Presentation of results 2013 Geoscience activities that were divested per 31 January 2013, are reported as discontinued. Multi-client seismic library was retained by Fugro, but related revenue (EUR 13 million in January 2013, EUR 235…
Financial highlights 1/2 Reported revenue of EUR 2,424 million (2012: EUR 2,165 million) Revenue including multi-client + 1.5% to EUR 2,437 million (2012: EUR 2,400 million) + 6.1% excluding negative currency effects EBITDA 1.7%…
Financial highlights 2/2 Proposed dividend 2013 of EUR 1.50 per share Backlog EUR 1,801 million, up 19% (+26% corrected for currency effects) Solid financial position: net debt/ EBITDA of 1.53 5 www.fugro.com
Revenue analysis including currency effects (x EUR million) Strong growth Survey and contribution Seabed partly offset by lower multi-client sales and currency effects +1.5% 50 -132 120 -110 109 2,437 7 2,400 2012…
Notable effects on 2013 results (x EUR million) EBIT operations amount division Loss Seabed Geosolutions (55.0) Geoscience (100%) Start-up losses trenching (10.0) Subsea Services EBIT special items Sale of technology licenses…
Market developments oil and gas 2013 Oil and gas market (75% of revenue) Oil price remained stable around USD 110 per barrel (Brent) E&P growth around 7% (Barclays) driven by growing oil demand and accelerating decline of…
Market developments other markets 2013 Infrastructure and building ( 22%) Steady overall growth Cyclical, but not at same pace globally Pressure on markets dependent on governmental spending in Western economies Substantial…
STRATEGY IMPLEMENTATION
Updated strategy as announced in September 2013 Growth through Leadership What: Focused portfolio How: Team Fugro Maintain leadership in Offshore Better Geotech & grow selected positions in leverage our scale Onshore Refocus…
Team Fugro: Setting up for growth Strengthen our regional organisation Better leverage Target and win bigger and more complex projects our scale Better serve global clients globally Strengthen and leverage the regional…
2016 mid term financial targets Key strategic performance indicators Revenue Average annual growth 10%, resulting in EUR 3.3 - 3.7 billion in 2016 EBIT margin Around 15% ROCE Around 14% Targets exclude multi-client 14…
Strengthening of regional organisation: progress 1/2 Main elements in place; implementation largely complete by year-end 2014 Regional directors full P&L responsibility within division to develop consistent regional strategies,…
Strengthening of central organisation: progress 2/- During 2013 corporate functions have been set up or strengthened Finance team Strengthening QHSSE team Formation global HR-team and start implementation of single, unified…
Investments required to realise growth strategy Investment commitments under anticipated growth scenario expected of around EUR 425 million annually: EUR 100 million for maintenance EUR 225 million for vessels, including the…
DIVISIONS
Geotechnical division EBIT margin improvement, limited growth (x EUR million) 2013 2012 revenue corrected for exchange rate effects Revenue Onshore 421 423 Around EUR 30 million of revenue booked as revenue in Subsea due to use of…
Survey division Strong growth, reduction in EBIT margin (x EUR million) 2013 2012 Revenue 900 835 Steady growth in Africa, Middle East and Caspian EBIT 166 185 Strong performance global positioning signal business EBIT margin…
Subsea Services division EBIT margin improving (x EUR million) 2013 2012 Restructuring and profit improvement plan Revenue 574 554 defined; implementation started Fugro RUE (Norway) office closed, vessel and EBIT 13 (24)1…
Geoscience division Seabed Geosolutions (x EUR million) 2013 2012 Start-up losses due to low utilisation of OBC / SW Revenue 248 53 activities and one-off operational incident on a project of which Seabed 1) 120 - Revenue (including…
Acquisitions in 2013 (and early 2014) Geotechnical division Advanced Geomechanics, Perth Subsea division DCN Global LLC, Abu Dhabi Geoscience division Seabed Geosolutions (Fugro share 60%), The Netherlands FAZ Research…
FINANCIALS
Effects divestment majority of Geoscience Profit from discontinued operations (x EUR million) 2013 Net gain on sale of majority of Geoscience 205.1 Loss discontinued operations (1.0) Profit from discontinued operations…
EBITDA, EBIT and net result 600 550 500 450 400 350 300 250 200 150 100 2011 2012 2013 EBITDA EBIT Net result continued operations Net result including discontinued operations 29 www.fugro.com
Expenses as % of revenue 45 35 25 15 5 2011 2012 2013 Third party costs Staff costs Other operating expenses 30 www.fugro.com
Net finance costs and tax rate Net finance costs Net finance costs 2013 2012 (x EUR million) Net interest charge 11.9 17.9 Net change fair value (0.5) (12.8) Rates of exchange (4.3) 10.1 Other (0.1) (0.1) Tot costs (gain)…
Committed and required capex Committed and 2013 20141 20151 20161 required to date (x EUR million) Maintenance capex 78.9 100 100 100 Capex major assets 41.1 65 25 25 Capex major assets 133.4 40 25 - under construction…
Working capital Working capital 2013 2012 variance (x EUR million) Inventories 27.6 21.3 6.3 Trade & other receivables 867.5 837.6 29.9 Trade & other payables (483.7) (389.6) (94.1) Net cash 72.1 (129.9) 202.0 Other (70.1)…
Financing Repayment on long term loans from proceeds Geoscience transaction Covenants met, no issues with covenants on continued basis Gearing 31% (2012: 66%) Solvency 56% (2012: 47%) Net debt / EBITDA 1.53 (2012: 2.96)…
Dividend Dividend pay-out 2013 63% 61% 54% of net result from continuing operations 58% 54% 55% 52% 52% 50% (28% of net result including discontinued 54% operations and transaction result) 43% 43% 41% 41% 40% 40% 40% 39%…
Strengthening of financial organisation: progress Good progress with improvement process in finance organisation Implementation Hyperion Financial Management system planned for completion by YE 2014; includes regional support…
OUTLOOK
Backlog at beginning of the year for next 12 months Backlog at the start of 2014 is 19% higher than a year ago (26% corrected for currency rate effects) Most significant increase in Geoscience due to Seabed Geosolutions Excluding…
Market developments going forward - oil and gas market Oil & gas market E&P continues to grow but at slower rate than in the last super cycle Major IOCs are increasing focus on capital discipline and reduced E&P spending, expected…
Market developments going forward - other markets Infrastructure Dependent on regional developments and government spending Continued slow market in Europe, improvement in USA Strong opportunities in emerging markets…
Outlook Fugro Management is comfortable that the market outlook supports the Growth through Leadership strategy and related 2016 targets Key strategic performance indicators Revenue Average annual growth 10%, resulting in EUR 3.3…
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