Fugro Nv · EURONEXT:FUR
Fugro Nv — Investor Day (November 2018)
32 slides from Fugro Nv's investor day presentation, Nov 14, 2018
Slide 1: 5. Land divisional plan
5. Land divisional plan By Brice Bouffard 1
Slide 2: We have a path to profitable growth in Land
We have a path to profitable growth in Land 1. Capture the upturn in Energy & Infrastructure 2. Differentiate by integrated digital solutions 3. Leverage core expertise in new growth markets 4. Back to ROCE of >10% by 2021–2023 2
Slide 3: Land key financials
Land key financials Land financials Land revenue split (2017) Africa Revenue (X EUR million) MEI 2% 16% Europe 39% YTD Sep 569 507 APAC 19% 476 354 2015 2016 2017 2018 24% Americas Mining EBIT (excl. exceptional items X EUR million) EBIT margin (%) O&G 3% 3% 12% 2% 1% Power 17% 12.6 15.3 68% 6.6 Inf
Slide 4: Land key financials
Land key financials Land financials Evolution of Land revenue split (2016 to 2017) Revenue (X EUR million) Revenue (X EUR million) 507 YTD Sep 476 569 31 Other 507 476 15 354 Mining 109 56 Oil & Gas 2015 2016 2017 2018 78 Power 65 Infrastructure EBIT (excl. exceptional items X EUR million) EBIT marg
Slide 5: Activities across the life cycle of an infrastructure project
Activities across the life cycle of an infrastructure project Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance Geotechnical drilling services Cone penetration testing Geophysical surveys Construction support Laboratory testing and monitoring Geoconsulting Asse
Slide 6: Cone Penetration Testing and Drilling – Hong Kong airport
Cone Penetration Testing and Drilling – Hong Kong airport Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance 6
Slide 7: Cone Penetration Testing and Drilling – Hong Kong airport
Cone Penetration Testing and Drilling – Hong Kong airport Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance Geotechnical drilling and Foundation design & Project details CPT investigation ground risk reduction ▪ Client: HK Airport Authority ▪ Scope: CPT, soil s
Slide 8: Geomonitoring – The Hague tunnel construction
Geomonitoring – The Hague tunnel construction Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance 8
Slide 9: Geomonitoring – The Hague tunnel construction
Geomonitoring – The Hague tunnel construction Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance Real-time monitoring of Early warning to de-risk Project details ground deformations construction operations ▪ Client: Municipality of The Hague ▪ 1.6 km tunnel bori
Slide 10: Road asset integrity – Virginia DOT pavement condition assessment
Road asset integrity – Virginia DOT pavement condition assessment Operation & Site appraisal Design & Contracting Construction Decommissioning Maintenance Roadware pavement Optimised roadway Project details condition assessment maintenance planning ▪ Client: Virginia Department of Transportation, US
Slide 11: We have a path to profitable growth in Land
We have a path to profitable growth in Land 1. Capture the upturn in Energy & Infrastructure 2. Differentiate by integrated digital solutions 3. Leverage core expertise in new growth markets 4. Back to ROCE of >10% by 2021–2023 11
Slide 12: Our key markets are expected to grow in the near-term
Our key markets are expected to grow in the near-term Oil & Gas Power & Electricity Rail, Road & Other2 Infrastructure spend1 (X USD billion) Infrastructure spend1 (X USD billion) Infrastructure spend1 (X USD billion) +8% CAGR +8% CAGR 516 +7% CAGR 192 479 178 445 165 412 88 93 152 383 82 140 358 77
Slide 13: In a fragmented landscape, Fugro is well positioned
In a fragmented landscape, Fugro is well positioned Data acquisition landscape is dominated by Only a few players offer integrated small, local players services globally Integrated offering 9% Fugro €476M 91% Many small, Large local firms consulting & service Single engineering Companies >25 EUR mil
Slide 14: We will enhance our approach to capture this growth
We will enhance our approach to capture this growth 1 2 3 Focus on key asset classes Grow share of large Lead with consulting projects 14
Slide 15: Focus on key asset classes – in the growing Energy & Infrastructure markets
1 Focus on key asset classes – in the growing Energy & Infrastructure markets Roads Tunnels Bridges Rail Airports Mines Infrastructure Transportation & Mining € 600-900 M € 600-800 M € 500-700 M € 250-350 M € 150-250 M € 1,000-1,300 M Nuclear PP Power T&D O&G plants Energy Power & O&G € 350-450 M €
Slide 16: Grow share of large projects
2 Grow share of large projects HS2 High speed rail construction World's longest suspension bridge: Canakkale Bridge Hong Kong airport 3rd runway land reclamation Alaska & Virginia DOT roadway maintenance Hail & Ghasha oil field development Cyclone Marcia Recovery Ergon Energy Mozambique LNG Anadarko
