Slide 1: Full Year 2016: Solid Results in Breakthrough Year for Offshore Wind
Full Year 2016 Solid Results in Breakthrough Year for Offshore Wind 29 March 2017
Slide 2: Representing Sif today
Representing Sif today Jan Bruggenthijs Chief Executive Officer 38 years industry experience on management boards of: ‐ GTI (at present part of Engy) ‐ Stork Energy Service ‐ Hertel Middle East ‐ Eriks Continental Europe west Leon Verweij Chief Financial Officer 30 years industry experience as CFO o
Slide 3: Visual Update on Sif's Strategic Phases
Visual Update on Sif’s Strategic Phases Transformational history Start‐up phase Rapid growth phase (1972‐2000) Redefine the business (2000‐2014) Accelerated growth phase (2014‐present) Listing at Euronext and successful Temporary placement of Shares facility at Flushing Facility upgraded Egeria Capi
Slide 4: Sif at a Glance
Sif at a Glance Leading provider of mission‐critical steel foundations to offshore wind and oil & gas markets Key business description Key facts A leading manufacturer of customised tubular components for offshore With completion of Rotterdam facility a total delivery foundations in the North Se
Slide 5: Operational and Financial Highlights 2016
Solid Results in Breakthrough Year for Offshore Wind Operational and Financial Highlights 2016 1.Healthy business environment (CEO Jan Bruggenthijs) • Business environment has improved for European offshore wind • Sif has benefits from sound market conditions • Solid operational and financial result
Slide 6: Operational and Financial Highlights 2016 (continued)
Solid Results in Breakthrough Year for Offshore Wind Operational and Financial Highlights 2016 3. Offshore wind market continues to show momentum • Orderbook 2017 with 210 Kton well filled • Projects planned for grid connection in 2020 shift to 2021 • Monopiles remain the foundation of preference •
Slide 7: Business Environment has Improved for European Offshore Wind
Business Environment has Improved for European Offshore Wind Healthy offshore wind outlook for the next decade Total number of grid‐connected Total installed grid‐ LCoE below EUR 100/MW2 offshore wind turbines connected capacity FID on 4,948 MW new capacity1 2016 (+39% on 2015) 388 1,588 81% o
Slide 8: 2016 Sif Operational Highlights
2016 Sif Operational Highlights Key offshore wind projects Rampion, Dudgeon Key offshore wind projects Blyth (gravity based),Galloper Completion of oil & gas projects components for Sverdrup and Maersk jackets
Slide 9: 2016 Sif Operational Highlights
2016 Sif Operational Highlights Lost Time Injury Frequency (LTIF) LOI with Sato with 2.83 below Tekko for target of 3 for Japanese market 2016 Successful listing of Sif shares on Amsterdam Stock Exchange 12 May 2016 Investment in new plant at Maasvlakte 2 to increase capacity from 225 Kton to 300 Kt
Slide 10: Maasvlakte 2 Facility Approaching Completion Ahead of Planning
Maasvlakte 2 Facility Approaching Completion Ahead of Planning Start steel construction Complete steel Start coating of MPs Transport assembly line Full production of foundations of the construction and floor Completion and 2 from Roermond to capacity in both assembly and coating of asse
Slide 11: 2016 Sif Financial Highlights
2016 Sif Financial Highlights Contribution + 28.9% to € 129.5 million with production of 191 Kton (150 Kton 2015) Solid financial Normalized EBITDA + 13.1% to € 65.4 million performance Net profit +5% to € 37.4 million EPS + 5% to € 1.47 Working capital at year end € 8.3 million (€ 19.3 mi
Slide 12: Increased Contribution and EBITDA
Increased Contribution and EBITDA Contribution by segment (€m) EBITDA (€m) 400 65,4 70 57.8 130 129,5 60 6,8 321 23,7 2,5 110 45,7 58,6 336 263 50 44,0 55,3 100,5 90 18,9 85,3 83,6 40 70 36,1 24,8 30 50 105,4 80,8 20 30 58,4 48,3 10 10 0 ‐10 FY 2013 FY 2014 FY 2015 FY 2016 FY 2013 FY 2014 FY 2015 FY
Slide 13: With Stable Operating Working Capital Requirement
With Stable Operating Working Capital Requirement Operating working capital (€m) Comments (€m) 150 Healthy working capital dynamics Maintenance capex approx. € 4‐6 m per annum and € 6‐8 m per annum following completion of Maasvlakte 2 plant 100 Expansion program Maasvlakte 2 and Roermond (€ 90
