Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Day (November 2018)
47 slides from Fugro Nv's investor day presentation, Nov 14, 2018
Slide 1: Fugro Capital Markets Day
Fugro Capital Markets Day Amsterdam, 14 November 2018
Slide 2: About this document
About this document This presentation may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro’s beliefs, expectations, intentions, forecasts, estimates or predictions (and
Slide 3: Safety instructions for this auditorium
Safety instructions for this auditorium Alarm Continuous audible alarm bells signals Evacuate immediately via the nearest useable Fire Exit route Please go to one of the 2 emergency exits Emergency Employees of the Muziekgebouw will escort you via one of the 2 staircases exit routes Do not run and d
Slide 4: Presenters of today
Presenters of today Mark Heine Paul Verhagen Brice Bouffard Chief Executive Chief Financial Director Land Officer Officer Division Terry Stephan Wim Herijgers McConnell Midenet Global Director Global Director Director Seabed Marine Asset Land Asset Geosolutions Integrity Integrity 4
Slide 5: Agenda
Agenda Welcome Catrien van Buttingha 11:30 – 11:35 1. Group strategy Mark Heine 11:35 – 12:20 2. Financial update Paul Verhagen 12:20 – 12:45 Q&A 12:45 – 13:00 Lunch break 3. Differentiate through digitalisation Wim Herijgers & 13:45 – 14:15 Terry McConnell 4. Marine Divisional plan Mark Heine 14:15
Slide 6: Mark Heine, CEO
Mark Heine, CEO 18 years experience with Fugro Dutch nationality ▪ Board of Management Married, 2 children Director Marine Age 45 ▪ Executive committee Director Survey MSc Geodesy ▪ Regional Manager Europe-Africa University of Technology Delft ▪ Managing Director Survey Division ▪ Operations Manager
Slide 7: As geodesist trained to understand planet Earth
As geodesist trained to understand planet Earth 7
Slide 8: The gravity of planet Earth is fundamental
The gravity of planet Earth is fundamental
Slide 9: Gravity determines where water flows
Gravity determines where water flows 9
Slide 10: Gravity forms the geoid
Gravity forms the geoid Source: Politecnico di Milano, Andrea Gatti 10
Slide 11: Earth's subsurface makes it even more complex
Earth’s subsurface makes it even more complex 11
Slide 12: Geo-data influences building assets
Geo-data influences building assets INSTALLATION ACCURACIES Verticality <0.1 degree Horizontal <20 cm Vertical <20 cm 12
Slide 13: Geo-data is the key to design, build & operate any structure
Geo-data is the key to design, build & operate any structure Geophysical data Global positioning data Metocean data Geospatial data Geohazard data Geochemical data Geodynamic data Geotechnical data 13
Slide 14: We are the world's leading Geo-data specialist
We are the world’s leading Geo-data specialist 14
Slide 15: Fugro strategy key takeaways
Fugro strategy key takeaways 1. Fugro’s expertise is essential to create a safe and liveable world 2. We transformed during the downturn and are well positioned 3. We have a path to profitable growth: ▪ Capture the upturn in Energy & Infrastructure ▪ Differentiate by integrated digital solutions ▪ L
Slide 16: 1. Group Strategy
1. Group Strategy A. Changing world B. Fugro’s position C. Strategy 16
Slide 17: Population growth: 2.5B additional people
Population growth 2.5B Additional people Between now and 2050 ENERGY WATER FOOD MINERALS Source: UN 17
Slide 18: Urbanisation: 2.5B people move towards cities
Urbanisation 2.5B People move towards cities Between now and 2050 ROADS RAIL AIRPORTS BUILDINGS TUNNELS BRIDGES HARBOURS Source: UN 18
Slide 19: Technology: 50B additional connected devices
Technology Connectivity Robotics Advanced Analytics 50B Additional connected devices Between now and 2025 DISRUPTING ALL INDUSTRIES AND CHANGING THE WAY WE WORK Source: Statista 2018 19
Slide 20: Climate change: 1.5 ºC temperature rise
Climate change 1.5 ºC Temperature rise1 Between now and 2050 RISING SEALEVEL FLOODING CYCLONES TSUNAMIES DROUGHT 1. Compared to pre-industrial levels; Source: IPCC Fifth assessment report, United Nations 20