Slide 17: Grow share of large projects – offering integrated solutions, focusing on key clients
2 Grow share of large projects – offering integrated solutions, focusing on key clients Build on our experience with large projects Further integrate our solutions Providing integrated solutions across project life cycle Design & Operation & Site appraisal Construction Decom. HS2 High speed rail con
Slide 18: Lead with consulting – a global practice combined with dedicated commercial teams
3 Lead with consulting – a global practice combined with dedicated commercial teams focusing on key asset classes ▪ Globally coordinate our existing local pockets of expertise Globally coordinated ▪ Create virtual centres of expertise consultancy ▪ Focus on key asset classes Business development ▪ D
Slide 19: We have a path to profitable growth in Land
We have a path to profitable growth in Land 1. Capture the upturn in Energy & Infrastructure 2. Differentiate by integrated digital solutions 3. Leverage core expertise in new growth markets 4. Back to ROCE of >10% by 2021–2023 19
Slide 20: Integrated digital solution for site investigation
Integrated digital solution for site investigation Connected assets assisted by robotics Site Investigation Solution 20
Slide 21: Integrated digital solution for site investigation
Integrated digital solution for site investigation Digitising all information Site Investigation Solution 21
Slide 22: Integrated digital solution for site investigation
Integrated digital solution for site investigation Automated processing leveraging machine learning Site Investigation Solution 22
Slide 23: Integrated digital solution for site investigation
Integrated digital solution for site investigation Deep expertise to unlock valuable insights Site Investigation Solution 23
Slide 24: Integrated digital solution for site investigation
Integrated digital solution for site investigation Decision support and real time insights visualised Site Investigation Solution 24
Slide 25: Integrated digital solution for site investigation
Integrated digital solution for site investigation Site Decision support and real time insights visualised Investigation Solution HIGHER SAFER FASTER MORE SUSTAINABLE QUALITY EFFICIENT 25
Slide 26: We have a path to profitable growth in Land
We have a path to profitable growth in Land 1. Capture the upturn in Energy & Infrastructure 2. Differentiate by integrated digital solutions 3. Leverage core expertise in new growth markets 4. Back to ROCE of >10% by 2021–2023 26
Slide 27: Population growth, urbanisation and climate change drive growing need for water management
Population growth, urbanisation and climate change drive growing need for water management 1 2 Population growth Urbanisation Climate change Fresh water supply Flood protection 27
Slide 28: Water supply – Expand our domain expertise to fulfil growing demand
1 Water supply – Expand our domain expertise to fulfil growing demand Increased demand for fresh water drives Leverage our existing knowledge market growth and project experience ▪ Leverage expertise in: ▪ Hydrogeology ▪ Geophysics ▪ Drilling ▪ Dam and pipeline site appraisal ▪ Build on project expe
Slide 29: Flood protection – Build on existing expertise in dikes and levees
2 Flood protection – Build on existing expertise in dikes and levees Climate change & urbanisation drive Well positioned to protect communities increased need for flood protection against flooding Dikes & levees Stormwater ▪ Leverage expertise in: infrastructure ▪ Meteorological modelling ▪ Hydrolog
Slide 30: The plan - Summary
The plan - Summary 1. Capture the upturn in 2. Differentiate by integrated 3. Leverage core expertise in Energy and Infrastructure digital solutions new growth markets 1. Focus on key asset classes 1. Develop remote, automated 1. Focus on water supply & flood Geo-data acquisition protection 2. Grow
Slide 31: Land division – financial outlook for 2021-2023
Land division – financial outlook for 2021-2023 Revenue (X EUR million) Key drivers for margin improvement to +3-7% CAGR1 achieve low-end of EBIT range YTD Sep Driver EBIT margin impact 569 507 (percentage points) 476 Annually By 2021 2015 2016 2017 2018 2021-2023 Volume +1 +2 Price +1 +2 EBIT (excl
Slide 32: We have a path to profitable growth in Land
We have a path to profitable growth in Land 1. Capture the upturn in Energy & Infrastructure 2. Differentiate by integrated digital solutions 3. Leverage core expertise in new growth markets 4. Back to ROCE of >10% by 2021–2023 32