Fugro Nv · EURONEXT:FUR
Fugro Nv — Shareholder Meeting (April 2020)
47 slides from Fugro Nv's shareholder meeting presentation, Apr 30, 2020
Slide 1: Algemene vergadering van aandeelhouders 30 april 2020
Algemene vergadering van aandeelhouders 30 april 2020
Slide 2: Agenda
Agenda 1 Opening en mededelingen 2 Verslag Raad van Commissarissen over gang van zaken in 2019 3 Verslag Raad van Bestuur over gang van zaken in 2019 4 Vaststelling jaarrekening 2019 5 Decharge Raad van Bestuur en Raad van Commissarissen 6 Bezoldingsbeleid 7 Samenstelling Raad van Commissarissen 8 H
Slide 3: Covid-19 pandemie
Covid-19 pandemie • Eerste prioriteit is het minimaliseren van gezondheidsrisico’s voor medewerkers, klanten en andere relaties • We nemen de juiste maatregelen om dienst- verlening zeker te stellen • Significante impact op resultaten van Fugro 3 AvA 2020
Slide 4: 2. Verslag Raad van Commissarissen over 2019
2. Verslag Raad van Commissarissen over 2019 a Verslag (ter bespreking) b Bezoldigingsverslag (adviserende stem)
Slide 5: 3. Verslag Raad van Bestuur over 2019
3. Verslag Raad van Bestuur over 2019 ter bespreking
Slide 6: 3.a Profiel en strategie
3. a Profiel en strategie
Slide 7: Together we create a safe and liveable world
Together we create a safe and liveable world 7 AvA 2020
Slide 8: Unlocking insights from Geo-data
Unlocking insights from Geo-data With our ‘triple A’ approach we help our clients to design, build and operate their assets safely and sustainably Acquisition Analysis Advice 8 AvA AvA 2020 2020
Slide 9: Fugro's key markets and services
Fugro’s key markets and services 4% Oil & Gas 7% Infrastructure Renewables 14% Nautical 2019 Other €1,631m 52% 23% 6% Marine site characterisation Marine asset integrity 13% Land site characterisation Land asset integrity 22% 42% 2019 40% 20% 2019 €1,631m €1,631m 32% 25% Major office locations Europ
Slide 10: World's leading Geo-data specialist
World’s leading Geo-data specialist Widest breadth of services amongst companies active in both site characterisation and asset integrity services Fugro’s competitive position Marine Seep surveys 1 Global Geophysical survey 1 Global Geotechnical investigation 1 Global Geoconsulting 1 Global Monitori
Slide 11: Highly skilled specialists with strong safety culture
Highly skilled specialists with strong safety culture Fugro is one of the largest employers of Geo-specialists in the world > 400 R&D engineers Awards > 550,000 hours of >3,000 Fugro Academy training PhD/Master degree LEADERSHIP Collaborating with > 100 nationalities Environmental Compass Equipment
Slide 12: Diversified client base and long-standing client relationships
Diversified client base and long-standing client relationships Fugro services multiple markets and type of clients Revenue by segment Revenue by client type Client concentration 4% 3% 3% 3% 4% 3% 7% 5% 9% 5% 19% IOCs - Majors 2% IOCs - Independent 2% Oil & Gas 6% 2% Top 15 client 14% Infrastructure
Slide 13: State-of-the-art asset base
State-of-the-art asset base Modern fleet that is easily redeployable across markets providing operations flexibility 25 3 6 specialised uncrewed autonomous service surface underwater vessels vessels vehicles 82 117 remotely cone 194 penetration geotechnical operated testing drilling rigs vehicles sy
Slide 14: Innovation and digitalisation
Innovation and digitalisation Integrated digital solutions to enhance our client’s insights fro Geo-data State-of-the-art technologies Fugro’s Digital Foundation ergency hange alerts detection redicti e i ulations aintenance itigate is based geohazards inspection esign ife opti isation e tension >40
Slide 15: Continuously rethinking what we do and how we do it
Continuously rethinking what we do and how we do it ustainability is e bedded in Fugro’s business Important role to play in the ongoing Increase safety while limiting Mapping to mitigate climate change Sustainable cities transition to renewable energy environmental impact with innovation impact Grow
Slide 16: Path to Profitable Growth strategy framework
Path to Profitable Growth strategy framework 16 AvA 2020
