Fugro Nv · EURONEXT:FUR

Fugro Nv — Shareholder Meeting (April 2018)

49 slides from Fugro Nv's shareholder meeting presentation, Apr 26, 2018

  1. Slide 1: Algemene vergadering van aandeelhouders

    Algemene vergadering van aandeelhouders 26 april 2018

  2. Slide 2: Algemene vergadering van aandeelhouders

    Algemene vergadering van aandeelhouders 1. Opening en mededelingen 2. Verslag Raad van Commissarissen over gang van zaken in 2017 3. Verslag Raad van Bestuur over gang van zaken in 2017 4. Implementatie corporate governance code in 2017 5. Vaststelling jaarrekening 2017 6. Decharge 7. Bezoldiging Ra

  3. Slide 3: 1. Opening en mededelingen

    1. Opening en mededelingen Veiligheidsinstructies De nooduitgangen zijn gemarkeerd met groene uithangbordjes  Zodra brandalarm afgaat, direct het hotel verlaten en naar verzamelplek lopen in de tuin direct hierbuiten  Laat uw eigendommen achter  Geen gebruik maken van de lift  Er is vandaag geen

  4. Slide 4: 2. Verslag Raad van Commissarissen over gang van zaken in 2017

    2. Verslag Raad van Commissarissen over gang van zaken in 2017 a) Verslag (ter bespreking) b) Toepassing van het bezoldigingsbeleid in 2017 (ter bespreking) 4 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  5. Slide 5: 3. Verslag Raad van Bestuur over gang van zaken in 2017

    3. Verslag Raad van Bestuur over gang van zaken in 2017 5 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  6. Slide 6: Key take-aways FY 2017

    Key take-aways FY 2017  FY 2017 results in line with expectations  Strong progress strategic agenda:  activities regrouped into Marine and Land division, with uniform business lines  more client centric and efficient organisation  divestment non-core marine construction and installation busines

  7. Slide 7: Financial highlights FY 2017

    Financial highlights FY 2017 Continued revenue decline Q-o-Q backlog growth -13.2%* 12-month backlog -7.3% * +9.1% * 1,776 1,776 1,497 1,497 1,170 867 928 2016 2017 Dec. 2016 Sept. 2017 Dec. 2017 Low single digit EBIT loss Negative cash flow after investments EBIT margin (before exceptional items) 7

  8. Slide 8: Increasing revenue in non-oil and gas markets

    Increasing revenue in non-oil and gas markets 3000 Revenue - % of total Revenue – EUR (x million) 2500 100% 90% Y-o-Y 2000 currency 80% comparable 57 revenue 70% 66 growth 74 1500 2010 60% 78 1757 50% 1172 - 25% 855 40% 1000 30% 24 21 20% 500 16 373 369 360 12 7 318 10% 3 9 7 68 100 6 143 159 108 +

  9. Slide 9: Marine and Land divisions organised in uniform business lines

    Marine and Land divisions organised in uniform business lines…  Since launch of Building on Strength strategy, Fugro has been transformed from group of locally managed operating companies into an integrated organisation  Fugro now managed through 2 main divisions, Marine and Land, both offering in

  10. Slide 10: More client centric and efficient organisation

    … resulting in more client centric and efficient organisation Client centric organisation  Has strengthened Fugro’s capability to effectively provide integrated, standardised solutions across the globe Cost efficient organisation  Standardisation of technologies, methods and services  Further syn

  11. Slide 11: Additional measures to restore profitability mostly implemented

    Additional measures to restore profitability mostly implemented Measures implemented in 2017  Finalisation active involvement in marine construction & installation  cable laying and trenching business divested  early termination of long-term charter agreements for the 2 remaining construction and

  12. Slide 12: Key priorities 2018

    Key priorities 2018 CLIENTS CLIENTS Improve commercial capabilities PEOPLE PEOPLE Increase engagement, training and diversity CASH CASH Cost discipline and positive cash flow EXCELLENCE EXCELLENCE Standardise & digitalise services and work safely INNOVATION INNOVATION Launch commercially successful

  13. Slide 13: Markets Summary

    Markets Summary

  14. Slide 14: Key market developments 2018

    Key market developments 2018  Growth of world economy continues Market forecast annual growth 2018  Gradual but volatile increase in oil price expected Offshore OFS Global growth Brent oil price expenditure  Offshore oilfield services market stabilising -3% +4% +15%  Building & infrastructure in

  15. Slide 15: Global demand for energy growing

    Global demand for energy growing  World economy and population continues to grow, World energy World demand energy andand demand GDPGDP impacting world energy demand 14.3 15 13.6 100 Energy demand: thousands Mtoe GDP: USD trillions 12.9 2.2  Large additional investments needed to meet 11.5 1.9 12

  16. Slide 16: Offshore oil and gas competes with shale

    Offshore oil and gas competes with shale  Large volumes of US shale oil available around US$ 55 / barrel  Shale production can be developed in short time frame  Non-shale offers many lower cost opportunities but with higher upfront cost and longer lead times  Both resources are needed to meet de

