FINANCIALS BUSINESS CASE

Transcription

1 FINANCIALS BUSINESS CASE ROADSHOW SLIDE PACK AMSTERDAM 18 August 2016 SEPTEMBER

2 INDEX 01 INTRODUCTION 3 02 RESULTS H BALANCE SHEET STRATEGY SHAREHOLDER INFORMATION OUR ACTIVITIES 60 2

3 COMPANY OVERVIEW Leading global dredging & maritime expert With 10,700 employees and 900 vessels (incl. JVs) Active in 90 countries across 6 continents Customers in Energy, Ports and Infra Headquarters in Papendrecht, the Netherlands Listed on Euronext 3

4 OUR WORLD REVENUE BY GEOGRAPHY 11% 5% 10% The Netherlands 20% Rest of Europe Australia / Asia 14% HY % Middle East Africa North and South America 4

5 OUR CLIENTS AND SOLUTIONS ENERGY O&G and wind energy companies, mining companies and related EPC contractors and subcontractors PORTS Government, port and terminal operators, shipping companies, insurance companies INFRA International project developers Transport & Installation of floating and fixed structures for O&G and Renewables, pipeline & cables, survey, IRM, port construction, logistical management and terminal services Port design and construction, capital and maintenance dredging, breakwaters, towage services and salvage Land reclamation; coastal and riverbank protection; road, rail and bridge construction 5

6 FINANCIAL PERFORMANCE (EUR mln) 1, ,500 3,000 2,500 2,000 1,500 1, EBITDA Revenue 6

7 INDEX 01 INTRODUCTION 02 RESULTS H BALANCE SHEET 04 STRATEGY SHAREHOLDER INFORMATION 06 OUR ACTIVITIES 7

8 HY 2018 RESULTS Revenue: EUR 1,166 mln (1H2017: EUR 1,094 mln) EBITDA: EUR 167 mln (1H2017: EUR 225 mln) Extraordinary charges: EUR 397 mln Net operating profit: EUR 35 mln (1H2017: EUR 75 mln) Order book: EUR 3.9 bln (End 2017: EUR 3.5 bln) Solvency: 56.2% (End 17: 62.6%) 8

9 KEY FIGURES EUR mln H1 18 H Revenue 1, , ,342.6 Order book 3,885 3,246 3,495 EBITDA Result JVs & associates Operating result Extraordinary charges EBIT Net operating profit (excl extraordinary charges) Net profit (loss) Solvency 56.2% 62.4% 62.6% 9

10 REVENUE BY REGION EUR mln H1 18 H The Netherlands Rest of Europe Australia / Asia Middle East Africa North and South America Total 1,166 1,094 2,343 10

11 REVENUE & EBITDA BY SEGMENT EUR mln H1 18 H Dredging & Inland Infra ,298 REVENUE 4% Offshore Energy Towage & Salvage Holding & Eliminations Total Revenue 1,166 1,094 2,343 40% 56% EUR mln H1 18 H Dredging & Inland Infra EBITDA 8% Offshore Energy Towage & Salvage Holding & Eliminations Total EBITDA % 66% 11

12 OPERATING RESULT BY SEGMENT EUR mln H1 18 H Dredging & Inland Infra Offshore Energy Towage & Salvage Non allocated income & expenses Total Operating result Extraordinary Charges Total EBIT

13 ORDER BOOK BY SEGMENT Dredging: Singapore Mega Port, Singapore polder, IJmeer island Amsterdam Offshore Energy: various smaller contracts Q3: Offshore float-over installation and logistical management contract JV order book (not incl. below): EUR 1,155 mln (YE17: EUR 1,063 mln) EUR mln 30/6/18 31/12/17 Dredging & Inland Infra 3,006 2,477 Offshore Energy 862 1,011 Towage & Salvage 17 7 Total 3,885 3,495 13

14 DREDGING & INLAND INFRA 14

15 DREDGING & INLAND INFRA Revenue up and earnings stable Higher hopper fleet utilization Positive contribution from Dutch Inland Infra activities Order book increase driven by Singapore Tuas, Singapore polder, IJmeer island Amsterdam plus numerous smaller projects EUR mln H1 18 H Revenue ,298 EBITDA Net result JVs and associates Operating result Order book 3,006 2,309 2,477 15

