Q1 Results th of May 2016

Transcription

1 TTS GROUP ASA Q1 Results th of May 2016 Toril Eidesvik, CEO Henrik Solberg-Johansen, CFO

2 TTS Group ASA Introduction new CEO Toril Eidesvik Master of laws / master programs in economy and project management More than 20 years experience from the shipping industry CEO in the stock listed companies Green Reefers ASA and EMS Seven Seas ASA Substantial board experience from a number of companies within the shipping and offshore industry Board member and chairman in the audit committee in TTS from

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

4 TTS Group ASA 1 st quarter headlines Improved consolidated performance Q vs Q Turnover MNOK 766 (593) Order intake MNOK 529 (301) EBITDA MNOK 26 (1) Cashflow from operations 100% owned companies +MNOK 60 Substantial orders for shiplift (MNOK 100) and hatch covers (MNOK 94) announced in April Orderbook BNOK 3.6, of which BNOK 2 for 2016 delivery Significant Offshore improvement, Q EBITDA positive Strategy unchanged. Improvement program continues 4

5 Ship-type focus organization Current TTS product portfolio (2015 turnover and EBITDA) Product expansion opportunities RoRo/Cruise/Navy Turnover: NOK 641m EBITDA: NOK 62m Container/Bulk/ Tank Turnover: NOK 973m EBITDA: NOK 141m Multipurpose/ General Cargo Turnover: NOK 259m EBITDA: NOK -13m Shipyard Solutions Turnover: NOK216m EBITDA: NOK 18m Services Turnover: NOK 591m EBITDA: NOK 76m Offshore Turnover: NOK 359m EBITDA: NOK -102m Cargo handling solutions for Car carriers Cruise ships Specialized vessels Port handling equipment Cruise (davits, tenders, gangways, winches, new innovations) Navy (hangar doors, turntables, cranes, hatch covers) Cargo handling solutions incl. winches, cranes and hatch covers for Container ships Bulk carriers Tankers Cargo control systems Lashing bridges Lashing gears Lifeboats Rudders and Steering Gears Heavy lift cranes, mooring winches, hatch covers and side loading systems for Multipurpose vessels Cargo ships E-cranes Increased leg encircling crane portfolio Increased lattice boom crane portfolio Cargo control systems Production lines and systems for Shipyards cargo handling Transfer systems for docking and launching. Green scrapping Redesign STRI + TTS existing products Complete services within maintenance, spare parts interval agreements life time services Increased # spare parts hubs Increased # servicing hubs Offshore cranes for offshore vessels offshore installations Increased AHC crane size range ROV handling systems Skidding systems Moon Pool HC Elevator System Hangar and ROV side Doors Key advantages of the ship type focus Key account 20% of ship owners owns 80% of the global fleet One face to the market More value per sale, packaged deliveries Broader service offering per ship type -> Leading to TTS as total service provider Product platform to support life time services - > TTS a total Service provider

6 High visibility on 2Q-4Q 2016 revenue Order backlog for delivery 2016 TTS Group excl. Offshore Bulk market depressed except for upside in mega-size BNOK tonnage Car carriers market softer, but stronger focus on Ropax and liner RoRo Mega container saturating. Shift to feeder TEU High activity on cruise building in Europe and China High expectation on near shore work boat heavy lift Tank and Gas peak ended Increased risk of cancellations for bulk. Indications of increased postponement risk for car carriers

7 Heading towards 2016 financial projection Revenues for TTS Group excluding Offshore expected to grow to NOK 3,0-3,2 bn in 2016 EBITDA margin for TTS Group excluded Offshore expected to reach 4-6%, in line with earnings profile expected to be back-loaded TTS expect a modest growth in revenues for the Group excluding Offshore into 2017 with ambition for margins to approach industry average levels Offshore excluded as the offshore market is expected to remain weak. However TTS exposure considerably reduced. Key financials - TTS Group excluding Offshore

8 Agenda 1 st quarter headlines and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Summary 8

9 TTS Group ASA Profit and loss statement 1st quarter Full year MNOK Turnover EBITDA Operating profit Net financial items Profit/loss before tax Net result continued business Net result incl discontinued business of which attributable to equity holders of which attributable to non-controlling interest 2-9 -

10 TTS Group ASA Order intake and order backlog Order intake per quarter including 100 % of JV*) Book to bill = Order intake / Revenues * ) From 2Q2015 THH is consolidated into Group. Order intake Q2015: THH + TBH; from 2Q2015: TBH only Order backlog per is MNOK 3886 including 100 % of JV company Divided per year of delivery

11 TTS Group ASA Turnover and EBITDA development Note: - EBITDA Q of MNOK 36 is excl. positive pension effect of MNOK 101, of total EBITDA MNOK EBITDA Q of MNOK 34 is excl. one off THH adjustment effects of MNOK 104, of total EBITDA MNOK EBITDA Q of MNOK 8 is excl. one off Offshore inventory write down of MNOK 20, of total EBITDA MNOK-12 - EBITDA Q of MNOK 47 is excl. negative effect from Offshore restructuring cost of MNOK 18, of total EBITDA 29

