Fugro Nv · EURONEXT:FUR
Fugro Nv — FY2012 Earnings Presentation
47 slides from Fugro Nv's earnings presentation, Mar 8, 2013
Slide 1: Annual figures 2012
Annual figures 2012 P. van Riel A. Jonkman 8 March 2013 www.fugro.com
Slide 2: Results 2012 (continued and discontinued business)
Results 2012 (continued and discontinued business) • Revenue 2,952.7 EUR million (2011: EUR 2,577.8 million), increase 14.5% • Organic +3.9%; Acquisitions +3.9%; Foreign currency effect 6.7% positive • Net result 291.6 EUR million (2011: EUR 287.6 million), increase 1.4% • EBITDA EUR 648.8 million (
Slide 3: Results 2012 (continued business)
Results 2012 (continued business) • Revenue (excl. multi client sales) 2,165.0 EUR million (2011: EUR 1,858.0 million), increase 16.5% • Organic +5.3%; Acquisitions +4.9%; Foreign currency effect 6.3% positive • Net result 232.8 EUR million (2011: EUR 293.9 million), decrease 20.8% • EBITDA EUR 467.
Slide 4: Results 2012, additional information (continued business)
Results 2012, additional information (continued business) • Revenue includes Multi Client Library sales (reported in discontinued operations): (EUR x million) 2012 2011 Reported revenue 2.165 1.858 Multi Client sales 235 156 Total sales incl. Multi Client sales* 2.400 2.014 *Increase in sales: 19.2%
Slide 5: Results 2012, additional information (continued and discontinued business)
Results 2012, additional information (continued and discontinued business) • Special items in results 2012: (EUR x million) Cont. Discont. EMGS 10 - Write down AX-S (22) - Multi client Library (20) - Geo Pacific lease - 17 Cease of depreciation & amortisation assets held for sale - 31 Tax adjustment
Slide 6: Results 2012, additional information (continued business)
Results 2012, additional information (continued business) • Special items that effect EBIT 2012: (EUR x million) Cont. Discont. Write down AX-S (22) - Extra sales amortisation Multi client Library compared to 2011 (73) - Geo Pacific lease - 17 Balance of write-off receivables, release provisions 10
Slide 7: Major developments 2012
Major developments 2012 • Record year for revenue and net profit • Divestment major part of the Geoscience activities (closing 31 January 2013) • Seabed joint venture (establishment 16 February 2013) • Slow market Subsea Services • Four small acquisitions • Good backlog continued business • Strategi
Slide 8: Divestment Geoscience division - Highlights
Divestment Geoscience division - Highlights • Divestment consistent with strategic objectives • Closing divestment of majority of Fugro Geoscience Division to CGG for EUR 1.2 billion on 31 January 2013 (effective date) • Strategic partnerships with CGG • Establishment of Seabed Geosolutions joint ve
Slide 9: Seabed Geosolutions JV
Seabed Geosolutions JV • Fugro has a 60% stake in the JV • Global leader in the fast growing seabed acquisition market. • Service offering with seabed sensor systems: • Ocean Bottom Cable • Ocean Bottom Nodes • Synergies with Fugro Subsea Services activities • Permanent reservoir monitoring technolo
Slide 10: Multi Client library
Multi Client library • Fugro retains ownership of Multi Client library; • CGG has non exclusive sales and marketing rights • Fugro retains right to enter into other non-exclusive agreements or outright sale • Fugro benefits from larger combined sales force and broad client base • All Fugro Multi Cli
Slide 11: Strategy review
Strategy review • Review strategy • Scope of strategy review twofold • All business lines and geographies • Corporate and division strategy • Operating model/role of the centre • Corporate and division strategy • Leverage competitive advantages • Play on Fugro's strengths • Develop growth path and o
Slide 12: Strategy review
Strategy review • Broad involvement • Supervisory Board • Board of Management • Fugro operating company managers • Senior staff functions • Important clients • Shareholders • External advisor • Planning • Market update in August 2013 12 Annual figures 8 March 2013 www.fugro.com
Slide 13: Market developments oil and gas
Market developments oil and gas Oil and gas market (73% of revenue) • Oil price remains stable • Upstream investments outside USA +6% in 2013 • Significant growth of unconventional energy resources • More activities in the construction and field production phases • Recovery after Macondo oil spill •
Slide 14: Market developments infrastructure
Market developments infrastructure Market for infrastructure projects (22% of revenue) • Increased involvement in flood defence systems and in disaster recovery • Decrease of governmental spending • Larger involvement in preparation of international public events: Olympic Games and World Championshi
Slide 15: Market developments other markets (including mining)