16 DREDGING UTILIZATION HOPPERS (Weeks per annum) CUTTERS (Weeks per annum) H H1 18 H1: 25 H1: 31 H1: 10 H1: 20 16

17 OFFSHORE ENERGY 17

18 OFFSHORE ENERGY Contracting: stable revenue and slightly lower earnings Good contribution from seabed intervention and cable laying Services: revenue decline and large earnings swing into loss making Low-end heavy marine transport market structurally problematic. Decision to exit lossmaking business and vessels Good performance and contribution from survey (Gardline) EUR mln H1 18 H Revenue EBITDA Net result JVs and associates Operating result Order book , half year EBITDA is presented excluding extraordinary charges 18

19 TOWAGE & SALVAGE 19

20 TOWAGE & SALVAGE Salvage: good half year Towage: some JVs impacted by increased competition and pricing pressure Impairment on embedded acquisition related goodwill of Kotug Smit Towage and Keppel Smit Towage JVs EUR mln H1 18 H Revenue EBITDA Net result JVs and associates Operating result Order book

21 OVERALL TOWAGE FINANCIALS Financials including JVs on 100% basis EUR mln H1 18 H Revenue EBITDA Operating result Order book 1,155 1,250 1,063 Net debt

22 HOLDING & ELIMINATIONS 22

23 HOLDING & ELIMINATIONS H result includes usual non-allocated head-office costs and nonrecurring income and expenses H result included gain of real estate transaction EUR mln H1 18 H Revenue EBITDA Net result JVs and associates Operating result

24 EXTRAORDINARY CHARGES H Offshore Energy: Impairment assets: EUR 137 mln Impairment all remaining goodwill: EUR 155 mln Wind down provisions: EUR 17 mln Harbour Towage: Impairment embedded goodwill within Keppel Smit Towage and Kotug Smit Towage: EUR 88 mln 24

25 OUTLOOK 2018 Market picture unchanged Dredging & Inland Infra: stable volumes and stable margins Offshore Energy Contracting: good projects in portfolio Services: positive effect from termination of low-end transport Towage: stable at current levels Salvage: positive outlook based on projects in hand Sharp increase of H2 18 net profit relative to H1 however lower than H2 17 CAPEX: approx. EUR 250 mln 25

26 INDEX 01 INTRODUCTION 02 RESULTS H BALANCE SHEET 04 STRATEGY SHAREHOLDER INFORMATION 06 OUR ACTIVITIES 26

27 GROUP BALANCE SHEET Impairments: PPE: EUR 137 mln Goodwill: EUR 155 mln Embedded goodwill within associated companies: EUR 88 mln Net working capital: neg. EUR 274 mln (YE 17: neg. EUR 386 mln) Net debt 30/6/18: EUR 239 mln (YE 17: EUR 120 mln) Solvency 56.2% (2017: 62.6%) EUR mln * Property, Plant & Equipment 2,373 2,538 Intangibles & other Fixed Assets Investments in ass. companies Current Assets 1,226 1,024 Cash & Equivalents Total Assets 4,668 4,828 Group Equity 2,622 3,024 Interest bearing debt Provisions & long term liabilities Current liabilities 1,511 1,425 Total Equity & Liabilities 4,668 4,828 * Revised for IFRS 15 27

28 CASH FLOW (EUR mln) H1 18 H1 H2 28

29 CAPITAL EXPENDITURE (EUR mln) DSVs H1 18 Net Capital expenditure Disposals 29

30 CASH FLOW EUR mln H1 18 Net group profit / (loss) -362 Depreciation and amortization 120 Impairments 380 JVs and associates -9 (Book) results investment / divestments -2 Working capital and other -117 Operational cash flow 10 Net capital expenditure -74 Dividend Share buy back program -17 Funding from loans 147 Forex and other -1 Increase of net cash 29 30

31 DEVELOPMENT WORKING CAPITAL Operating working capital / Revenue (EUR mln) -19% - -12% -15% -15% -17% -19% -19% -20% -21% -23% % (250) (500) (750) Operating Working Capital WIP + Receivables - Payables 31

32 MAIN FINANCING FACILITIES & COVENANTS FACILITIES PER 30/06/2018 COVENANTS (EUR mln) RCF Net debt / EBITDA ratio 30/06/2018: USPP II Threshold: maximum 3 EBITDA / net interest ratio 30/06/2018: 28 Threshold: greater than 4 `18 `19 `20 `21 `22 `23 Drawn Headroom 32