  17. Slide 17: Onshore oilfield services growing, offshore stabilising

    Onshore oilfield services growing, offshore stabilising  Onshore OFS expenditure growth driven by Onshore OFS expenditures shale 577 598 600 540 USD billions 452 422 500 395  Offshore OFS expenditure stabilising in 2018 400 351 300  Increase in sanctioned offshore FIDs in 2017 200 and 2018, expec

  18. Slide 18: Growth building & infrastructure market

    Growth building & infrastructure market Building & Infrastructure construction expenditure by region 12 USD trillions 10.1 10 9.3 9.4 8.9 8.8 8.9 0.7 8.4 0.7 0.7 0.7 0.7 0.7 8 0.6 4.4 3.6 3.9 4.1 6 3.2 3.8 3.9 4 2.7 2.7 2.4 2.6 2.7 2.3 2.3 2 1.7 1.8 1.8 1.8 1.9 2.0 2.1 0 2012 2013 2014 2015 2016 201

  19. Slide 19: Growth in offshore wind farms

    Growth in offshore wind farms  Main markets for offshore wind are North-West Europe and China, and are expected to grow  Fugro involved in first North American, Taiwanese and Indian offshore wind farms  Offshore wind farms getting larger in terms of generation capacity, turbines increasing in siz

  20. Slide 20: Financials

    Financials

  21. Slide 21: Another difficult year due to double digit decline in offshore oil and gas

    Another difficult year due to double digit decline in offshore oil and gas Revenue EBIT (margin) Capital employed ROCE ** Cash flow excluding exceptional items excluding exceptional items 75 * Currency comparable * * NOPAT last 12 months (applying domestic weighted average tax rate); - 13.2%* X EUR

  22. Slide 22: Revenue development

    Revenue development X EUR million -13.2%* 1,776 1,541 1,497 - 124 - 15 - 96 - 44 2016 Marine Land Geoscience 2017 corrected* Currency effect 2017 * Corrected for currency effect 22 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  23. Slide 23: EBIT decline in Marine and Geoscience divisions, Land improved

    EBIT decline in Marine and Geoscience divisions, Land improved  EBIT decline Marine division mostly related to pricing pressure excl. exceptional items X EUR million 9 15 operational benefit 9 One-off - 20 2017 6 - 25 operational benefit One-off - 11 2016 - 31 - 32 2016 Marine Land Geoscience 2017

  24. Slide 24: Strong cost reductions, yet insufficient to offset revenue decline

    Strong cost reductions, yet insufficient to offset revenue decline excl. exceptional items X EUR million 9 38 2 - 32 45 50 59 - 235 EBIT Revenue Third party costs Personnel expenses Depreciation Other income FX EBIT FY 2016 + amorisation and expenses FY 2017 24 Algemene Vergadering van Aandeelhouder

  25. Slide 25: Highlights income statement

    Highlights income statement x EUR million 2017 2016  Exceptional items mainly relate to  Onerous contract provision EBIT excluding exceptional items (32.1) 8.5  Restructuring costs EBIT (51.7) (218.7)  Net finance costs mainly relate to Net finance costs (70.7) (70.9)  EUR 48 million of interes

  26. Slide 26: Continued good working capital performance

    Continued good working capital performance Working capital Working capital improvement (x EUR million) YE 2017 YE 2016  Days of revenue outstanding relatively low at 85 PER YE 2017, mainly due to improved Working capital 165 193 billing and cash collection of which inventories 31 22 of which trade

  27. Slide 27: Well within covenants and good liquidity

    Well within covenants and good liquidity Fixed charge cover Debt maturity per December 2017 (X millions, euro equivalents) 3.1 3.1 387 2.9 2.8 2.9 2.8 2.5 2.6 revolving credit facility 2.4 2.3 2.3 2.2 subordinated 1.9 convertible bond 2016 190* ≥ 1.8 covenant subordinated convertible bond 2017 100*

  28. Slide 28: Q1 2018 trading update and outlook

    Q1 2018 trading update and outlook

  29. Slide 29: Key take-aways Q1 2018

    Key take-aways Q1 2018  First year-on-year revenue and backlog growth since 12 quarters  Offshore oil and gas market stabilising  Non-oil and gas markets, mostly building & infrastructure and offshore wind, continue to develop positively  Margin improvement still limited due to oversupply and co

  30. Slide 30: Financial highlights Q1 2018

    Financial highlights Q1 2018  Y-o-y revenue increase of 3.3% on comparable basis  EBIT improved from a high-single digit to mid-single digit negative margin in seasonally weak first quarter  Cash flow from operating activities after investments negative mostly due to increased working capital  N

  31. Slide 31: Backlog: first year-on-year increase after 12 quarters of decline

    Backlog: first year-on-year increase after 12 quarters of decline 12 month backlog Comparable growth* (x EUR million) 1Q17 4Q17 1Q18 Y-on-Y Q-on-Q Site characterisation Marine 240 212 247 12.5% 18.5% Asset integrity Marine 415 333 341 6.5% 4.4% Marine 655 545 588 8.9% 9.9% Site characterisation Land