Slide 17: Progress divestment of non-core assets
Progress divestment of non-core assets ▪ In ece ber 2019, Fugro acquired GG’s 40% shareholding and ter inated JV Seabed Geosolutions agreement, in exchange for EUR 31.3 million, which will facilitate divestment ▪ Multiple parties have shown interest (100% stake) ▪ Business classified as held for sal
Slide 18: Highlights 2019
Highlights 2019 ▪ Second year of recovery with continued revenue growth and margin expansion ▪ BIT argin of Fugro’s core business i pro ed to 4.2% fro 1.9% last year; driven by substantially better performance of marine ▪ Revenue growth of 2.7% on top of very strong increase last year, due to select
Slide 19: 3.b 2019 financials
3. b 2019 financials
Slide 20: 2019 key financials: continued margin improvement
2019 key financials: continued margin improvement Improved EBIT margin Free cash flow turns positive Healthy 12-month backlog adjusted +9.9%1 4,2% 1.011 58 902 1,9% 2018 2019 -21 2018 2019 2018 2019 ▪ Margin expansion driven by marine, land business lagging ▪ MSC continues strong performance; MAI tu
Slide 21: Revenue and EBIT expansion driven by marine
Revenue and EBIT expansion driven by marine Revenue EBIT X EUR million X EUR million, adjusted +2.7%1 1,631 4.2% -9 36 47 - 18 1.9% 60 68 1,553 30 2018 Marine Land FX effect 2019 2018 Marine Land 2019 ▪ Marine site characterisation (MSC) double digit revenue growth; continued margin expansion. ▪ Mar
Slide 22: Mixed regional performance
Mixed regional performance Revenue EBIT X EUR million X EUR million, adjusted +2.7%1 4.2% -6 20 1,631 -12 -43 60 36 36 -7 1.9% 68 32 30 1,553 2018 Europe Ameri- APAC Middle FX effect 2019 2018 Europe Americas APAC Middle 2019 - Africa cas East - Africa East & & India India 1. Corrected for currency
Slide 23: Results impacted by specific items
Results impacted by specific items Pro forma 2019 2018 x EUR million 20191 Adjusted EBIT 68.0 64.3 29.5 ▪ Increase in interest expense mainly relates to Specific items (42.4) (42.4) (5.7) IFRS16 impact, and higher net debt EBIT 25.6 21.9 23.8 ▪ Decrease income tax mainly due to Finance income 3.9 3.
Slide 24: Positive free cash flow
Positive free cash flow 2019 Cash flow from operations after investing X EUR million, from continued operations 47 -70 57 58 24 operating CF before changes changes working capital investing CF IFRS 16 free cash flow working capital excl IFRS 16 2019 2019 24 AvA 2020
Slide 25: 3.c Q1 2020 trading update and outlook
3. c Q1 2020 trading update and outlook
Slide 26: Unprecedented deterioration of market environment
Unprecedented deterioration of market environment Pandemic Related oil price collapse ▪ IMF expects deep contraction in global economy in 2020, recovery in 2021 ▪ riority 1: protect the health and safety of Fugro’s e ployees, partners and clients ▪ Priority 2: ensure business continuity in collabora
Slide 27: Q1 2020 key financials
Q1 2020 key financials Revenue EBIT margin Free cash flow 12-month backlog +0.8%1 adjusted +0.0%1 356 358 -4,6% -18 -6,0% -22 920 890 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 ▪ Revenue in line with Q1 2019, with growth in Asia Pacific and decline in the other regions, especially in Europe-Afr
Slide 28: Cost and capex reduction programme
Cost and capex reduction programme Immediate action to mitigate impact of sudden & unprecedented market deterioration ▪ minimise use of short-term charters ▪ implement hiring and salary freeze ▪ reduce workforce by up to10% ▪ reduce overhead costs ▪ cut on executive pay ▪ further optimise service of
Slide 29: Oil & gas: demand and price fall result in spending cuts
Oil & gas: demand and price fall result in spending cuts Global oil and gas market Growth drivers ▪ 21 of 33 offshore FIDs planned for 2020 have already ▪ Brent oil has fallen to $20-25. Only major production cuts can Final Investment been sanctioned, leaving doubts for sanctioning rebalance market
Slide 30: Offshore wind: no cancellations, some projects delayed
