TTS Group ASA. Presentation Q Oslo May 15 th, Johannes D. Neteland Arild Apelthun

Transcription

1 TTS Group ASA Presentation Q Oslo May 15 th, 2013 Johannes D. Neteland Arild Apelthun

2 Agenda 1 st quarter headlines Order intake and order backlog Business segments Market development 1 st quarter consolidated accounts Shareholder structure Summary 2

3 Agenda 1 st quarter headlines 3

4 TTS Group ASA 1 st quarter 2013 Summary Earnings per share in the 1 st quarter was NOK Turnover of MNOK 732 in the 1st quarter. The activity increased in all divisions, even if the majority of the growth in turnover compared to last year was due to the acquisition of NMF. EBITDA of MNOK 25 in the 1st quarter is influenced by restructuring costs, postponing and additional costs in projects, and a difficult market for service. Order intake in the 1st quarter of MNOK 492. Main orders relate to offshore cranes and car carriers. A strategic order for London Gateway was secured in the Port & Logistic Division which will be an important reference project for other container terminals that need to increase efficiency in internal transportation. The Offshore market is still strong with many pending projects. Both the Marine and Port markets showed improvement in the quarter, and contracting of new ships increased by about 30% compared to last year. Order backlog at the end of 1st quarter 2013 was MNOK Cancellations in the quarter were MNOK 10. 4

5 TTS Group ASA Turnover and EBITDA 1 st quarter Turnover MNOK EBITDA MNOK ,1 53,0 0 Q Q Q Q EBITDA margin 3,7% 9,7% * Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities. 5

6 TTS Group ASA Historical turnover development MNOK Marine Offshore & Heavy Lift Port & Logistics Services Total 6

7 Agenda 1 st quarter headlines Order intake and order backlog 7

8 TTS Group ASA Order intake MNOK Q Q Q Q Q

9 MNOK MNOK TTS Group ASA Order Backlog Q Order intake and backlog Q Several major contracts for post panamax car carriers have been secured in the 1 st and 2 nd quarter Primarily offshore cranes have been secured in Offshore and Heavy lift. First offshore rig contract for NMF in the 2 nd quarter Strategic important order in Port secured in the quarter Order backlog per Q By year of delivery MNOK *Order reserve includes 50% of Joint Ventures. Also note that backlog for Offshore and Heavy lift has been corrected with MNOK 50 in the quarter Q Orderintake Cancelled Q Q Marine Backlog* Offshore & Heavy Lift Port Services Total

10 TTS Group ASA Order cancellation Q Q MNOK ,5 10 5,7 0 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q

11 TTS Group ASA Order backlog* per MNOK Marine Offshore & Heavy Lift Port & Logistics Services TTS Group *Order reserve includes 50% of JV 11

12 TTS Group ASA Order backlog* by division Q Q MNOK Marine Offshore & Heavy Lift Port & Logistics Services Total Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 *Order reserve includes 50% of Joint Ventures. 12

13 Agenda 1 st quarter headlines Order intake and order backlog Business segments 13

14 Marine RoRo equipment, Hatch Covers, Side Doors, Cruise and Mega Yachts. Winches and Deck Equipment, Cranes and Davits for ships. Increased activity in the Marine division despite a reduction of revenue of MNOK 38. The change in the joint venture structure has influenced the numbers by MNOK 85. The financial result reflects restructuring in Germany and postponement and additional costs related to projects. Order backlog at the end of the 1st quarter was MNOK The reduction from last year relates mainly to standardized deck equipment in both Joint Ventures and wholly owned subsidiaries. The market for specialized vessels remains steady and several major contracts for post panamax car carriers have been secured in the 1 st and 2 nd quarter. Increased market share of winches in China after including the winch range in the JVs. Almost 30% growth in new building contracts in the 1 st quarter compared to

15 TTS Joint Venture operations in China Joint Ventures are recognized in the financial statements according to the equity method. TTS Group includes only its share (50%) of profit after tax in financial reports. Market for hatch cover has been significantly lower, and there are a number of projects being delayed resulting in a relatively lower turnover in the first quarter. Order backlog slightly down from end of 2012, however order intake on winches looks promising as a new area of growth Turnover Joint Ventures China Q Backlog Joint Ventures China Q Numbers are on a 100% basis and in MNOK. 15

16 Offshore & Heavy Lift Offshore and heavy lift cranes, Hangar and watertight doors Turnover in the 1st quarter has increased with MNOK 181 compared to last year which is mainly due to the acquisition of NMF. The margins are significantly lower than last year due to additional cost in completion of projects and low margin on heavy lift cranes. Order backlog at the end of the quarter was MNOK 944. The change is mainly due to the acquisition of NMF. Signed the first offshore rig contract for NMF in the 2 nd quarter. Increased activity for crane packages, several major offshore projects in tender. Within offshore the market remains good. There is still high activity within rig and offshore vessels. While the heavy lift crane market is still slow, there are a number of interesting projects within super heavy lift windmill cranes. 16

17 Port and Logistics Equipment for Shipyards, Terminals and Industry. Turnover increased significantly compared to 1st quarter last year where it was unusually low. The volume is now above break even, but margins in the quarter have been influenced by delays and additional costs on completion of projects. A key strategic contract at London Gateway has been secured. Order backlog at the end of the 1 st quarter 2013 was MNOK 210, an increase of MNOK 45 from 1st quarter For Port & Logistics Division the market has improved somewhat where some additional activity within container terminal investments has been made. Within repair yards the market for ship lifts and transfer systems is promising. However, the investment decisions in infrastructure generally take long and thus the visibility on short term remains low. 17