  32. Slide 32: Outlook 2018

    Outlook 2018 General market developments  stabilising oil and gas environment  continued growth in building & infrastructure and renewables markets Fugro outlook 2018  revenue growth  improved EBIT margin  positive cash flow from operating activities after investments  capex of around EUR 80 m

  33. Slide 33: Q&A Verslag Raad van Bestuur

    Q&A Verslag Raad van Bestuur 33 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  34. Slide 34: 4. Implementatie corporate governance code in 2017

    4. Implementatie corporate governance code in 2017  Ter bespreking  Met ingang van 1 januari 2017 is een herziene versie van de corporate governance code in werking getreden. De belangrijkste aspecten van de corporate governance structuur en de naleving van de Code worden tijdens de vergadering be

  35. Slide 35: 5. Vaststelling jaarrekening 2017

    5. Vaststelling jaarrekening 2017 Ter stemming 35 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  36. Slide 36: Independent auditor's report: introduction and overview

    Introduction and overview Fugro N.V. Ernst & Young Accountants LLP • 2017 consolidated financial Scope statements Independent auditor’s report • True and fair view Annual Report • 2017 company financial statements Other information Scope • Consistency with financial statements • 2017 Management Boar

  37. Slide 37: Audit process and results

    Audit process and results AGM AGM Interaction 2 May 2017 26 April 2018 Regular meetings with management Attended 5 Audit Committee meetings during 2017, 2 in 2018 to date Attended 2 Supervisory Board meetings during 2017, 1 in 2018 to date Planning, Half year Audit Conclusion approach Audit process

  38. Slide 38: 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

  39. Slide 39: 6a. Decharge van de leden van de Raad van Bestuur

    6a. Decharge van de leden van de Raad van Bestuur  Voor het door hen gevoerde beleid Ter stemming 39 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  40. Slide 40: 6b. Decharge van de leden van de Raad van Commissarissen

    6b. Decharge van de leden van de Raad van Commissarissen  Voor het door hen uitgeoefende toezicht Ter stemming 40 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  41. Slide 41: 7. Bezoldiging Raad van Bestuur: eenmalige toekenning restricted aandelen

    7. Bezoldiging Raad van Bestuur: Goedkeuring van eenmalige toekenning van ‘restricted’ aandelen als betaling van bonus voor 2017  Géén bonus op basis van financiële doelstellingen, hoewel doelstelling voor werkkapitaal (gewicht 20%) werd overtroffen  Wel bonus op basis van de behaalde niet-financi

  42. Slide 42: 8. Herbenoeming externe accountant voor controle jaarrekening 2019

    8. Herbenoeming externe accountant voor controle jaarrekening 2019 Op basis van de aanbeveling van auditcommissie en Raad van Bestuur stelt de Raad van Commissarissen voor om Ernst & Young Accountants te herbenoemen als externe accountant belast met de controle van de jaarrekening over het boekjaar

  43. Slide 43: 9. Samenstelling Raad van Bestuur

    9. Samenstelling Raad van Bestuur Herbenoeming Paul Verhagen voor tweede termijn van 4 jaar  CFO  Onder zijn leiderschap zijn de financiële functie en processen in Fugro aanzienlijk versterkt  Hij heeft flink bijgedragen aan het aanpassen van de onderneming aan de zeer uitdagende marktomstandighe

  44. Slide 44: 10. Samenstelling Raad van Commissarissen

    10. Samenstelling Raad van Commissarissen Herbenoeming Antonio Campo voor tweede termijn van 4 jaar  Lid remuneratiecommissie en lid nominatiecommissie  Voordracht mede gebaseerd op senior management ervaring in wereldwijde dienstensector voor olie en gas, in het bijzonder in opkomende markten en

  45. Slide 45: 10. Samenstelling Raad van Commissarissen

    10. Samenstelling Raad van Commissarissen Herbenoeming Douglas Wall voor tweede termijn van 4 jaar  Lid auditcommissie  Voordracht mede gebaseerd op senior management ervaring in wereldwijde dienstensector voor olie en gas, zijn kennis van Fugro en bijdrage gedurende zijn eerste termijn Ter stemmi

  46. Slide 46: 11a. Aanwijzing van de Raad van Bestuur

    11a. Aanwijzing van de Raad van Bestuur  Tot uitgifte van aandelen en/of het verlenen van rechten tot het nemen van aandelen Ter stemming 46 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  47. Slide 47: 11b. Aanwijzing van de Raad van Bestuur

    11b. Aanwijzing van de Raad van Bestuur  Tot het beperken en/of uitsluiten van het voorkeursrecht op aandelen Ter stemming 47 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  48. Slide 48: 12. Machtiging Raad van Bestuur tot inkoop eigen aandelen

    12. Machtiging Raad van Bestuur tot inkoop eigen aandelen Ter stemming 48 Algemene Vergadering van Aandeelhouders, 26 april 2018 www.fugro.com

  49. Slide 49: 13. Rondvraag

    xy BS Uae, gg 308 39 3% SLAG 7 ee AA | acs: dora 43.7 = i 224 : ~ 277 Sco ae 26.7 ra i = 13. Rondvraag

Fugro — Shareholder Meeting (April 2018) on 6ix