Investor Presentation

Transcription

1 Investor Presentation 22 AUGUST 2007 H earnings presentation

2 Important notice! This document has been produced by Dockwise Transport N.V (the Company ) and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person! No representation or warranty (express or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document! This document does not constitute or form a part of, and should not be construed as, an offer or invitation to subscribe for or purchase any securities and neither this document nor anything contained herein shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever 2

3 Important notice, continued! This document contains certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forwardlooking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words believes, expects, predicts, intends, projects, plans, estimates, aims, foresees, anticipates, targets, and similar expressions. The forward-looking statements, contained in this document, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are uncertain and subject to risks. A multitude of factors can cause actual events to differ significantly from any anticipated development. Neither the Company nor any of its subsidiary undertakings nor any of its officers or employees guarantees that the assumptions underlying such forward-looking statements are free from errors nor does any of the foregoing accept any responsibility for the future accuracy of the opinions expressed in this document or the actual occurrence of the forecasted developments.! No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, neither the Company nor any of its subsidiary undertakings nor any such person s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document. 3

4 Agenda! Highlights H André Goedée! Financials Stefan A. Malfliet! Business André Goedée! Questions and Answers André Goedée, Stefan A. Malfliet 4

5 The first half year results presented today are a clear mark of the strong underlying performance of the Dockwise group, as evidenced by a 42% rise in adjusted EBITDA and a 10% growth in revenue. André Goedée 5

6 Contract executions H Blue Marlin: Ocean Endeavour Swan class: COSL modules Blue Marlin: Gorilla VI & Galaxy II Black Marlin: Scooter/Boswell/HI2 Mighty Servant 1: Tahiti Spar Black Marlin: Ensco 105 6

7 Contract award float-over: CPOC! Project Title: transportation and installation, MDPP* Deck for CPOC JDA Block-17 field development Phase 1! Client: Carigali-PTTEPI Operating Company SDN. BHD. (CPOC)! Deck weight: approximately 19,000 mt! Vessel: Black Marlin! Project execution phase: approximately 3 rd Quarter 2009! Contract value USD million * Muda Processing Platform Deck 7

8 Board of Directors of Dockwise Ltd. Current composition of Board of Directors Adri Baan (Chairman) Bert Bekker Mark Dickinson Brian Francoeur André Goedée Rutger van Slobbe New boardmembers Tom Ehret (CEO of Acergy SA and Stolt Offshore SA) Pietro Franco Tali (Chairman and CEO of Saipem S.p.A.) 8

9 Financials 9

10 Key Financials 1H 2007 Amounts in USD m 1H07 1H06 Change 2Q07 2Q06 Change Revenue % % EBITDA Margin % % 13.8% % 41% (0.6%) Adjusted EBITDA (1) Margin % % 41.7% % % 24.2% Net Profit (Loss) (2)(3) (41.5) 27.3 (n/a) (29.9) 16.6 (n/a) 1. Adjusted for contribution from Mighty Servant 3 of USD 13.0m for 1H 2007 (USD 6.5m for each quarter). 2. Includes, amongst other things, the amortization of the backlog (USD 20.4m for 1H 2007 and USD 11.1m for 2Q 2007) as a result of the buy-out/sealift transaction, and does not include compensation for the Mighty Servant For 2Q 2007 (thus for 1H 2007), includes one-off SG&A expenses of USD 4m due to the buyout and the Sealift transaction as well as interest expenses of USD 9.2m in relation with the May refinancing. 10

11 Financials and Backlog Backlog (1) Revenue Adjusted Ebitda Q07 2Q07 DHL DYT MS3 Adjustments Bareboat Revenues Offshore, T&I and Onshore Rigs, Military P&MI and Various Q Q H H Q Q ! Bareboat revenues for Sealift vessels USD15,000 / day for 3 vessels and 12,500 / day for 2 remaining vessels as of 4 May 2007! DYT revenues are highly seasonal with Q2 and Q4 representing the high season! The first Sealift converted vessel contributed to 1H 2007 results for only one month +9.8% +10.2% +24.2% +41.7% 1H H07 1. Backlog is for Heavy Lift Business only (includes Rigs, Military P&MI & Various and Offshore, T&I & Onshore), excludes Letters of Intent (LOI). 11

12 Historical Key Financials Revenue Ebitda (1) DHL Offshore, T&I and Onshore Rigs, Military P&MI and Various DYT ! Growth supported by increase in exploration and development in offshore and increased in drilling day rates coupled with improved rigs utilisation rates! Positive impact of the decision to fully outsource vessel operations to Anglo Eastern! Stabilisation costs (vessel related expenses)! Increased focus on fleet management from a commercial and operational point of view 1. Dockwise started reporting DYT separately in January Adjusted EBITDA is equal to EBITDA for historical annual figures

13 Utilisation of Vessels! Type I, Type II, Type III: on average 320 days! Historically higher, but LTE programmes should impact the number of vessel days available in the coming years! However T&I, Onshore and Offshore typically have different margins and contract sizes compared to rigs, military, P&MI and other! Type IV: utilisation rate between 70%-80% (based on 320 days)! Type V: DYT does not follow utilisation type model as it is based on revenue growth! The company budget is based on contract margin for T&I, offshore and onshore rather than on day rate and utilisation 13

