TTS GROUP ASA. Oslo, 13 May 2015 Björn Andersson, CEO Henrik Solberg-Johansen, CFO. Q1 Results Photo: Jan Rolf Jacobsen/Norlines

Transcription

1 TTS GROUP ASA Q1 Results 2015 Oslo, 13 May 2015 Björn Andersson, CEO Henrik Solberg-Johansen, CFO Photo: Jan Rolf Jacobsen/Norlines

2 NEWS: New PCTC contract of MNOK120 Cargo access equipment to two PCTCs (Pure Car Truck Carriers). Total order value is approx. MNOK 120. Under construction - Korean Shipyard. Deliveries completed during

3 Agenda 1 st quarter headlines Strategy and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Strategy and market outlook Summary 3

4 TTS Group ASA 1 st quarter 2015 key figures Turnover 1Q MNOK 599 up from MNOK 554 1Q last year EBITDA 1Q of MNOK 1, up from MNOK -28 in 1Q 2014, in line with Q3 2014, but reduced compared to 4Q 2014 Order intake 1Q MNOK 301 excl. 50/50 companies. Total order intake 1Q MNOK 590 (incl 100% of 50/50 companies)* Order backlog 1Q 2015 MNOK 4 418, incl. 100% of 50/50 companies (*)TTS holds 50% of the 50/50 companies 4

5 TTS Group ASA Turnover Turnover and EBITDA development Q Q EBITDA 60,0 10 % 40,0 20,0 5 % 0,0-20,0-40,0 Act Q Act Q Act Q Act Q Act Q Act Q Act Q Act Q Act Q Act Q Act Q Act Q % -5 % -60,0-10 % -80,0-100,0-15 % -120,0-20 % EBITDA EBITDA margin Note: - Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities - EBITDA Q of MNOK 36 is excluding positive pension effect of MNOK 101 5

6 TTS Group ASA Order intake and order backlog MNOK Q Q Q Q Q Q Q Q Q ,8 1,6 1,4 1,2 1,0 0,8 0,6 0,4 0,2 - Book to bill Order intake per quarter including 100 % of 50/50 s Book to bill = Order intake / Revenues Order intake (ex JV) Order intake JV (100 %) Book to bill (incl 100 % JV) Order backlog per is MNOK including 100 % of 50/50 owned companies Divided per year of delivery; Group ex JVs JV 100 % 6

7 Agenda 1 st quarter headlines Strategy and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Summary 7

8 Overall vision for TTS Group Vision The global supplier of handling systems to the maritime and offshore industry with the strongest focus on end user satisfaction Values that drive us System & Technology competence Reliability & Customer satisfaction Health Safety & The Environment A preferred global supplier means: Strategy Be on the makers list and get market share > 30 % in each market segment where we are positioned Product technology among the top 3 in each segment where we compete Customer oriented solution that support the life cycle of the vessel from new design to recycling. Wider product offerings to support package sales and reduce sales costs Profitability on par with industry average 8

9 Our long-term goal Building a global BNOK 6 System and Service provider company in the maritime and offshore industry within 2020 Grow by internal efficiency and capture market share Add peripheral products to complement Product costs on par with the market Key accounts to support customer relationships Major focus to penetrate our installed base and third party equipment 9

10 TTS revenue growth potential Potential for growth towards 2020, goal of BNOK 6 turnover BNOK revenue Growth in current product sales Package sales gain New products Growth in lifecycle services 2020 revenue potential 10

11 Operational Excellence & Synergies Phase 1 (2013) Phase 2 (2014) Organizational adjustments and merging units Integration of Container/Bulk/Tank business unit initiated. Focus on efficient operation/process Downsizing in Offshore and Multipurpose General Cargo finalized and new work process implemented Enhance market focus Key account structure implemented Corporate driven controller structure implemented. Momentum cost reduction projects Product development started in all divisions. Cost savings operational cost ~ MNOK 70 + sourcing cost ~MNOK 60 Phase 3 (2015) Customer driven growth market shares to increase Ship-type focus Increase product leverage per ship Profitability through cost efficiencies substantial lower sourcing costs Closing gaps /product development reinforced competitive position Lean and mean business substantial better focus on segments where higher productivity are achieved In 2014 MNOK 130 were released in operation & sourcing costs In 2015 we will eliminate another MNOK 100

12 TTS has a strong position in the biggest global shipbuilding market China and Korea account for ~70% of global shipbuilding TTS China market share Strategy % of global shipbuilding backlog (CGT) Hatch covers 90 % 80 % 65 % 70 % Uniquely positioned to capitalize on China partnerships and through BU presence in Korea 60 % 50 % 40 % 30 % Hose handling cranes 55 % A new Chinese 50/50 owned company is established for Multipurpose & General Cargo 20 % 10 % 0 % Cargo cranes 22 % Increased operational focus on Chinese JVs China Korea Japan Source: Clarkson Research Services 12

