Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Day (November 2018)
22 slides from Fugro Nv's investor day presentation, Nov 14, 2018
Slide 1: Seabed Geosolutions plan
6. Seabed Geosolutions plan By Stephan Midenet 1
Slide 2: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 2
Slide 3: Seabed introduction – key facts
Seabed introduction – key facts History Seabed financials 2013 Formed out of 2 OBS pioneers Revenue (X EUR million) 344 33,000+ km2 of 3D/4D OBS projects executed 9001:2015 ISO Quality Certification 173 74 218 permanent employees YTD Sep 2015 2016 2017 2018 26 countries worked in Oil & Gas customer
Slide 4: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 4
Slide 5: OBS is the next generation seismic, addressing the growing demand for high quality data
OBS is the next generation seismic, addressing the growing demand for high quality data Maturity 1960 Today Ocean Bottom Seismic 2D streamer 3D streamer High end 3D streamer (OBS) Seismic acquisition technology Continued trend towards higher resolution 5
Slide 6: OBS market expected to grow sharply, after a few years of downturn
OBS market expected to grow sharply, after a few years of downturn OBS market drivers OBS market X USD million1 1. Higher data quality combined with +23% CAGR 2,350 2,020 efficiency gains exploration 1,650 new discoveries 1,510 -30% CAGR 2. Focus on Improved Oil Recovery (IOR) 1,240 1,090 1,020 new
Slide 7: We are well positioned to capture the upturn
We are well positioned to capture the upturn Technology ▪ Strong technology portfolio, beyond just the node focus Operational track record and ▪ Pioneer in OBS with over 33,000 km2 of seismic data acquired expertise Covering full ▪ From Shallow to Ultra Deep Water, with adapted deployment and spectr
Slide 8: Consolidation happening in a growing market, with potential benefits for all players
Consolidation happening in a growing market, with potential benefits for all players Market leader. Global provider of Market entry strategy – Description Pioneer within the OBS industry Seismic nodal technology No proprietary technology Pure-play OBS ✓ ✓ ~10,000 nodes ~ 35,000 nodes ~ 30,000 node
Slide 9: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 9
Slide 10: Efficiency gain was the key driver for 3D streamer historic market growth: OBS is next
Efficiency gain was the key driver for 3D streamer historic market growth: OBS is next Efficiency improved through technology Leading to a significant cost reduction And subsequent market growth development 3D streamer market 5x more … 80% cost streamers x 2.6 reduction per vessel… 1 2 1 2 1 2 Progr
Slide 11: Efficiency gain was the key driver for 3D streamer historic market growth: OBS is next
Efficiency gain was the key driver for 3D streamer historic market growth: OBS is next Efficiency improved through technology Leading to a significant cost reduction And subsequent market growth development 3D streamer market 5x more … 80% cost streamers x 2.6 reduction per vessel… 1 2 1 2 1 2 Progr
Slide 12: Our innovation efforts position us at the forefront of this efficiency race
Our innovation efforts position us at the forefront of this efficiency race Delivering sustainably lower cost per km2 by increasing productivity and reducing cost Receiver technology development Source technology development developments Decrease costs Cost savings Nodes Standardisation Modular sour
Slide 13: Manta nodes provide one efficient technology to address the full OBS market
Manta® nodes provide one efficient technology to address the full OBS market Manta® node system Dense inline geometry NOAW deployment Transition zone and shallow water Dense inline or sparse geometry NOAW or ROV deployment Intermediate water Sparse geometry ROV deployment Deep water 13
Slide 14: We continue to innovate and partner with key customers to develop the next paradigm
We continue to innovate and partner with key customers to develop the next paradigm in operational OBS efficiency SpiceRack®: preparing a sustainable future through innovative award winning technologies Best Exploration Innovation in Technology Technologies Equipment In collaboration with 14
Slide 15: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 15
Slide 16: We are investing in more efficient Manta nodes and systems, gradually adding capacity
We are investing in more efficient Manta nodes and systems, gradually adding capacity 2015 Market split Shallow Water • Cables Nodes technologies 44% 56% Cables • Over 20,000 Intermediate receivers available Water Seabed revenue split Nodes 22% • CASE Abyss node Deep Water • 1 m x 1 m / 165 kg • 1,2
Slide 17: We are investing in more efficient Manta nodes and systems, gradually adding capacity
We are investing in more efficient Manta nodes and systems, gradually adding capacity Today Market split Shallow Water Cables • Cables technologies 14% • 10,000 receivers available 86% Intermediate • Manta® nodes Nodes Water • 35 cm x 35 cm/20.5 kg Seabed revenue split • 4,500 nodes available Cables
Slide 18: We are investing in more efficient Manta nodes and systems, gradually adding capacity
We are investing in more efficient Manta nodes and systems, gradually adding capacity 2015 Today 2020 Market split Market split Shallow Water Cables 14% Nodes 44% 56% Cables 86% Intermediate Nodes Water Seabed revenue split Seabed revenue split Cables 10% Nodes 22% Deep Water 78% 90% Cables Nodes 18
Slide 19: We have designed and operate a cost effective, modular and asset-light model
We have designed and operate a cost effective, modular and asset-light model Modular approach ▪ Pioneer in cost effective, modular and asset-light model: ▪ Covering both ROV and NOAW modes ▪ Optimized for Manta but compatible with other nodes ▪ Delivering: ▪ Flexibility through the use of vessels of
Slide 20: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 20
Slide 21: Seabed Geosolutions – financial outlook for 2021-2023
Seabed Geosolutions – financial outlook for 2021-2023 Revenue (X EUR million) Key drivers for margin improvement to achieve low-end of EBIT range >20% CAGR1 344 Driver EBIT margin impact (percentage points) 173 YTD Sep Annually By 2021 74 2015 2016 2017 2018 2021-2023 Volume +3-4 +9-10 Price +2-3 +7
Slide 22: We have a path to profitable growth in Seabed Geosolutions
We have a path to profitable growth in Seabed Geosolutions 1. Capture the upturn in Offshore Oil & Gas 2. Focus on value-driven innovation 3. Gradually add capacity 4. Back to ROCE >10% 22