Slide 14: Offshore Wind Market Continues to Show Strong Momentum
Offshore Wind Market Continues to Show Strong Momentum Growth in offshore wind Expected annual European offshore wind installations The world could see as much as 237MW of floating (GW) by grid connection/commissioning date) offshore wind capacity installed by 2020. Date: 26 March 2017 Bloomberg New
Slide 15: ... and With a Strong Outlook for the Longer Term
… and With a Strong Outlook for the Longer Term Continued growth trajectory expected post 2021 (GW) Formulated government ambitions post 2020 1) Target of 41 GW by 2030 OW in heart of UK growth Target of 11 GW by 2025 3,5 3,6 3 projects tendered in new tender system (January 2017) 3,3 3,4 Target of
Slide 16: Order Book For 2018 Priority
Order Book For 2018 Priority Orderbook Comments 300 For 2017 210 kton contracted fills orderbook In 2017 Galloper, Rentel, Beatrice, Hohe See and Norther in 200 production For 2018 73 kton contracted and 25 kton in exclusive negotiations 100 210 Demonstrates volatile character of the project
Slide 17: European Pipeline for Production of MPs and TPs Continues to be Strong
European Pipeline for Production of MPs and TPs Continues to be Strong E s t . grid P ro je c t c o nne c t io n S ize ( M W) C o m m e nt s UK Racebank 2017 580 Dudgeo n 2017 400 Installatio n o f fo undatio ns finished A berdeen B ay 2017 84 Full co nstructio n scheduled to start in late 2017 o r
Slide 18: Updated market demand with latest Europe Wind grid connection estimates
Updated market demand with latest Europe Wind grid connection estimates Expected total monopile capacity2) and demand1) Expected XL monopile capacity2) and demand1) (kt) (kt) 440 440 405 370 370 370 342 363 281 295 301 247 2017 2018 2019 2017 2018 2019 Market demand Sif Sif Maasvlakte 2 addition EEW
Slide 19: Appendices
Appendices Sif
Slide 20: Comparison price for offshore wind to other competitive energy sources
Comparison price for offshore wind to other competitive energy sources 2016 LCOE – Global ranges and baselines Source: Make presentation 25 January 2017 With the most recent offshore wind strike prices in the Netherlands and Denmark, LCOE levels around 55‐80 EUR/MWh expected for final investment dec
Slide 21: Offshore wind industry cost reduction pathways
Offshore wind industry cost reduction pathways Offshore wind LCOE structure in 2016 Key drivers for LCOE reduction Tower Blades 3% Project 1% Reducing cost of capital (44%) 1% Foundation Higher efficiency in maintenance and service (16%) 4% Higher efficiency in transmission of energy (15%) Tur
Slide 22: Consolidated statement of profit or loss
Consolidated statement of profit or loss 2013 2014 2015 2016 Sif Holding NV FY FY FY FY Total tonnage (kt) 166,2 133,5 150,5 191,2 Total Revenue 336,3 262,5 321,3 400,3 ‐ Raw Materials 128,5 99,1 103,6 138,3 ‐ Subcontracted work & other external charges 104,8 61,6 102,6 115,6 ‐ Logistic & other proj
Slide 23: Consolidated statement of financial position
Consolidated statement of financial position 2013 2014 2015 2016 Sif Holding NV FY FY FY FY Assets Intangible fixed assets 0,0 0,0 0,0 0,1 Property, plant and equipment 43,6 44,2 51,7 115,1 Investment property 0,5 0,4 0,4 0,4 Prepayments 0,0 0,0 0,0 0,7 Total non‐current assets 44,0 44,6 52,1 116,3
Slide 24: Consolidated statement of cash flows
Consolidated statement of cash flows 2013 2014 2015 2016 Sif Holding NV FY FY FY FY Profit before tax 35,5 36,6 46,3 47,9 Adjustments for: ‐ Depreciation 7,1 7,4 7,0 8,7 ‐ Net finance cost 1,4 1,8 2,0 2,0 ‐ Changes in net working capital o Inventories (0,1) (0,1) 0,1 0,0 o Work in progress amounts d
Slide 25: Financial ratios
Financial ratio's 2013 2014 2015 2016 Sif Holding NV FY FY FY FY EBITDA ‐ LTM 44,0 45,7 55,3 58,6 Tax (8,9) (8,6) (11,0) (10,8) Change in provisions 0,0 0,0 0,0 0,0 - employee benefits 0,4 (0,3) (0,0) 0,0 - deferred tax (0,3) (0,4) (0,3) (0,5) Capital Expenditure (2,6) (7,9) (14,5) (72,2) add back E
Slide 26: Disclaimer
> Disclaimer Some of the statements contained in this release that are not historical facts are statements of future projections and other forward‐looking statements based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual resu