13 Positive underlying market drivers World economy, seaborne trade and shipbuilding Growth 12,0% 10,0% 8,0% 6,0% 4,0% 2,0% ,0% - 4,0% The demand for TTS equipment offering is related to the overall activity in shipping markets An important driver for shipping and shipbuilding markets is the state of the world economy World GDP expected to grow at CAGR 3.8% until 2017, in line with historic growth and a slight increase in growth relative to Seaborne trade is highly correlated to growth in world GDP Shipbuilding is a cyclical market and experienced a large increase in activity in the mid 2000 s until the financial crisis Uptick in contracting and orderbook in 2013/14 Fleet has consistently grown by more than 2% since ,0% World seaborne trade (m. tonnes) World GDP World fleet (dwt)

14 Healthy underlying markets Global economy to remain solid World economy GDP growth 6,0% 5,0% 4,0% 3,0% 2,0% 1,0% -- 2,7% -- 5,4% 4,1% World seaborne trade by type bn tonnes 12,0 10,0 8,0 6,0 4,0 2,0 -- 3,4% 3,3% 3,3% 3,5% 3,7% 4,1% Other Gas Oil products Crude oil Container Minor bulk Major bulk Growth in seaborne trade vs world GDP Seaborne trade growth 10,0% 8,0% 6,0% 4,0% 2,0% ,0% 1,0% 2,0% 3,0% 4,0% 5,0% 6,0% - 4,0% GDP growth - 6,0% Comments Healthy growth expectations for the world economy GDP projected to grow at 3.5-4% towards 2017 Seaborne trade volumes are highly related to the world economy, and is therefore expected to move in the same direction Seaborne trade volumes have shown steady growth for many decades Key growth contributors include container and bulk Source: Clarksons, IMF

15 Contracting, fleet growth and new build prices Fleet growth Growth (dwt) 10,0% 9,5% 8,7% 9,0% 8,0% 6,9% 6,9% 6,9% 7,0% 7,1% 7,0% 6,1% 5,7% 6,0% 5,0% 3,7% 4,0% 3,4% 3,0% 2,7% 2,5% 3,0% 2,1% 2,0% 1,0% New build prices USDm VLCC Aframax Capesize Panamax 2014 Contracting by region CGT Asia Europe RoW Asia share (%) 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Contracting by ship type # of vessels Tankers Bulkers Container Gas MPP & GC Car carriers Passenger & cruise Offshore Other

16 TTS currently addressing NOK 28 bn of the global market TTS market by product group Estimated annual market size (NOKbn) Estimated market 16,0 Marine Offshore Solutions size for marine product categories 0,5 totalling NOK 14,0 15bn 2,2 0,2 Largest product 12,0 0,4 types within 3,1 marine are roro 10,0 equipment, 0,8 winches, hatch 8,0 6,0 6,6 covers and cranes 1,7 14,7 Estimated market 13,0 size for offshore & heavy lift segments at NOK 4,0 13bn 2,9 7,2 Largest market for 2,0 0,7 offshore cranes, drillship cranes 1,5 and offshore -- winches

17 Agenda 1 st quarter headlines Strategy and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Summary 17

18 TTS Group ASA Profit and loss statement 1st quarter Year MNOK Turnover EBITDA Operating profit Net financial items Profit/loss before tax Net result continued business Net result incl discontinued business

19 TTS Group ASA Balance Sheet MNOK Non-current assets Current assets TOTAL ASSETS Equity Gross interest bearing liabilities Other liabilities and provisions TOTAL EQUITY AND LIABILITIES Net interest bearing debt / Covenants Net interest bearing debt increased to MNOK 348. Total cash reserve is MNOK 214 as per Equity ratio including subordinated convertible debt is 26.5 % at the end of 1Q 2015 Covenants at 1Q 2015 are met 19

20 TTS Group ASA Cash flow / Working capital / Interest bearing debt Cash flow Q1 Q1 Year MNOK Net cash flow from operations Net cash flow from investments Net cash flow from financial activities Net change in cash Cash and bank deposits at the start of the period Effect of exchange rate changes in bank/cash Cash and bank deposits at the end of the period Cash flow from operations MNOK -74, mainly from increased working capital Offshore and RCN projects MNOK Q1 15 Q4 14 Q3 14 Q2 14 Q1 14Q4 13 Short term interest b. debt Long term int. bearing debt Convertible Bond(*) Total Cash NIBD (**) (*) Convertible loan included at nominal value (**) Negative indicates net asset position Net working capital 20