Slide 21: We believe in sustainable development
The future can not only be about more, it must also be about better We believe in sustainable development as a driver to help create a safe and liveable world for everyone WHAT WE DO & HOW WE DO IT Contributing to 21
Slide 22: Together we create a safe and liveable world
Our Purpose Together we create a safe and liveable world 22
Slide 23: 1. Group Strategy
1. Group Strategy A. Changing world B. Fugro’s position C. Strategy 23
Slide 24: We have been through a rough period
We have been through a rough period Group financials Group revenue by market Revenue (X EUR billion) Revenue (X EUR million) 2,572 2.6 2.4 YTD Sep 257 1.8 1.5 1.2 309 2014 2015 2016 2017 2018 1,497 EBIT margin1 & ROCE2 (%) 285 Other3 6 352 Infrastructure ROCE 2,006 4 EBIT 2 0 860 O&G -2 -4 2014 2015
Slide 25: We used the downturn to transform under Building on Strength
We used the downturn to transform under our Building on Strength strategy ▪ Divested non-core businesses: Trenching (Global Marine), Multiclient database ✓ Aligned Portfolio ▪ Exited construction & installation business (focusing Subsea activities) ✓ ▪ Partnership or divestment of Seabed Geosolution
Slide 26: We are well positioned
We are well positioned Market leading positions Integrated People with AAA approach deep expertise Strong client relations State-of-the-art technologies & assets Global reach, local presence 26
Slide 27: We are well positioned as market leader in our core businesses
We are well positioned as market leader in our core businesses Market leading positions Division Service Position ▪ Offshore Geotechnics 1 Global ▪ Offshore Geophysics 1 Global ▪ Offshore Positioning 1 Global Marine ▪ Drill Support 3 Global ▪ Light IRM 2 Global ▪ Offshore Survey 1 Global ▪ Metocean
Slide 28: We are well positioned with the best people
We are well positioned with the best people People with deep expertise >55 Years >8,000 >100 Specialised track record Nationalities people >55,000 Hours Collaborating with of Fugro Academy top universities Environmental Compass Equipment Leadership Award Industrial Award Innovation Award 28
Slide 29: We are well positioned with proprietary technology
We are well positioned with proprietary technology State-of-the-art technologies Quickvision Wavescan Buoy In-house ROV Fibre Optic RILA OARS Sensors Subsea Nodule ROAMES GNSS Positioning Detection >400 R&D engineers and scientists Of which ~70% in software & data science 29
Slide 30: We are well positioned as a lean global organisation
We are well positioned as a lean global organisation Global reach, local presence Major office locations Office locations 30
Slide 31: We are well positioned with strong client relationships
We are well positioned with strong client relationships Our clients confirm our position “Technology and Innovation - it’s what EPC differentiates you in the market from Contractor other survey and position providers. Big capability to innovate.” EPC “Quality of services, quality of Company performa
Slide 32: 1. Group Strategy
1. Group Strategy A. Changing world B. Fugro’s position C. Strategy 32
Slide 33: Our strategy is based on 3 objectives
Our strategy is based on 3 objectives 1. Capture the upturn in 2. Differentiate by integrated 3. Leverage core expertise in Energy & Infrastructure digital solutions new growth markets 33
Slide 34: Our key markets are expected to grow in the near-term
Our key markets are expected to grow in the near-term Offshore Oil & Gas Offshore Wind Onshore Energy & Infrastructure OFS1 spend (X USD billion) Market2 (X EUR billion) Market3 (X USD billion) +14% CAGR +8% CAGR 357 +10% CAGR 26 26 801 744 303 296 692 20 21 641 271 598 594 240 241 537 527 558 212 2
Slide 35: Clear signs of offshore Oil & Gas market recovery
We see clear signs of offshore Oil & Gas market recovery Brent oil price Offshore FIDs MSC business recovering Number of FIDs 92 YoY revenue growth (%) USD/bbl 67 Marine Site Characterisation (MSC) 50 120 43 0 100 80 -50 2016 2017 2018 Normalised EBIT 60 FID CAPEX (X USD billion) 176 Marine Site Cha