Market developments other markets (including mining) Other markets (5% of revenue) • Demand for commodities steady for the long term but short term volatility • Increase in resource nationalism • Several specialist niche markets are strong 15 Annual figures 8 March 2013 www.fugro.com
Slide 16: Geotechnical division
Geotechnical division • Strong performance in traditional markets and in emerging markets • Joint development ‘WaveWalker’ with Van Oord • Water management and offshore deepwater markets continue to grow • Continued growth renewables market in Europe • Involvement in major offshore wind power projec
Slide 17: Geotechnical division
Geotechnical division (EUR x million) 2012 2011* Revenue Onshore Geotechnics 423 357 Revenue Offshore Geotechnics 300 313 Total 723 670 Result from operating activities 99 96 (EBIT) In % of revenue 14% 14% * Comparable figures adjusted for reallocation “unallocated” 17 Annual figures 8 March 2013 ww
Slide 18: Survey division
Survey division • Balanced performance in offshore survey • Survey services in GoM back to normal • Major projects awards in Africa • High demand new survey vessel fleet • Difficult year for Subsea Services but recovery expected in certaing regions • Declined demand for geospatial survey services (a
Slide 19: Survey division
Survey division (EUR x million) 2012 2011* Revenue Offshore Survey 731 632 Revenue Subsea Services 554 440 Revenue Geospatial Services 104 119 Total 1,389 1,191 Result from operating activities 191 202 (EBIT) In % of revenue 14% 17% * Comparable figures adjusted for reallocation “unallocated” 19 Ann
Slide 20: Geoscience division (continued business)
Geoscience division (continued business) • Strong Multi Client sales • Book value library EUR 458 million • OBN (Ocean Bottom Nodes) good workload • Divested operations did well in 2012 • Seabed Geosolutions joint venture off the ground 20 Annual figures 8 March 2013 www.fugro.com
Slide 21: Geoscience Division (continued and discontinued business)
Geoscience Division (continued and discontinued business) (EUR x million) 2012 2011* Revenue Seismic Services 619 507 Revenue Geophysical & 222 210 Geological Services (including Information Services) Total 841 717 Result from operating activities 174 57 (EBIT) In % of revenue 21% 8% * Comparable fi
Slide 22: Vessels
Vessels Delivered in 2012 • Fugro Equator (Survey) • Fugro Equinox - 2nd hand (Survey) • Fugro Supporter - 2nd hand (Survey) Future • Five larger vessels (owned) to be delivered in 2013-2014 • Three smaller survey vessels (owned) 22 Annual figures 8 March 2013 www.fugro.com
Slide 23: Acquisitions in 2012
Acquisitions in 2012 Geotechnical Division • Geoter SAS, France - Annual revenue EUR 2.1 million • Mercatus Interport Kft, Hungary - Annual revenue EUR 0.4 million • EM Drilling Ltd, United Kingdom - Annual revenue EUR 2.6 million Survey Division • EMU Ltd., United Kingdom - Annual revenue EUR 20 mi
Slide 24: Financials
Financials A. Jonkman www.fugro.com
Slide 25: Checks and balances
Checks and balances • Fugro has internal controls and many control systems in place: • Various handbooks and manuals • Monthly financial information, including cash flows • Well defined authorisation matrixes • Internal audits • Peer reviews • External audit • High coverage audit • Mainly big four i
Slide 26: Checks and balances
Checks and balances • No impairment triggers and no material adjustments to valuations • Actions 2013 • Consolidation package upgrade including roll out to regions • Enhance IFRS documentation • Continue to improve checks and balances • Annual review large assets centrally 26 Annual figures 8 March
Slide 27: Effects divestment
Effects divestment • Divested business reported as assets held for sale (EUR x million) 2012 Assets classified as held for sale 1,012 Liabilities classified as held for sale 202 Profit from discontinued operations (2011: 6 million loss) 59 • Analysis profit from discontinued business (EUR x million)
Slide 28: Revenue (continued and discontinued)
Revenue (continued and discontinued) (EUR x million) 2700 2400 2100 1.614 1.403 1800 1.238 1.162 1.018 1500 1200 Revenue 2nd half year 900 Revenue 1st half year 1.339 600 1.175 993 1.035 1.042 300 0 2008 2009 2010 2011 2012 28 Annual figures 8 March 2013 www.fugro.com
Slide 29: Revenue (continued business)
Revenue (continued business) (EUR x million) 2700 2400 235 2100 156 1800 1500 1200 2.165 MC Sales 900 1.858 Revenue 600 300 0 2011 2012 29 Annual figures 8 March 2013 www.fugro.com
Slide 30: Revenue growth (continued and discontinued)
Revenue growth (continued and discontinued) (In %) Organic Acqui- Disposals Exchange Total sitions rate differences 2012 3.9 3.9 - 6.7 14.5 2011 7.6 8.8 (0.2) (3.2) 13.0 2010 6.0 0.4 - 4.7 11.1 2009 (5.6) 1.1 - (0.2) (4.7) 2008 23.4 4.0 - (7.9) 19.5 30 Annual figures 8 March 2013 www.fugro.com
