Fugro Nv · EURONEXT:FUR
Fugro Nv — Q3 2019 Earnings Presentation
14 slides from Fugro Nv's earnings presentation, 2019
Slide 1: Q3 2019 trading update
Q3 2019 trading update
Slide 2: Q3 2019: Fugro sees continued recovery
Q3 2019: Fugro sees continued recovery • High-single digit EBIT margin vs mid-single in Q3 2018, supported by most regions and business lines. • Despite strong growth offshore wind, limited revenue growth of 1.8% mainly due to decline in land. • Net debt/EBITDA ratio improved to 2.2; expected to fur
Slide 3: Market update summary
Market update summary Infrastructure, renewables, power, nautical Oil & gas Supportive markets, due to population growth, Growth expected in offshore E&P spend Fugro urbanisation, ageing assets, although reduced revenue whilst US shale growth is decelerating. GDP growth in certain geographies. 3 Q3
Slide 4: Recovery continues, driven by marine
Recovery continues, driven by marine Revenue EBIT X EUR million X EUR million, excl. exceptional items +1.8%1 mid-single high-single digit margin digit margin 444 -14 22 8 428 Q3 2018 Marine Land FX effect Q3 2019 Q3 2018 Marine Land Q3 2019 ▪ Marine site characterisation (MSC) again grew strongly;
Slide 5: Europe-Africa: continued strong performance
Europe-Africa: continued strong performance Revenue +2.7% Fugro 41% revenue 0 183 179 Q3 2018 Marine Land FX Q3 2019 Highlights Q3 2019 versus Q3 2018 ▪ Revenue growth MSC, MAI and LAI, in particular in offshore wind site characterisation. ▪ LSC revenue down due to lower activity levels, mainly in U
Slide 6: Americas: margin recovery
Americas: margin recovery Revenue Fugro +25.0% revenue 4 27% 119 92 Q3 2018 Marine Land FX Q3 2019 Highlights Q3 2019 versus Q3 2018 ▪ Revenue growth supported by all business lines. ▪ Higher utilisation of owned vessel fleet vs H1 2019. ▪ Improved margin compared to challenging H1 2019, and Q3 2018
Slide 7: Asia-Pacific: margin turnaround
Asia-Pacific: margin turnaround Revenue 22% Fugro -13.6% revenue 109 2 96 Q3 2018 Marine Land FX Q3 2019 Highlights Q3 2019 versus Q3 2018 ▪ Revenue down mainly in MAI, with more selective tendering and reallocation of assets. ▪ LSC revenue also lower, predominantly caused by local circumstances in
Slide 8: Middle-East & India: margin impacted by revenue decline
Middle-East & India: margin impacted by revenue decline 10% Revenue Fugro -10.6% revenue 49 3 47 Q3 2018 Marine Land FX Q3 2019 Highlights Q3 2019 versus Q3 2018 ▪ MSC and LSC revenue impacted by slowdown in Saudi. ▪ MAI and LAI revenue up. ▪ Margin decline in line with lower revenue. amounts in EUR
Slide 9: Seabed Geosolutions: significantly better results
Seabed Geosolutions: significantly better results Classified as held for sale Revenue Highlights Q3 2019 versus Q3 2018 ▪ Sharp activity increase with improved operational 38 performance. 7 ▪ Solid pipeline of potential projects, with some Q3 2018 Q3 2019 idleness risk in Q4 2019. Backlog ▪ New $50
Slide 10: Improved leverage and positive cash flow
Improved leverage and positive cash flow Net debt/EBITDA 2.2 Positive free cash flow expected to improve towards year-end mainly thanks to margin improvement. Working capital as % of 12 months Days of revenue outstanding: 96 revenue: 16.1%. 10 Q3 2019 trading update
Slide 11: Outlook
Outlook
Slide 12: Strong growth 12-month backlog
Strong growth 12-month backlog X EUR million, from continued operations +9.8%1 920 934 902 856 820 297 367 378 287 348 285 253 270 251 244 163 217 179 199 Europe-Africa 166 Americas 117 103 104 98 106 APAC Middle East & India Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 1 Corrected for currency effect 12
Slide 13: Outlook full year 2019
Outlook full year 2019 from continuing operations ▪ Continued revenue growth ▪ Close to mid-single digit EBIT margin ▪ Positive free cash flow ▪ Capex of around EUR 70 million 13 Q3 2019 trading update
Slide 14: Questions?
peses Questions?