Presentation first quarter Goodtech ASA, 14 May 2014

Transcription

1 Presentation first quarter 2014 Goodtech ASA, 14 May 2014

2 Agenda Highlights Financial review Order book Goodtech in brief Outlook 2

3 Highlights, first quarter 2014 Turnover of MNOK 558,4 in Q compared with MNOK 575,6 as in Q Acceptable due to lower activity in our project portfolio in Q1. EBITDA of MNOK 8,2 in Q1 2014, compared with MNOK 22 in Q Weaker EBITDA than planned due to postponed and lower progress in some larger project and temporarily lower activities in our markets. Positive progress in Solutions business unit. Order backlog of MNOK at the end of Q1, compared with MNOK at the end of Positive outlook in our markets 3

4 Highlights, first quarter 2014 All business units focus on optimizing their operations Project operations Strategic Market and Sale Cost control Human resources, continue training activities Continue with action plan in Solutions to improve earnings. EBITDA loss in previous quarters turned to profit in Q1. Environment turnover increased with 24,3% in Q1 compared to Q Infra and Products weak performance in the quarter Installation and testing of Energy Recovery System ongoing. 4

5 Highlights, first quarter 2014, Market Order backlog continue on a high level, MNOK Some of the contracts in Q1: MNOK 40 Contract for delivery biogas treatment plant to Tønsberg - Vestfold Biogass (not in orderstock) MNOK 35 Contract for delivery of control systems and panels to Hydro Aluminum, Karmøy Plant. MSEK 25,8 LKAB, Power and installation, Svappavaara MSEK 12 NCC, Power and installation contract MSEK 11,6 Jämtnät AB, power contract MSEK 7,8 Scania, production line solution 5

6 Highlights, first quarter 2014, Market Significant contracts won after Q1 MSEK 25,6 contract for power transformation and distribution station for Älvsjö plant for Fortum Distribution in Stockholm Renewal of frame agreement for Integrated Operations(IO) with Statoil Delivery of Manufacturing Execution System (MES) to Hydal, Raufoss High level activities in the market. Promising outlook. 6

7 7 Financial Review

8 Main figures (NOK 1.000) Q1 14 Q Revenues Product expenses Salary expenses Other operating expenses EBITDA EBITDA % 1,5 % 3,8 % 3,5 % Depre ciation Non recurring items EBIT Net financial item s Share of Profit from Associated comp Profit before taxes Taxes Net result from continuing operations Net result Attributable to: Ow ners of the parent Non-controlling interests Sum Earnings per share from continuing operations 0,01 0,37 1,28 Deluted earnings per share 0,01 0,37 1,28 8

9 Quarterly revenues and earnings - historical 700 Revenues 30 EBITDA MNOK MNOK

10 Financial highlights Balance sheet NOK m illion Fixed tangible assets 73,3 47,1 67,5 Intangible assets 696,9 664,6 696,8 Total fixed assets 770,3 711,7 764,2 Cash 17,3 20,5 33,4 Other current assets 699,1 630,6 739,2 Total current assets 716,4 651,1 772,6 Total assets 1 486, , ,8 - Total equity 713,9 716,2 725,2 Non-current borrow ings 109,7 50,4 118,3 Other non-current liabilities 12,9 14,9 11,5 Total non-current liabilities 122,6 65,3 129,9 Current borrow ings 88,5 26,5 77,2 Other current liabilities 561,7 554,8 604,6 Total current liabilites 650,2 581,3 681,8 Total equity and liabilities 1 486, , ,8 - Net cash and borrow ings 180,9 56,4 162,2,,, Equity Ratio (%) 48,0 % 52,6 % 47,2 % Net Gearing (%) 25,3 % 7,9 % 22,4 % Liquidity Ratio 1,1 1,1 1,1 Definitions: Net Gearing (%): Net interest Bearing Debt/Total equity Liquidity Ratio : Current Assets/Current Liabilities 10

11 Financial highlights Cash flow NOK Q1 14 Q Cash flow from operations Cash flow from investments **) Cash flow from financials Net changes in cash from period Net Cash funds at beginning of period Effects of exchange rate fluctuation on cash held Net Cash funds at end of period *) *) Consisting of Cash and cash equivalents - balance sheet Overdraft facility Net Cash funds at end of period Undraw n credit facilities amounts to MNOK 106,0 at the end of Q1 **) Includes investment in Energy Recovery Pilot 11

12 Cash flow from operations and EBITDA Development in Cash flow from operations and EBITDA on 12 months rolling basis 12

13 Employees per business area Projects & Services Infra Solutions Environment Products Admin Total no. of employees by :

14 Order backlog MNOK Projects & Services Infra Solutions Environment Products 14

15 Business areas figures and facts Projects & Services Infra Solutions Environment Products 15

16 Business unit: Projects & Services (P&S) NOK Q1 14 Q Revenue EBITDA EBITDA margin % 3,6 % 5,5 % 5,1 % Order backlog No. of employees MNOK Revenues Highlights P&S business unit has performed well in the quarter. Some projects postponed in start-up and finalization phase Turnover on same level as Q EBITDA lower than Q Focus on activities for improving profitability going forward Order backlog stable compared to end of 2013 and increased compared to Q Won several contracts confirming our position as one of the leading suppliers, LKAB, Statoil, Hydro, Fortum. Strategic focusing in our business MNOK EBITDA 5 (5) 16