21 TTS Group - Turnover and EBITDA 1Q 2015 TTS Group ASA Turnover: MNOK 593 EBITDA: MNOK 1 RoRo/Cruise/Navy Container/Bulk/ Tank Offshore Multi Purpose/ General Cargo Shipyard Solutions Services Turnover: MNOK 160 EBITDA: MNOK 15 Turnover: MNOK 72 EBITDA: MNOK 2 *) Turnover: MNOK 79 EBITDA: MNOK -24 Turnover: MNOK 94 EBITDA: MNOK -4 Turnover: MNOK 51 EBITDA: MNOK 4 Turnover: MNOK 136 EBITDA: MNOK 13 Turnover and EBITDA 1Q 2015 *) Includes 50 % of JVs

22 RoRo / Cruise / Navy Cargo handling solutions for car carriers, cruise ships and specialized vessels as well as port handling equipment. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog Improved turnover and profit for the business unit Market for RoRo, particularly PCTC, is positive Competition is fierce and prices are low in the port segment Cruise business is developing The Navy segment is promising 22

23 Container / Bulk / Tank Cargo handling solutions for container ships, tankers and bulk carriers; including winches, cranes and hatch covers. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog *) *) Includes 50 % of orderbacklog in 50/50 owned companies Profit from 50/50 companies MNOK 8,4 (3,6) in Q1 Order backlog driven by strong market positions for the 50/50 companies in China The outlook is strong for container and shows cyclic reduction for tank. The market for big bulk is slow, but emerging in small bulk and special tonnage Moving of business unit head-quarter from Germany to South Korea is completed 23

24 Multipurpose / General Cargo Heavy lift cranes, mooring winches, hatch covers and side loading systems for multipurpose vessels and cargo ships. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog Improved turnover and EBITDA Continued positive activity in Chinese shipyards - several projects are tendering heavy lift cranes Improved order backlog combined with cost cutting measures, basis for improved EBITDA margins New 50/50 company TTS-SCM approached Chinese market in Q1 and achieved large orders in April

25 Shipyard Solutions Production lines and systems for cargo handling to shipyards, focusing on transfer systems for docking and launching. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog Stable activity in the quarter. Several interesting projects may develop in 2015 TTS with a strong position in the ship lift market. 25

26 Offshore Cranes for offshore vessels and offshore installations. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog Segment strongly affected by downturn in offshore market Cost reduction efforts implemented. Due to long lead time for projects effect expected gradually during 2015 Additional cost reduction efforts initiated in 1Q going forward into 2Q Decrease in order backlog. Low order intake Low utilisation and EBITDA under pressure expected in quarters to come 26

27 Services Complete services within maintenance, including spare parts, interval agreements and life time service. Q1 Periodic Full Year MNOK Turnover EBITDA Solid activity in the quarter, and stabile margin Market demand in the segment provides basis for increased turnover, and improvement to the overall profit margin Service market remains influenced by low ship charter rates in some segments 27

28 TTS Group ASA Shareholder structure at May 8 th 2015: Rasmussengruppen AS 13.29% Skeie Technology AS 10.31% Lesk AS 6.13% Stisk AS 6.13% Skeie Capital Investment AS 4.85% Barrus Capital AS 4.00% Skandinaviska Enskilda 3.67% Skagen Vekst 3.53% Holberg Norge Verdipapirfondet 2.50% Tamafe Holding AS 2.49% 10 largest shareholders 56.91% Other (1407 shareholders) 43.09% Total 100,00% Skeie Technology AS, Skeie Capital Investment AS and members of the Skeie family own in total 32,0 %. 28

29 Agenda 1 st quarter headlines Strategy and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Strategy and market outlook Summary 29

30 Summary Positive quarter and improved overall turnover ex Offshore Positive 1Q EBITDA for the third quarter after four negative previous quarters Turnover ex. Offshore continues to improve EBITDA margin ex. Offshore at industry average level Offshore affected by downturn in the market Improvement processes on track We have a road map for the improvement processes going forward in 2015 that has not changed. Up to now we have: Finalized the cost cutting programs in MPGC, CBT and Offshore (Offshore continues cost cutting due to weak market development in 2015) Value chain development in several product segments (sourcing, product development, sales) Positive view on significant market segments The marine market remains good Contracting of new vessels continues to be on a cyclic low level, and the marked is particularly under pressure in some segments, especially Bulkers Car carriers continue with several repeats Container ships grow, especially feeder-size and mega size Multipurpose/General cargo has improved from 2Q 2014 Offshore market under heavy pressure TTS continues to explore new strategic opportunities to further strengthen the business, this may include sale of a part of the group, acquisition of new business or strategic cooperation with new partners 30

31 For further information, please visit us at TTS GROUP ASA 31