Slide 31: Revenue growth (continued)
Revenue growth (continued) (In %) Organic Acqui- Disposals Exchange Total sitions rate differences 2012 5.3 4.9 - 6.3 16.5 2011* 7.6 8.8 (0.2) (3.2) 13.0 2010* 6.0 0.4 - 4.7 11.1 2009* (5.6) 1.1 - (0.2) (4.7) 2008* 23.4 4.0 - (7.9) 19.5 * Continued and discontinued 31 Annual figures 8 March 2013 www
Slide 32: EBITDA, EBIT and Net result (continued and discontinued)
EBITDA, EBIT and Net result (continued and discontinued) 32 Annual figures 8 March 2013 www.fugro.com
Slide 33: EBITDA, EBIT and Net result (continued)
EBITDA, EBIT and Net result (continued) 600 550 500 450 400 350 300 250 200 2008* 2009* 2010* 2011 2012 EBITDA EBIT Net result * Continued and discontinued 33 Annual figures 8 March 2013 www.fugro.com
Slide 34: Expenses as % of revenue (continued and discontinued business)
Expenses as % of revenue (continued and discontinued business) 45 35 25 15 5 2008 2009 2010 2011 2012 Third party costs Staff costs Other operating expenses 34 Annual figures 8 March 2013 www.fugro.com
Slide 35: Expenses as % of revenue (continued business)
Expenses as % of revenue (continued business) 45 35 25 15 5 2008* 2009* 2010* 2011 2012 Third party costs Staff costs Other operating expenses * Continued and discontinued 35 Annual figures 8 March 2013 www.fugro.com
Slide 36: Profit and Loss account (continued business)
Profit and Loss account (continued business) • Net finance costs (in EUR x million): Net finance costs 2012 2011 (EUR x million) Net interest charge 17.9 7.2 Net change fair value (12.8) (2.5) Rates of exchange 10.1 (12.9) Other (0.1) 0.3 Total costs (gain) 15.1 (8.5) • Tax rate: 2012: 16.9% (2011:
Slide 37: Investments
Investments (EUR x million) 2011 2012 2013* 2014* 2015* Maintenance capex 95 73 100 100 100 Capacity expansion 189 111 150 150 100 Total investments 284 184 250 250 200 Movement in assets under construction (43) 74 (80) (70) (50) Net cash 241 258 170 180 150 * Estimate ** Information restated for co
Slide 38: Statement of financial position (continued)
Statement of financial position (continued) • Value seismic libraries increased to EUR 458 million (2011 – EUR 333 million) • Trade receivables much emphasis Working capital 2012* 2011* Δ (EUR x million) Inventories 479.8 345.7 134.1 Trade and other receivables 837.6 707.6 130.0 Trade & other payabl
Slide 39: Multi client library
Multi client library • Book value EUR 458 million (2011: EUR 333 million) • Split: % book Sales value 2012 2011 Norway 31% 157 98 Australia 47% 35 26 Rest of the world 22% 43 32 100% 235 156 • Amortisation 2012: EUR 123 million (2011: EUR 69 million) • Long confidentiality periods Australia, Norway,
Slide 40: Funds, ratios and covenants
Funds, ratios and covenants • With the divestment inflow of some EUR 700 million • Temporary repayment committed and uncommitted bank loans • USPP continued • Covenants all met 2012 Covenant (Consolidated EBITDA + operating lease) / (consolidated 3.7 >2.5 net interest expense + operating lease) (Con
Slide 41: Outlook
Outlook P. van Riel www.fugro.com
Slide 42: Market prospects
Market prospects Oil & gas • Stable oil price • External reports indicate growth in E&P spending in 2013 by 6% • Continuing depletion, driving large investment • Life of field focus • Shale gas Infrastructure • Dependent on regional developments and government spending • Larger and more complex proj
Slide 43: Projects
Projects Ghana • Three large offshore/onshore geophysical and geotechnical; and metocean contracts for ENI India • Large offshore geotechnical investigation for Reliance Indonesia • Year-long metocean measurement contract for ENI Malaysia • Long term five-year support contract by Murphy Oil Mexico •
Slide 44: Fleet renewal / expansion
Fleet renewal / expansion Name vessel Type of Expected start Owned/ vessel operations Chartered Fugro Brasilis Survey Q2-2013 Owned Fugro Voyager Geotechnical Q2-2013 Owned Fugro Scout Geotechnical Q4-2013 Owned Fugro Aquarius Subsea Q2-2014 Owned Fugro Australis Survey Q3-2014 Owned 44 Annual figur
Slide 45: Backlog at start of the year (continued business)
Backlog at start of the year (continued business) (EUR x million) 1800 1600 67 1400 452 334 79 256 1200 1000 998 Geoscience 808 800 783 Survey 805 717 Geotechnics 600 400 436 476 449 200 343 391 0 2009* 2010* 2011* 2012 2013 *Continued and discontinued operations 45 Annual figures 8 March 2013 www.f
Slide 46: Outlook
Outlook • Increased spending oil & gas industry • Good tender activity • Improving backlog • Seabed joint venture • Survey and geotechnical will follow investments by oil and gas industry • Activity in infrastructure dependent on economic situation • Installation support services will increase • Str
Slide 47: Thank you
Thank you www.fugro.com