards renewable sources ▪ In 2022, renewabl
Slide 8: 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 9: Sustainable infrastructure: important growth driver
Sustainable infrastructure: important growth driver Construction Project Momentum Index1 ▪ Urbanisation and population growth drive infrastructure development ▪ Increasing awareness of aging infrastructure risks ▪ Quick recovery of sentiment after initial Covid-19 impact ▪ Governmental support to pl
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: Climate change adaptation requires massive investments
Climate change adaptation requires massive investments ▪ Natural disasters due to extreme weather resulted in 475,000 deaths and USD 2.6 trillion damages in past 2 decades ▪ USD 140-300 billion of annual adaptation investments required in developing countries by 20301 ▪ New Biden administration laun
Slide 12: 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 13: Carbon neutral by 2035
Carbon neutral Our ambition is to support the transition towards carbon by 2035 neutrality, sustainable infrastructure and climate resilience ▪ 80% of Fugro’s carbon footprint comes from vessel CO2 emissions Achieving sustainable impact for ▪ Reduction programs underway, targeting significant lower
Slide 14: 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 15: 2. 2020 results
2. 2020 results
Slide 16: 2020 key messages
2020 key messages ▪ Modest y-o-y EBIT decline with recovery in H2 ▪ Decisive cost measures, growth in offshore wind and improvements in Land drive EBIT improvement in H2 ▪ Actions taken to address underperforming land business are yielding results ▪ Strong working capital performance and cash collec
Slide 17: Strong cost reductions mitigate revenue decline
Strong cost reductions mitigate revenue decline X EUR million, excl. specific items 3 68 20 48 55 -245 132 15 EBIT 2019 revenue other income 3rd party costs personnel other expenses D&A EBIT 2020 decline expenses 17 FY 2020 results
Slide 18: On track to realise EUR 130 mn cost savings
On track to realise EUR 130 mn cost savings, in excess of previous target 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
Slide 19: Double digit revenue decrease, modest FY EBIT decline with recovery in H2
Despite double digit revenue decrease, modest FY EBIT decline with recovery in H2 Revenue Adjusted EBIT excl. specific items - 12.4%1 1,631 -178 4.2% FY 3.5% -25 -33 1,386 13 -42 68 48 2019 Marine Land FX effect 2020 2019 Marine Land 2020 - 14.4%1 835 6.5% 5.4% -122 HY 1 -19 18 -35 679 45 44 H2 2019
Slide 20: Marine: EBIT impact largely mitigated by cost measures
Marine: EBIT impact largely mitigated by strong cost measures and growth in offshore wind Revenue Adjusted EBIT2 (margin) X EUR million -15.2% 1,172 963 5.7% 3.5% FY 67 34 2019 2020 2019 2020 - 20.0% 563 609 499 7.6% 464 5.9% HY 3.6% 47 1.2% 28 20 6 H1 2019 H2 H1 2020 H2 H1 H2 H1 H2 2019 2020 1 grow
Slide 21: Land: turnaround measures start to yield results
Land: turnaround measures start to yield results Revenue Adjusted EBIT2 (margin) X EUR million -5.4% 460 423 3.4% FY 14 0.3% 2 2019 2020 2019 2020 0.6% 234 226 208 215 7.6% HY 1.4% 16 3 -0.8% -0.9% -2 -2 2019 2020 H1 2019 H2 H1 2020 H2 H1 H2 H1 H2 ▪ Margin of 7.6% in H2 supported by turnaround progr
Slide 22: Europe-Africa: y-o-y EBIT decline with improved margin in H2
Europe-Africa: y-o-y EBIT decline with improved margin in H2 Revenue - 11.1%1 ▪ Revenue decline in all business lines, particularly in marine asset integrity, which is most exposed to oil & gas market 682 ▪ FY EBIT margin reduced y-o-y however H2 EBIT margin -11 595 improved to 12.8% compared to 10.
Slide 23: Americas: y-o-y stable margin, land restructuring ongoing
Americas: y-o-y stable margin, land restructuring ongoing Revenue ▪ Revenue down in all business lines due to Covid-related - 12.6%1 postponements/ cancellations and oil & gas downturn. Limited decline in MSC thanks to offshore wind activities 412 -20 ▪ EBIT up from 5.9% loss in H1 to 0.5% in H2, dr
Slide 24: Asia Pacific: ongoing margin recovery
Asia Pacific: ongoing margin recovery Revenue - 10.0%1 ▪ Revenue in MSC declined as result of Covid restrictions and projects being deferred; growth in other business lines 331 ▪ EBIT improved mainly because of better performance in -7 LSC, stringent cost measures and positive transaction 291 result
Slide 25: Middle East & India: challenging H2
Middle East & India: challenging H2 Revenue - 20.4%1 ▪ Significant y-o-y revenue decline in marine due to large O&G exposure. LSC up, particularly in UAE 206 ▪ Y-o-y EBIT decline fully driven by H2 due to very significant -5 marine revenue decline 160 ▪ Land EBIT improved thanks to increased revenue
Slide 26: Seabed Geosolutions: results severely impacted by Covid-19
Seabed Geosolutions: results severely impacted by Covid-19 Revenue ▪ Activity levels severely affected by Covid-19, including sudden termination of S-79 project and delay of project in Brazil -52.7%1 ▪ Work force reduced by around 60%. Restructuring costs amounted to EUR 4.1 million 136 63 ▪ Specifi
Slide 27: 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 28: 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 29: 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 30: 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 million RCF and EUR 200 million term loan 59 200 1
Slide 31: Strongly improved balance sheet ratios
Strongly improved balance sheet ratios Net leverage 4,0x 4,0x 3,7x 3,6x ≤3.25 latest covenant 2,1x according to new covenant definition 1,6x excl impact IFRS-16 4Q19 1Q20 2Q20 3Q20 4Q20 Interest coverage Solvency 41,3% 3,6x 3,3x 3,4x 3,4x 3,2x 29,1% 29,2% 27,0% 26,0% ≥2.5 latest covenant ≥33.3% late
Slide 32: 3. Outlook and management agenda
3. Outlook and management agenda
Slide 33: Solid 12-month backlog
Solid 12-month backlog 8% y-o-y decrease compared to pre-Covid backlog at YE 2019 with growth in Europe-Africa and decline in other regions X EUR million, from continued operations -8.0%1 1,011 902 920 934 856 890 866 845 843 386 297 367 378 318 348 356 340 383 285 272 270 251 243 244 223 237 214 21
Slide 34: Outlook 2021
Outlook 2021 ▪ Covid-19 pandemic is expected to continue to impact societies and thus economic activity in the coming quarters, although Fugro anticipates a return to more normal market conditions in H2 ▪ Offshore wind is anticipated to show continued growth. Growth in infrastructure markets is expe
Slide 35: Management agenda
Management agenda Manage cost base and cash flow Further strengthen operational and commercial excellence Complete turnaround of land business Enhance service delivery with new market leading digital solutions Divest non-core interest in Seabed Geosolutions Accelerate ESG roadmap 35 FY 2020 results
Slide 36: Q&A
Q&A 36