33 INDEX 01 INTRODUCTION 02 RESULTS H BALANCE SHEET 04 STRATEGY SHAREHOLDER INFORMATION 06 OUR ACTIVITIES 33

34 BOSKALIS BUSINESS DRIVERS LONG TERM IMPACT POSITIVE Dredging & Inland Infra Offshore Energy Towage & Salvage Growing world trade + Growing energy consumption + Population growth + Climate change ++ 34

35 SEABORNE TRADE IN LINE WITH GDP billion tons loaded 12 Global seaborne trade % 8 5.7%

36 STRONG INCREASE IN VESSEL SIZE TEU Capacity Draft (m) 29% 2% 32% 10% 3% Triple E 9% 14% 16% (Post) New Panamax % 36% 35% 35% 33% Post Panamax Plus % 27% 23% (Post) Panamax (Max) % 31% 25% 20% 19% Feeder

37 EUR 51 BLN DREDGING PROJECTS Europe 10.1B Russia 1.2B LR & CP: 13.7B Ports: 29.2B Oil & Gas: 3.1B Other: 4.9B North America 1.3B = 500M Central America 1.5B M-East 12.2B S/E Asia 8.5B Brazil 3.0B Australia 0.4B Africa 7.9B Contract value of Hopper and Cutter projects only BP published in March

38 HOPPER SUPPLY & DEMAND Hopper m 3 hr (bln) 10 Capacity based on 40 weeks Awarded projects Identified 8 6 Mega Jumbo Large / Medium BP published in March

39 CONTINUED DEPENDENCE ON OFFSHORE OIL & GAS Quadrillion Btu (IEA) 8 Nuclear Other 7% 11% Shale Oil 6 Coal 32% 28% 28% Offshore 4 Natural gas 2 Liquids 68% 65% 61% Other Onshore

40 SUBSTANTIAL NEW OFFSHORE CAPEX NEEDED BLN $ Offshore CAPEX by field status Offshore CAPEX by water depth New Shallow < 125m 200 9% Mid Under Development Producing Deep > 1km 40

41 OFFSHORE WIND ON AVERAGE EUR 1.7 BLN / YEAR Offshore Wind T&I Market Size, NW Europe ( B) Substations Export Cables Array Cables Foundations BP published in March

42 COMPETITIVE WIND LANDSCAPE Foundation Installation (#) Total: 2,857 foundations Array Cable Installation (km) Total: 3,299 km Export Cable Installation (km) Total: 2,157 km Boskalis Boskalis (VBMS) Boskalis (VBMS) 9% Others Others Others 41% 20% 32% 30% 35% 38% Van Oord 13% 17% GeoSea Van Oord 8% 8% 11% 11% Siem Jan de Nul 10% 17% Seaway DeepOcean CT Offshore Prysmian Market Share in Europe

43 STRATEGIC FRAMEWORK Focus Market & Activity Focus Value-Adding Assets Boskalis Optimize Effectiveness Efficiency Expand Dredging & Inland Infra Towage & Salvage Offshore Energy 43

44 S-CURVE Dynamic portfolio Contracting Market developments Impact on financial performance Assets Services 44

45 OPTIMIZE Selective tendering Operational/contractual excellence Boskalis Way of Working (new Group QA system) Fleet rationalization program (24 vessels, 650 FTE s) Head office cost reduction program (230 FTE s) Terminate low-end transport business (11 vessels) 45

46 EXPAND Invest in Dredging Helios CSD Helios sister vessel under construction Invest in Offshore Bokalift 1-3,000 MT crane vessel 2 high-end DSV vessels Broadening foot print into Survey: acquisition Gardline 46

47 STRATEGIC DIRECTION WRAP-UP Challenging business environment Solid basis Limited leverage on balance sheet Healthy cash generation Strong client, people & asset base Focus & optimize existing business CAPEX: EUR 250 million p.a. Invest in mid term opportunities Getting ready for the future 47