Offshore wind: no cancellations, some projects delayed Global offshore wind market Growth drivers ▪ Some projects face delays due to Covid-19 ▪ Negative GDP outlook 2020 will impact global energy ▪ Strengthening USD (components prices in USD) impacts project IRR demand Economic growth ▪ Strong econo
Slide 31: Continued growth in infrastructure markets
Continued growth in infrastructure markets Global infrastructure market Growth drivers ▪ Expenditure for construction services continues to grow in ▪ Negative GDP growth 2020. Unclear impact infra medium/longer term Economic development growth ▪ Economic slowdown possibly not yet fully absorbed in l
Slide 32: Within covenants; reassessing refinancing options
Within covenants; reassessing refinancing options Net debt / EBITDA Maturity profile X EUR million equivalents ≤3.0 covenant 575 2,8x 2,8x 2,5x 2,5x 2,5x 2,2x 2,2x 1,9x 1,7x 190 100 0 190 0 0 0 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2020 May Oct 2022 2023 2024 2025 2021 2021 Net debt Refinanci
Slide 33: Outlook 2020
Outlook 2020 ▪ Covid-19 pandemic expected to have considerable impact on Q2. ▪ At this stage, it is impossible to forecast magnitude and duration of impact. Several scenarios have been worked out; will continue to monitor the situation closely, and decide on additional measures when needed. ▪ Given
Slide 34: 4. Vaststelling jaarrekening 2019
4. Vaststelling jaarrekening 2019 ter stemming
Slide 35: Independent auditor's introduction and overview
Introduction and overview Fugro N.V. Ernst & Young Accountants LLP • 2019 consolidated financial statements Scope Independent auditor’s Annual Report • 2019 company financial statements • True and fair view report Other information Scope • 2019 Management Board report • Consistency with financial st
Slide 36: Audit process and results
Audit process and results AGM AGM Interaction 26 April 2019 30 April 2020 Regular meetings with management Attended 5 Audit Committee meetings during 2019, 2 in 2020 to date Attended 2 Supervisory Board meetings during 2019, 1 in 2020 to date Planning, approach Half year Audit Conclusion Audit proce
Slide 37: Conclusions independent auditor's report
Conclusions independent auditor’s report Conclusions financial statements • True and fair view consolidated financial statements • True and fair view company financial statements Conclusions other information • Consistent with the financial statements and no material misstatements • Contains the inf
Slide 38: 5. Decharge
5. Decharge a Raad van Bestuur (ter stemming) b Raad van Commissarissen (ter stemming)
Slide 39: 6. Vaststelling bezoldingsbeleid
6. Vaststelling bezoldingsbeleid a Raad van Bestuur (ter stemming) b Raad van Commissarissen (ter stemming)
Slide 40: 7. Samenstelling Raad van Commissarissen
7. Samenstelling Raad van Commissarissen ter stemming
Slide 41: 7a Herbenoeming Harrie Noy
7a Herbenoeming Harrie Noy ▪ Voor een periode van 2 jaar, om reden van continuïteit. ▪ Voordracht gebaseerd op waardevolle bijdrage tijdens afgelopen 8 jaar, als voorzitter van de RvC en nominatiecommissie, en lid van remuneratiecommissie. ▪ Voormalig CEO van grote internationaal opererende ondernem
Slide 42: 7b Benoeming Ron Mobed
7b Benoeming Ron Mobed ▪ Voordracht gebaseerd op zijn uitgebreide management- en toezichthoudende ervaring op bestuursniveau bij grote ondernemingen, oa als voormalig CEO van Elsevier. ▪ Ingenieursachtergrond en kennis van IT, technologie en digitale transformatie sluiten zeer goed aan bij Fugro, wa
Slide 43: 8. Herbenoeming accountant voor controle jaarrekening
8. Herbenoeming accountant voor controle jaarrekening 2021 ter stemming
Slide 44: 9. Aanwijzing Raad van Bestuur
9. Aanwijzing Raad van Bestuur a tot toekenning of uitgifte van aandelen tot 10% voor algemene doeleinden (ter stemming) b tot beperking of uitsluiting van het voorkeursrecht op aandelen in verband met 9a (ter stemming) c toekenning of uitgifte van aandelen tot 10% ivm fusies, overnames en/of een st
Slide 45: 10. Machtiging Raad van Bestuur tot inkoop eigen aandelen
10.Machting Raad van Bestuur tot inkoop eigen aandelen ter stemming
Slide 46: 11. Rondvraag
11.Rondvraag
Slide 47: Unlocking Insights from Geo-data
Unlocking Insights from Geo-data 47 AvA 2020