18 Services Spare parts, service and maintenance Turnover was up 8% compared to 1st quarter 2012, in spite of a slow service market due to low profitability in shipping. The increase has come in service work, however sale of spare parts has been affected by the slow market and this effect influence the margin in the quarter. Market is not expected to improve significantly in the short term. 18

19 Agenda 1 st quarter headlines Order intake and order backlog Business segments Market development 19

20 New Building Contracting 28,5 % increase in Number of Ships Q Q Source: IHS Global Limited. (Maritime Insight) 20

21 New Building Contracting 140 Contracting of Top-4 Ship Types Bulker Q Bulker Q Container Q Source: IHS Global Limited. (Maritime Insight) Container Q Tanker Q Tanker Q Offshore Q Offshore Q

22 World fleet outlook Number of new ship orders 22

23 World fleet outlook Orders, deliveries and removals of ships 23

24 Number of v essels Outlook Offshore Vessels Global market AHTS, 4,000 AHT and PSVsAHTS, AHT and PSVs Annual growth rate 8.8% 3,500 3,000 2,500 2,000 1,500 1, e 2014e 2015e PSV AHTS AHT Source: DNB 24

25 Number of rigs Outlook Rig Market Global market ,000 Annual growth rate: 5.0% Source: DNB e 2014e 2015e Jackup s Semisubmersible s Drillships 25

26 e 2013e Offshore market E&P spending trends USDbn 700 USD/bbl E&P spending Brent crude oil price Source: DNB 26

27 Agenda 1 st quarter headlines Order intake and order backlog Business segments Market development 1 st quarter consolidated accounts 27

28 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 Total net result included divested business Note: Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities. 28

29 TTS Group ASA Turnover as per MNOK Marine Offshore & Heavy Lift Port & Logistics Services 500 TTS Group Q Q

30 Changes due to JV transaction company Hua Hai AB is part of the Marine Division Quarterly Accumulated effect Revenue TTS ex JV JV transaction Company Revenue TTS ex. JV JV transaction Company Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 30

31 TTS Group ASA EBITDA as per MNOK 60,0 50,0 53,0 Marine Offshore & Heavy Lift Port & Logistics 40,0 34,6 Services TTS Group 30,0 25,1 20,0 14,9 12,8 15,9 10,0 5,9 7,4 0,0 1,0 Q Q ,0-5,7 * Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities. 31

32 TTS Group ASA Balance Sheet MNOK Non-current assets Current assets TOTAL ASSETS Equity Interest bearing liabilities Other liabilities and provisions TOTAL EQUITY AND LIABILITIES Total assets at MNOK with an equity ratio of 38%. Working capital increased in the quarter primarily related to offshore and heavy lift crane projects. 32

33 TTS Group ASA Equity share development 50,0 Percent 45,0 44,8 44,8 40,0 38,3 35,0 33,8 30,0 28,3 25,0 25,2 24,8 23,5 23,3 22,6 23,5 22,4 22,9 20,0 15,0 10,0 5,0 0,0 Q Q Q Q Q Q Q Q Q Q Q Q Q * Restated from Q due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities. 33

34 Q Q Q Q Q Q Q Q Q q Q Q Q Q Q Q Q TTS Group net working capital development Net working capital development 15,0 % ,0 % 5,0 % Working capital increased during Q1 from negative 126 to negative 31. Main increase in working capital relate to increased working capital requirements in offshore business ,0 % Net working capital Total asset NWC % of total assets ,0 % ,0 % ,0 % 34

35 TTS Group ASA Consolidated cash flow and net interest bearing debt YTD MNOK Net cash flow from operations Net cash flow from investments Net cash flow from financial activities Net change in cash (incl. translation adjustments) The negative cash flow is mainly due to increased working capital. 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 assets reduced with MNOK 81 in the quarter. Gross debt changes relates to overdraft facilities in Korea and China and changes mainly relate to currency fluctuations. Convertible bond was MNOK 95 at end Q Unchanged from year end MNOK Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 Short term interest b. debt Long term int. bearing debt Convertible Bond(*) Total Cash Net interest b. debt(*) (*) Convertible loan included at nominal value (*) Negative indicates asset position 35

36 Agenda 1 st quarter headlines Order intake and order backlog Business segments Market development 1 st quarter consolidated accounts Shareholder structure 36

37 TTS Group ASA 10 largest shareholders at 6th of May 2013 Rasmussengruppen AS 13.29% Skeie Technology AS 10.31% Lesk AS 6.13% Stisk AS 6.13% Skandinaviska Enskilda 5.88% Barrus Capital AS 3.99% Skagen Vekst 3.72% Skeie Capital Invest 2.92% JPMCB Swedish Handelsbanken Nordic 2.87% Tamafe Holding AS 2.49% Total 57.73% 37

38 Agenda 1 st quarter headlines Order intake and order backlog Business segments Market development 1 st quarter consolidated accounts Shareholder structure Summary 38

39 Summary Generally low order intake due to weak market, but some strategically important orders have been secured in all divisions. Previous strategic moves have rendered good results: - Increased market shares for winches in China after included the winch range in the JVs - Several major orders for post panamax car carriers - Secured strategic important order for our cassette system for London gateway. - Several bids for crane packages in process Underlying market improved somewhat in the quarter, with 30% increase in new building orders compared to 2012, which is promising for future quarters Weak results influenced by restructuring costs, postponing and additional costs in projects, and a difficult market on service. 39

40 40