14 Example schedule optimization Teal Atco (59 days) 12-Mar mob. 22 days 10-May Atco (59 days) 12-Mar 1-Jun 6 days 10-May 4 cranes (90 days) 30-Aug navy boats (27 days) 1 16-May 12-Jun 4 cranes (90 days) 13-Jun 10-Sep Due to booked contract: USD 1.1 million schedule optimization USD 1.4 million increase dayrate USD 0.6 million increase days USD 3.2 million increase revenue 14

15 Direct Costs Contract Related Expenses (1) DYT Q 06 2Q 07 Vessel Related Expenses (1) 2Q 06 2Q DYT 1. Dockwise started reporting DYT separately in January H 06 1H 07 DHL H 06 1H 07 DHL Comments! Dockwise has managed to keep costs stable while revenues have increased significantly vs. 2006!1H 2007 Adjusted EBITDA margin up 7% points year-on-year! Contract related expenses mainly related to fuel prices and steel prices for seafastening! Vessel related costs are mainly impacted by crew costs and higher insurance costs 15

16 Operating Costs Operating Costs Comments Q06 2Q H06 1H07! Depreciation!Upward revaluation of fleet on the books!life extension programmes! Amortization! SG&A!Mainly driven by backlog amortization!usd 4m one-off increase in 1H 07: redundancies (Sealift transaction), management bonus (Sealift transaction, new logo Contract and Vessel Related Depreciation SG&A Amortization 16

17 Balance Sheet Amounts in USD m Unaudited 30 June March December 2006 Property, plant & equipm Intangible assets Other assets Total assets 1, Total Equity (6.0) NC Interest bearing borrowings Other liabilities Total Liabilities 1, Capital structure reflects 22 operational vessels (5 Suez max tanker due to be converted to heavy lift vessels) 17

18 Financing Costs (Cont d) Financing Structure (1) & Blended Interest Rates (2) Key Terms (3) 11.3% 10.1% % ! Tranche B! LIBOR %! Tranche C! LIBOR %! Second Lien! LIBOR % H H Jan 07 Apr 07 May 07 Old Bank Loan Tranche B Tranche C Second Lien Mezzanine Shareholder loan PIK 1. January 2007 is post acquisition by 3i; April 2007 is post refinancing; May 2007 is post merger with Sealift. 2. blended rates exclude bank fees and amortisation of capitalised loan fees. 3. Interest rates mentioned are as of April 2007 refinancing.! PIK! LIBOR %! To be reimbursed out of primary proceeds of IPO! Revolving credit facility (USD 60m)! LIBOR %! Only USD 10mn drawn at end July! Capex facility (USD 40m)! Not drawn yet! To be spread over Tranche B and C! Facility A (USD 80m)! Only Letter of Credit drawn! Corresponds to final payment for Sealift Comor and Traveller 18

19 Financing Costs Financing Costs Comments! Up to USD 33.9m in Q vs USD 20.4m in Q1 2007! 2Q 2007 included USD 9.2m! Early repayment penalty of USD 5.5m and 3.7m of capitalized loan fee relating to prior Sealift facilities! H1 also includes USD1.4m of amortization of capitalised loan fees! 1Q 2007 included USD 10m of non cash interest expenses relating to shareholders loan and to the mezzanine facility ! 1H 2007 also included USD 1.4m of amortization of capitalised loan fees! Mezzanine facility was replaced by PIK notes in Q2! PIK notes to be reimbursed out of primary proceeds of IPO 1.7 2Q06 2Q H 06 1H 07! Saving of USD 2.5m of interest cost per quarter! Future normalised yearly interest rate charge expected to be around USD 90m 19

20 Capex and Vessel Conversions! First Sealift vessel, target, was delivered on May 30, 2007! In general, the Company expects 6 months conversion time from delivery to yard! Survey and docking is on average $1m per year per vessel! USD85 m of total capex is expected for the full year 2007!Relate to normal survey and docking, delivery of Yacht Express, down payments for the Granite and Marble and life-time extension investments! Expected delivery to yard:!mover Q2 2007!Traveller Q3 2007!Comor Q4 2007!Granite Q1 2008!Marble Q

21 Description of business 21

22 Transport Heavy Lift Management & Installation & Marine Service Contracting provider Company Core Business Growth Segments Traditional Heavy Lift Yacht Transport Installation / Float-over Onshore Versatile fleet of 22 vessels State of the art fleet 22

23 Services provided to different market segments Rigs Core Business Offshore structures Growth Segments Float-overs Yachts Military Onshore Structures 23

24 Fleet versus Market segments Fleet Profile Type Ship Names Retire Date after LTE Core Business Growth Segments OPEN STERN TANKER SHAPE DOCK- TYPE YACHT- CARRIERS Type I Type II Type III Type IV Type V Blue Marlin Mighty Servant 1 Black Marlin Transshelf Mighty Servant 3 (1) Transporter Target Traveller Comor Granite Marble Swan Swift Tern Teal Dock Express 10 Enterprise Super Servant 3 Super Servant 4 Explorer Dock Express OFFSHORE HEAVY LIFT RIGS MILITARY YACHT FLOAT-OVERS ONSHORE OFFSHORE STRUCTURES Competitors in Growth Segments:! Saipem! Technip! J. Ray McDermott! Acergy! Subsea7 1. Currently out of Service 24

25 Acquisition of Offshore Kinematics and Ocean Dynamics! Established engineering and project management capabilities in float-over market segment! Presence in high-tech installation market! Engineering presence in China and US! Total engineering workforce now more than 50 employees including several PhDs 25

26 Q&A