48 INDEX 01 INTRODUCTION 02 RESULTS H BALANCE SHEET 04 STRATEGY SHAREHOLDER INFORMATION 06 OUR ACTIVITIES 48

49 SHAREHOLDER BASE HAL Trust (NL), 40.30% Other, 2% France, 2% Spain, 2% Nederland, 2% Germany, 3% Scandinavia, 4% US + Canada, 8% United Kingdom, 11% Sprucegrove, 5.16% Oppenheimer, 5.06% International Value Advisers, 5.06% Marathon Asset Management, 3.57% Dimensional Fund Advisors, 3.15% Black Creek Investment Mgt, 3.03% September 2018 and updates from AFM Register substantial holdings 49

50 EBITDA AND MARGIN GROWTH (EUR) 1, % 30% 25% 20% 15% 10% 5% 0% 50

51 EPS & DPS (EUR) % 0.68 Dividend policy distribute 40% to 50% of net profit aim to have a stable development when possible choice in cash and/or shares 50% 41% 46% 40% 50% Payout % % 40% 40% 45% 46% 87% EPS DPS 51

52 INDEX 01 INTRODUCTION 02 RESULTS H BALANCE SHEET 04 STRATEGY SHAREHOLDER INFORMATION 06 OUR ACTIVITIES 52

53 THREE BUSINESS SEGMENTS ACTIVITY SEGMENTS Dredging & Inland Infra Construction & maintenance of ports & waterways, land reclamation and coastal defense Earthmoving, roads, civil structures, soil remediation & improvement Offshore Energy For O&G and renewables market Contracting: Marine Installation, Seabed Intervention Services: Subsea, Marine transport services Towage & Salvage Harbour towage, Terminal services, Salvage 53

54 DREDGING & INLAND INFRA 54

55 DREDGING & INLAND INFRA ACTIVITIES Construction and maintenance of ports and waterways Land reclamation & Coastal / riverbank protection Dry earthmoving, road constructions, concrete works & soil improvement (SELECTED) CLIENT BASE PORTS: Suez Canal Authority; Port of Rotterdam; Port of Melbourne ENERGY: Chevron; Saipem; Qatar Petroleum INFRA: Dutch Ministry of Transport; Environmental agency 55

56 DREDGING MARKET CHARACTERISTICS MARKET High entry barriers Capital intensive Scale & versatility of fleet Specialist staff Fixed price contracting Knowledge intense Importance of track record Increasingly complex working environment and more client requirements COMPETITIVE LANDSCAPE Total free market size ~ EUR 5-6 bln European Players (70-80% share) Boskalis (NL) Van Oord (NL) De Nul (B) DEME (B) Asia based: DCI (India), Penta Ocean (JP), Hyundai (S-K), Samsung (S-K), CCCC (China) USA based: Great Lakes Various regional/local players 56

57 INLAND INFRA MARKET CHARACTERISTICS MARKET Boskalis primarily active in the Netherlands Local business COMPETITIVE LANDSCAPE Dutch market: BAM; VolkerWessels; Heijmans; Strukton; smaller local players Not capital intensive Focus on large complex projects SELECTED DREDGING & II PROJECTS Fehmarnbelt, Singapore FP3, Suez Canal, Gorgon LNG, Maasvlakte 2, Port Khalifa, Ras Laffan, Porto do Açu, A2 Utrecht- Amsterdam, A1/A6 SAAone, Marker Wadden, Markermeer dikes, Room for the river 57

58 BOOK TO BILL RATIO FOR DREDGING ACTIVITIES ONLY Book to Bill ratio (EUR mln) Revenue x book to bill

59 OFFSHORE ENERGY 59

60 OFFSHORE ENERGY ACTIVITIES Marine Installation: Floating and Fixed structures for Oil & Gas and Renewables as well as decommissioning Seabed Intervention: seabed preparation, landfall installation and pipeline intervention Subsea: Offshore wind cable installation & IRM Marine Transport & Services: Heavy Marine Transport, wet towage & marine services Marine Survey: geophysical & geotechnical ACTIVE THROUGH Boskalis (former brands Dockwise, VBMS and Fairmount) and Gardline 60

61 Services Contracting OFFSHORE ENERGY Marine Installation Floating & Fixed structures: platform installation, mooring & hook-up floating structures, OWF foundations & substations and decommissioning Seabed Intervention Subsea Seabed preparation, subsea rock installation, landfall construction OWF cables, IRM & light construction with air saturation diving and ROV services up to 300m water Marine Survey Geophysical and geotechnical survey Marine Transport & Services Dry transport (non) floating heavy structures, wet tow of floating structures, offshore services of AHTs, sheerlegs & barges 61