17 Business unit: Infra NOK Q1 14 Q Revenue EBITDA EBITDA margin % -3,2 % 1,4 % 3,6 % Order backlog No. of employees Highlights Turnover 25% lower than Q Low activity in the larger projects in Q1 gives low utilization of workforce and low progress in the projects. Activity will vary from quarter to quarter. Negative EBITDA as consequence of turnover reduction. Order backlog is still on a high level. Market look promising in the longer perspective, both in Sweden and Norway. Won first smaller contract in Norway after Q1 MNOK MNOK Revenues EBITDA

18 Business unit: Solutions NOK Q1 14 Q Revenue EBITDA EBITDA margin % 0,1 % -3,4 % -5,2 % Order backlog No. of employees MNOK Revenues Highlights Turnover in Q1 on same level as in Q Improvement plan in Solutions gives positive effects on EBITDA. Improvement work will continue Order backlog on acceptable level. Large prospect portfolio. Focus on strategic sale and market. MNOK EBITDA (1) (2) (3) (4) (5) (6) 18

19 Business unit: Environment NOK Q1 14 Q Revenue EBITDA EBITDA margin % 1,8 % 2,6 % 2,7 % Order backlog No. of employees MNOK Revenues Highlights Significant turnover increase in Q compared to Q High level of project activity in Q1 EBITDA in Q1 on typical Q1 level. However loss in one project had negative effect on margin Order backlog is varying. Backlog is on acceptable level taken into account contracts included in order backlog after Q1. Won MNOK 40 Contract for delivery biogas treatment plant to Tønsberg - Vestfold Biogass Activity in the Norwegian SBR / Biovac market has increased in 2014, both in the Norwegian and especially in the Swedish market. Market survey confirms positive market expectations for 2014 MNOK EBITDA (1) (2) 19

20 Business unit: Products NOK Q1 14 Q Revenue EBITDA EBITDA margin % -4,0 % 11,0 % 7,6 % Order backlog No. of employees MNOK Revenues Highlights Weak turnover in Q1 compared with Q mainly due to a temporal weak market for Products in beginning of New sales personnel in end 2013 and in beginning of Increased sales activities in the quarter EBITDA EBITDA is weak due to low turnover and increased investment in salesforce. Increased number of prospects and leads in the period. P&S contract for Norsk Hydro will also give large sales volume for Products. Market outlook is positive MNOK (1) 20

21 Goodtech in brief Goodtech shall be the leading supplier of automation, electrical, process, industrial engineering, and environmental solutions in the Nordic region. 21

22 A considerable technology group - background Turnover increased from MNOK 130 in 2005 to MNOK in 2013 Norsk Elektrisk Kabelfabrikk A/S founded New name: Goodtech Business idea: Environmental tech Includes automation and material handling into the business idea El & Industrimontage Svenska AB and Goodtech ASA merge into the New Goodtech El & Industrimontage AB founded MNOK TURNOVER YEAR 22

23 Goodtech in brief Approx employees, with a revenue of NOK 2,4 billion Strong local presence with almost 40 offices in Sweden, Norway and Åland Headoffice in Oslo and listed on Oslo Stock Exchange Sweden Approx employees 27 offices, from Kiruna in the north to Malmö in south Norway Approx 290 employees 10 offices, with headoffice in Oslo Åland Approx 40 employees Office in Mariehamn 23

24 Market drivers Upgrade of infrastructure and energy systems Increased efficiency and competitive ability within the industry Society s need for more environmental friendly solutions, products and projects 24

25 Organisation Goodtech is organised into five business areas Projects & Services Infra Solutions Environment Products Projects & Services Infra Solutions Environment Products 25

26 Solid service and product portfolio Automation Power technology Installation Industry technology Environment technology Innovative technologies and solutions Turn-key projects Broad specter of services and competence 26

27 Market segments Energy and heating Water & sanitation and biogas Building and public sector Infrastructure Industry Oil and gas 27

28 Highlights Technology development Technology agreement with Dubal for Energy Recovery signed. Investment in pilot. Installation and start up of test in progress. Technology has high potential when successfully tested Dedicated technology development activities in Solutions Technology is platform for winning contracts Develop technology and standardized solutions to stimulate to repeat business in all business units 28

29 Commercial and financial risks for Goodtech Commercial and market risk Market for Industry projects and solutions some risk Market for Infrastructure projects and solutions some risk Financial risks In general small currency exposure In general small risk for contract cancellation In general small risk for loss on receivables In general some risk related to projects Turn-key projects and deliveries Some risk related to project execution Various complexity, size and duration of projects Shortage of Project Managers Reducing risk: MQSP (Method, Quality, Safety and Procurement) department focus on training, improvement of methods and quality Training Project managers and employments ongoing Technology and product development Some risk related to technical issues and market positioning 29

30 30 Outlook 2014

31 Outlook - Market Expect continuous upgrade and large investments within infrastructure, energy and oil & gas In general, promising markets for Goodtechs services, solutions and products basis for organic growth The uncertainty in some markets due to uncertainty in the global economy seems to decrease. However still unpredictable Brief market analysis: Power and Energy market Infrastructure, railway/subway Industry, mines Industry, manufacturing Industry, paper Oil & Gas Industry Environment Public buildings 31

32 Summary / Outlook 2014 Growth strategy Organic growth in business areas where Goodtech has strong position and positive market expectations Expect strong market drivers within some market segments which is basis for three separate strategic initiatives Energy / Power Oil & Gas Aquaculture Improve and maintain strong margins 32

33 Summary / Outlook 2014 In 2014 Goodtech shall build stronger positions Continue to build the Goodtech brand Use customer focus and well established market position to increase business Use of own product technology and technical competence Open for non-organic growth within certain areas, consolidation possibilities in the market Maintain active dividend policy 33

34 The Goodtech way A better world through the integration of sustainable solutions