12 Marine segments positive with potential for further improvement Revenue (MNOK) Q Q Q Q Q Q Q Q Q Q Q Q Q Adjusted EBITDA (MNOK) ( 5) ( 43) ( 35) ( 26) ( 30) ( 26) ( 28) ( 24) ( 8) ( 28) ( 4) 5 21 ( 40) ( 75) Q Q Q Q Q Q Q Q4 2014* Q Q2 2015** Q3 2015*** Q Q **** * Adjusted for pension effect of NOK 101m (37m in Offshore) and STX settlement (NOK 23m in Offshore) ** Adjusted for one-off from consolidation of THH (NOK 104m) *** Offshore adjusted for NOK 20m inventory write down **** Offshore adjusted for NOK 18m China restructuring Marine BU Offshore

13 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 172, increase mainly in 50% owned subsidiaries Total consolidated cash MNOK 298 per , of which MNOK 246 is in 50% owned subsidiaries Unutilized credit facilities MNOK 128 Group equity ratio including subordinated convertible debt is 32,3 % at the end of Q Covenants at Q are met Equity, of which: Equity holders Non-controlling interest Total

14 TTS Group ASA Cash flow / Working capital / Interest bearing debt Cash flow Year MNOK 1Q16 1Q Net cash flow from operations Net cash flow from investme0nts 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 Net interest bearing debt MNOK Q1/16 Q4/15 Q3/15 Q2/15 Q1/15 Q4/14 Q3/14 Q2/14 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

15 TTS Group ASA Turnover and EBITDA Q TTS Group ASA Turnover: MNOK 766 EBITDA: MNOK 26,2 RoRo/Cruise/Navy Container/Bulk/ Tank Offshore Multi Purpose/ General Cargo Shipyard Solutions Services Turnover: MNOK 143 EBITDA: MNOK 10,5 Turnover: MNOK 270 EBITDA: MNOK 4,1 Turnover: MNOK 70 EBITDA: MNOK 4,8 Turnover: MNOK 71 EBITDA: MNOK -4,7 Turnover: MNOK 69 EBITDA: MNOK 7,0 Turnover: MNOK 138 EBITDA: MNOK 12,7

16 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 Strong position in a PCTC-market passing its peak, but with higher activity for Ropax and RoRo Increased activity within the cruise sector Solid order book based on proven solutions, and repeat orders from key customers within the RoRo market gives basis for expected high activity through 2016

17 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 order backlog in equity consolidated investments in China Increased demand for capsize-plus bulk, but medium sized bulk remains challenging Saturation of market for mega container ships replaced by container feeder vessels Good tanker new build activity South Korea regains market position in merchant shipbuilding at the cost of heavy price pressure

18 Offshore Cranes for offshore vessels and offshore installations. Q1 Periodic Full Year MNOK Turnover EBITDA Order backlog Capacity adjustments continue through 2016 to adapt cost to order book Risk and exposure at a controllable level in a harsh offshore market

19 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 Q2016 activity slightly behind 1Q2015 due to delays in some projects Based on the order backlog, activity is expected to pick up through the remaining quarters of 2016 Market potential promising, both for multi purpose heavy lift and for heavy lift installation vessels

20 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 and acceptable margins Promising market prospects for ship-lifts and other shipyard systems, where TTS has a strong market position New shiplift order (MNOK 100) announced in April TTS Liftec delivering positive results, adapting to a market with increased competition

21 Services Complete services within maintenance, including spare parts, interval agreements and life time service. Q1 Periodic Full Year MNOK Turnover EBITDA * Q 2016 turnover and EBITDA on level with the same quarter last year Current installed base of approximately units of equipment on approximately 8000 vessels is a good basis for further services business development

22 TTS Group ASA Shareholder structure at May 10 th 2016 Skeie Technology AS 26,16 % Rasmussengruppen AS 13,29 % Skeie Capital Invest 4,85 % Holberg Norge 4,34 % Barrus Capital AS 4,00 % Skagen Vekst 3,51 % Pima AS 2,78 % Cipi Lamp Ucits 2,58 % Mertoun Capital AS 2,04 % Pharos Sicav 1,92 % 10 largest shareholders 65,47 % Other 34,53 % Total 100,00 % Skeie Technology AS, Skeie Capital Investment AS and members of the Skeie family hold in total 32,02%. 22

23 Agenda 1 st quarter headlines and market outlook 1 st quarter consolidated accounts Segment info Shareholder structure Summary 23

24 Summary Strong order book covering >90% of remaining 2016 new build activity prognosis Positive quarter EBITDA and net earnings Operational improvement processes on track Positive view on significant market segments Offshore market expected to remain slow Process initiated in February 2015 to explore strategic opportunities is still ongoing

25 TTS GROUP ASA