Courtesy of French Ministry Of Culture and Communication / Immadras Annual results 2014 Amsterdam, 27 February 2015
General highlights Fugro to focus on its core geotechnical and survey activities Restructuring Seabed Geosolutions in progress and Fugro actively seeking options to reduce its stake Process underway to find a partner to create…
Financial highlights 2HY 2014 Revenue of EUR 1,385 million, + 5.6% at constant currencies (compared to 2HY 2013) EBIT margin, excl. impairment and write-offs, improved from 2.1% in 1HY 2014 to 4.1% in 2HY 2014 9.3% EBIT…
Financial highlights 2014 Revenue of EUR 2,572 million; + 5.9% Y-o-Y at constant currencies EBITDA, excluding impairments and write-offs, of EUR 373 million EBIT margin, excluding impairments & write-offs, of 3.2% compared to…
MARKET DEVELOPMENTS 5 www.fugro.com
Oil and gas market under pressure Oil and gas market (78% of revenue) Rapid decline of oil price in 2HY14 to < 50/barrel (Brent) with recent wavering rebound to 60/barrel E&P spend outlook 2015 by major international oil…
Infrastructure and other markets growing Infrastructure and building (12%) Infrastructure spend generally follows regional GDP growth Growth concentrated in emerging markets, still slow in OECD countries Climate change will…
STRATEGY AND PORTFOLIO 8 www.fugro.com
Leadership in providing essential earth and engineering data Global market leadership in offshore survey and geotechnical markets built on impartial and independent service provision Full range from data acquisition, processing,…
Diversified revenue base 2014 Diversified revenue base Revenues by segment Geoscience Other 12% 10% Geotech Building 30% and infra- structure Subsea 12% 24% 2014 2014 Oil and gas 78% Survey 34% Revenues by geography…
Exposure across full oil and gas field life cycle Final investment decision Exploration Development Field Production Abandon & & appraisal planning development & maintenance decommission Site investigation Survey Construction…
Strategic priorities rebalanced to reflect changing market environment Portfolio Fugro to focus on its core geotechnical and survey activities Restructuring Seabed Geosolutions in progress and Fugro actively seeking options to…
Independence and confidentiality drive market leadership Fugro strategy and leading position based on: Providing impartial and independent advice in best interest of clients Confidentiality of sensitive data Access to all…
COST REDUCTION MEASURES AND PERFORMANCE IMPROVEMENT 14 www.fugro.com
Fugro: cost reduction measures and performance improvement EBIT margin1 Actions Headcount reduction of around 6% for total Fugro (750 employees) mostly implemented by Q1 2015 Group wide salary freeze implemented with exception…
Geotechnical: cost reduction measures and performance improvement EBIT margin1 Actions Fleet reduction of 25% (from 12 to 9 vessels): 1 charter has been terminated in Q3 2014; 2 more charters will be terminated early 2015…
Survey: cost reduction measures and performance improvement EBIT margin1 Actions Geospatial (Aerial mapping) restructuring to asset light model complete: Reduction 5% of survey division personnel Aircraft fleet reduced from 26…
Subsea Services: cost reduction measures and performance improvement EBIT margin1 Actions Downsizing diving activities in Brazil underway Downsizing stand-alone ROV fleet operations in Asia Pacific in Q4 2014 These measures…
Seabed: cost reduction measures and performance improvement EBIT margin1 Actions Leadership changes Project management strengthened significantly with new senior project -38.3 management -42.8 -50.3 -48.2 Overhead cost reduction…
FINANCIALS 20 www.fugro.com
Reasonable growth considering challenging oil and gas market Revenue X EUR million + 6.1% + 6.1% 105 -51 22 2,572 5 143 2,572 34 72 -12 2,424 -22 2,424 2,402 FY13 Geotech Survey Subsea Geoscience Geoscience FY14…
Market decline and performance issues reduce profitability Revenue EBIT (margin) Capital employed ROCE adjusted for impairments and one-off write-offs 2,572 11,0% 2,424 2,639 8.3% 2,231 3.2% 1.3% 2013 2014 2013 2014…
Lower than expected results & deteriorated market outlook lead to non-cash impairments and one-off write-offs (x EUR million) Geotechnical Survey Subsea Geoscience Total Services multi- Seabed other client Goodwill 38 174 2 214…
Geotechnical division: onshore solid, offshore weak with good improvement in H2 Revenue EBIT (margin) Capital employed adjusted for impairments and one-off write-offs 13.9% 780 775 offshore 703 675 323 282 7.1% 98…
Survey division: under-utilisation, price pressure and unfavourable mix in geophysical drives result down Revenue EBIT (margin) Capital employed adjusted for impairments and one-off write-offs 900* 18.5% 632 622 888 12.6%…
Subsea Services division: good performance construction support Revenue EBIT (margin) Capital employed adjusted for impairments and one-off write-offs 3.3% 584 579 608 574 2.3% 19.8 12.9 2013 2014 2013 2014 2013…
Geoscience division: unacceptable performance Seabed with continued losses Revenue EBIT (margin) Capital employed adjusted for impairments and one-off write-offs 301 747 19 248 76 11 26 -105 1 360 -10 117 -55 225 251 Other*…
Increased interest expenses and limited tax benefit from impairments and one-offs Net finance costs Tax expense (x EUR million) 2014 2013 (x EUR million) 2014 2013 Interest income 10 15 Tax before impairment and (36) (51) Interest…
Working capital reduction initiative delivers ahead of plan Working capital 2014 Working capital initiative Encouraging results from working capital (x EUR million) 2014 2013 initiative: Working capital 423 411 DRO from 109 to 103…
Capex slightly above last year Capital expenditure Vessel delivery schedule (x EUR million) 2014 2013 Maintenance capex 93 79 Capex major assets (incl assets 187 174 under construction) Total capex 280 253 Majority of capex is…
Positive cash flow before financing despite disappointing performance 30 -274* 307 -64 43 42 -55 -74 -87 operating CF working capital capex acquisitions other CF from cash flow dividend share CF before before working…
Strong liquidity end of 2014 80% of debt matures 2018+ Full compliance with covenants EUR 620 million undrawn under committed Agreement with lenders on revolving credit facility (RCF) temporary additional headroom adjustment of…
Dividend policy Due to weak results and to strengthen the balance sheet no dividend for 2014 Dividend payment in 2016 (over the year 2015) conditional on covenant compliance at original levels 33 Annual results 2014, 27…
OUTLOOK 34 www.fugro.com
Oil and gas market to remain weak short term Oil price will continue to be under pressure until supply-demand balance is restored Oil service activity will be challenged in short-term as result of reduced E&P spending and capex…
Backlog decline in line with market developments Currency comparable decline by 14.8%: Reported Currency growth comparable Onshore Geotechnical strong growth - 8.6% - 14.8% Offshore Geotechnical and Survey decline in line 1,723.5…
Outlook 2015 We expect the oil and gas market to remain challenging for some period of time In 2014 Fugro started to implement cost reduction measures and accelerates its performance improvement programmes for its oil and gas…
Key take-aways Fugro to focus on its core geotechnical and survey activities Restructuring Seabed Geosolutions in progress and Fugro actively seeking options to reduce its stake 18.1 18.8 11.8 11.4 10.7 Process underway to find…
Courtesy of French Ministry Of Culture and Communication / Immadras THANK YOU
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