62 BOSKALIS ACTIVITIES IN OFFSHORE Concept design (pre FEED) Front End Engineering & Design (FEED) EPC Maritime Infrastructure Transport & Installation Production Decommissioning Oil & Gas Survey Greenfield port infrastructure Fixed & floating structures Subsea infrastructure Short term HMT (repositioning of assets) Terminal services Decommissioning: removal of platforms and subsea structures IRM Renewables Survey Foundation engineering, design & procurement Seabed preparation, T&I of foundations, interconnector and array cables Power cable IRM 62

63 OFFSHORE ENERGY MARKET CHARACTERISTICS (SELECTED) CLIENT BASE PROJECTS Majors (Statoil, Shell, Total, Chevron, Conoco Philips, Dong Energy) Tier 1 Offshore contractors (Saipem, Heerema, Technip) Contracting Aasta Hansteen Floatover Pipeline intervention Statoil (Norway) Landfall installation Ichthys (Australia) FPSO installation MODEC (Brazil) Wikinger OWF Iberdrola (Europe) Balance of Plant OWF Aberdeen (Europe) OWF cables Borssele Alpha Beta (Europe) Services Subsea IRM & construction - Maersk Oil (Denmark) Offshore support to Heerema, Saipem, Seaway Heavy Lifting (Gulf of Mexico and North Sea) 63

64 HEAVY MARINE TRANSPORT MARKET CHARACTERISTICS MARKET Growing demand for energy requires increased upstream and transport of O&G Increasing offshore exploration and production activities Deeper, more remote and harsher conditions Delivery of new rigs and production platforms Top sides becoming bigger and heavier making float over installation attractive permitting constructed in Far East COMPETITIVE LANDSCAPE Boskalis clear market leader Limited number of specialist global players (Cosco) Capital intensive Global commercial O&G network 64

65 TOWAGE & SALVAGE 65

66 TOWAGE & SALVAGE ACTIVITIES Harbour and Terminal services Activities within strategic partnerships / JV Escorting, berthing & unberthing of seagoing vessels, Pilotage, Launches, Line handling, Fire fighting, Maintenance, Beaconing Salvage Emergency response, wreck removal & environmental protection Global coverage from Rotterdam, Houston, Cape Town & Singapore ACTIVE THROUGH Harbour towage & Terminals JVs: KOTUG SMIT Towage (NW Europe), Keppel Smit Towage (Asia), Saam Smit Towage (Americas), Smit Lamnalco (Terminals) Salvage: SMIT 66

67 TOWAGE CLIENTS & LOCATIONS PORTS: International shipping companies, shipping agents in Rotterdam, Belgium, Germany, United Kingdom, Brazil, Mexico, Panama, Canada, Singapore, Malaysia ENERGY: IOCs, NOCs, mining companies in remote regions like Caribbean, West-Africa, East- Africa, Australia, NW Europe, South East Asia 67

68 BOSKALIS TOWAGE JVS Europe: KOTUG SMIT Towage Saam Smit Towage Keppel Smit Towage 400+ vessels 100 ports 35 countries Smit Lamnalco 68

69 TOWAGE MARKET CHARACTERISTICS Harbour Towage: Terminal Services: 10s 100s clients per port Pay per tow with indexation International shipping companies & agents Growth determined by local port growth One client (O&G major) per port Multi year day rate based with indexation Growth through new terminal contracts IOCs, NOCs, mining companies Future driven by further consolidation: Organic and consolidation growth by joint ventures Economies of scale in a region Efficient capital structure using business stability & non-recourse financing for leverage Share best practices and back-office organization cross JVs 69

70 TOWAGE COMPETITIVE LANDSCAPE April

71 SALVAGE 71

72 SALVAGE MARKET CHARACTERISTICS MARKET Emergency & Environmental response Strong global network for tug boats Speed to get to casualty first (Environmental) track record Reputation with insurance & shipping co s Contract structure: LOF / SCOPIC (cost plus) Wreck removal Access to (own) assets Engineering & Innovation Cost estimating know how Track record Contract structure: LOF and fixed price COMPETITIVE LANDSCAPE Many small local players for simple casualties Global players: SMIT, Ardent (Svitzer & Titan) 72

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