Slide 36: Continued growth in Offshore Wind market
Continued growth in Offshore Wind market in which we are well positioned Offshore Wind market MSC involvement in OWF2 development (GW installed 2008-2020) Total spend1 (X EUR billion) 30 GW +14% CAGR 9% 26 26 1 GW 20 21 3 GW 27% 73% 91% 78% 16 North America 22% 10 11 Asia1 8 5 Europe 2014 2015 2016
Slide 37: All onshore Energy & Infrastructure segments are growing
All onshore Energy & Infrastructure segments are growing Market growth in onshore Energy & Infrastructure We grew in Power and Building & Infra2 Construction services1 (X EUR billion) +8% CAGR Land Revenue (X EUR million) 801 744 507 476 692 31 Mining 641 15 598 594 109 56 Oil & Gas 537 558 527 78 P
Slide 38: Capture the upturn in Energy and Infrastructure
Capture the upturn in Energy and Infrastructure Markets are growing We are well positioned 38
Slide 39: The right assets to capture the upturn in Energy & Infrastructure
The right assets to capture the upturn in Energy & Infrastructure 30 | VESSELS 112 | ROVs 40 | LABORATORIES Right assets to capture the upturn ▪ State-of-the-art, purpose-built vessels ▪ Youngest fleet in industry ▪ Sophisticated geotechnical laboratories 4,500 | MANTA NODES 28 | JACK UPS 98 | CPT S
Slide 40: Digitalisation is a strategic priority for our clients
Digitalisation is a strategic priority for our clients Strategic priority for our clients Our industries have not digitally matured Digital maturity Tourism Digitalisation – A key enabler for Telco Equinor’s strategy (Equinor) Media Retail Banking Retail Distribution We have placed this at the heart
Slide 41: Our integrated digital solutions are based on 2 key elements
Our integrated digital solutions are based on 2 key elements DIGITAL INTEGRATED DIGITALLY TRANSFORMING FUGRO FUGRO DIGITAL FOUNDATION Transforming the way we work Transforming our relationship with our clients 41
Slide 42: Uniquely positioned to differentiate by integrated digital solutions
Uniquely positioned to differentiate by integrated digital solutions 1. Integrated Geo-data to 2. Proven digital successes 3. Ability to deliver globally unlock valuable insights Major office locations Office locations +0.1° 42
Slide 43: Leverage core expertise in new growth markets
Leverage core expertise in new growth markets 1 2 Our core expertise People Technology Assets Fresh water supply Protect for flooding 3 4 Global trends ▪ Population growth ▪ Urbanisation ▪ Technology ▪ Climate change Map Map the the oceans oceans Secure Secure positioning positioning 43
Slide 44: Strategy implementation supported by 4 key enablers
Strategy implementation supported by 4 key enablers Best people Client focus ▪ Strong focus on people engagement, ▪ Promote integrated solutions (AAA) career development and one Team Fugro ▪ Strengthen key account management ▪ Further strengthen relations with top tech ▪ Extend smart pricing and val
Slide 45: Our path to profitable growth
Our path to profitable growth Purpose Together we create a safe and liveable world Be the world’s leading Geo-data specialist Vision Unlocking valuable insights from Geo-data to help our clients design, build and operate their assets safely and sustainably Strategy Capture the upturn in Differentiat
Slide 46: Fugro mid-term financial outlook
Fugro mid-term financial outlook Targets Free Cash ROCE EBIT margin 2021-2023 Flow1 Group 10 – 15 % 8 – 12 % 4–7% At an expected revenue level of ~EUR 2.0-2.5 billion 1. As % of revenue Note: All figures in this presentation are pre-IFRS 16, unless stated otherwise 46
Slide 47: Fugro strategy key takeaways
Fugro strategy key takeaways 1. Fugro’s expertise is essential to create a safe and liveable world 2. We transformed during the downturn and are well positioned 3. We have a path to profitable growth: ▪ Capture the upturn in Energy & Infrastructure ▪ Differentiate by integrated digital solutions ▪ L