WWH Capital Markets Day
15 September 2016
Dag Schjerven, President & CEO WMS Group
• WMS portfolio strategy
Brian Stringer, CEO Survitec Group Ltd
• A company presentation
The world's largest maritime network
~ 25% fleet penetration (equipment installed)
WMS' business reliant on world economy growth - Record of low customer credit defaults
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Actual and projected GDP growth for selected countries / regions, 2009-2021F |
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| 5.4% |
Prognosis |
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Percent of
world GDP* |
CAGR
2010-15 2016-21 |
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| 4.2% |
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RoW |
6.1% |
3.9% |
3.5% |
3.5%
3.3% 3.4% 3.1% 3.2% |
3.5% 3.6% 3.8% 3.8% 3.9% |
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Australasia" |
0.9 % |
2.7% |
2.8% |
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Korea |
1.4% |
3.5% |
3.0% |
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ASFAN |
9.3% |
5.5% |
5.2% |
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Latin America and
Caribbean*** |
1.9% |
3,5% |
2.5% |
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Japan |
0.6 % |
1.3% |
0.5 % |
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Middle East and Africa |
9.2% |
4.0% |
3.7% |
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Brazil |
$-3.1%$ |
2.1% |
0.5 % |
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China |
36.2% |
8.3 % |
6.1% |
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EU |
9.7% |
1.2% |
1.9% |
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USA and Canada |
12.6% |
2.1% |
2.2% |
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India |
17,2% |
7.3% |
7.6% |
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Russia |
$-1.8%$ |
1.8% |
0.7% |
0.0%
09
10
12
13
15
11
14 |
16
17
18 |
19 20 21 |
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) Based on purchasing power parity (PPP) for 2016
) Australasia is Australia. New Zealand and Papua New Guinea
** ) Latin America and Caribbean excl. Brazil
Source: IMF, WEO April 2016 |
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Ambition to regain some of the strong growth experienced from 2005 to 2008
- Seek growth through acquisitions and partnership in core areas
- Reduce ownership in non-core areas
- Continue to develop business areas synergies across current structures
Strategic direction
Reducing ownership in non-core areas
Strategic execution
- Sold to Trident Maritime Systems
- Agreement signed 10 August 2016
- Sales price USD 64m
- P&L effect USD -12m
- Completion Q3'16
Strategic direction
Under consideration following internal restructure
Strategic execution
- Merging Wilhelmsen Safety with Survitec Group Ltd
- Agreement signed 23 June 2016
- WMS will take 20% ownership in Survitec
- Net cash proceed ~USD 110m
- P&L effect ~ USD 60m
- Completion Q4'16
Photo: Liferaft exchange WSS service station – Marine Safety Source: WWH - WSS
WMS revenue outlook
- Expect ~40% topline reduction following strategic change in portfolio
Strategic direction
- Seek growth in remaining segments
- Organic growth
- Innovation
- Acquisitions/partnerships
Photo: Timm ropes – Marine Products Source: WWH - WSS
Welcome to Brian Stringer - CEO Survitec Group Ltd
Thank you!
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YOUR SURVIVAL, OUR TECHNOLOGY
Survitec Group – The Global Business
MARINE DEFENCE OFFSHORE
Brian Stringer, CEO Survitec Group Ltd A company presentation
WORLD LEADER IN CRITICAL SAFETY AND SURVIVAL SOLUTIONS
- Owned by Onex Corporation, Toronto, Canada
- Revenue \$410m
- Track-record of sales and EBITDA growth
- Combination of organic and acquired growth
- Sales CAGR of 13% since 2007;
- 2000+ employees worldwide
- 7 manufacturing locations
- Headquartered in Birkenhead, UK.
- Largest service centre network:
- Over 50 Survitec owned, 500+ partner owned
- Covering 2000+ ports
- Over 160 years of innovation and market firsts
SURVITEC GROUP – PRODUCTS OF LAST RESORT
SURVITEC GROUP – PRODUCTS IN ACTION - VIDEO
SURVITEC GROUP TODAY – KEY CHARACTERISTICS
WHO WE ARE: MARKET LEADERS IN SAFETY AND SURVIVAL
Our installed base Our positioning
The markets we operate in
- Large, protected and diverse end-markets
- Strict regulation
- Limited competition
- High barriers to entry
- Survival solutions are protected from end-market cyclicality
Source: Company information
160 YEARS OF INNOVATION AND MARKET FIRSTS…
MAIN MARKET OUTLOOK
| MARKET |
OUTLOOK |
OPPORTUNITIES / RISKS |
| Marine |
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Survitec OEM products (e.g. liferafts) delivering
stable growth
Selling SCI lifeboat servicing to marine customers
Market will improve but share is being achieved
Continued softness in third party product distribution
(lower-margin business) and new build |
Defence
&
Aerospace |
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Strong pipeline of tangible opportunities
Continued shift from product focus to through-life
services
Geographical & adjacent product expansion |
| Oil & Gas |
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Leveraging customers' price consciousness to
increase share-of-wallet
Market downturn to be offset by share increase
Prolonged market softness due to low oil price
environment. Cost focus everywhere |
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SURVITEC AND WILHELMSEN SAFETY – AN ATTRACTIVE COMBINATION
THIS IS A UNIQUE OPPORTUNITY TO CREATE A MARKET LEADER WITH THE BEST FROM TWO WORLDS
First mover as a total Survival/ Safety provider
- Accelerated growth opportunities
- Unique offering for customers
- Unique global footprint and customer reach
Complementary models
- Local sales presence and global key account mgmt. structure
- Complementary customer base and offering
- From product to solution supplier
Unparalleled synergy opportunities
- Strong revenue synergies from utilizing current strengths
- Increased ability to maintain and grow margins
- Unique R&D competence and product offering
HIGHLY COMPLEMENTARY PORTFOLIOS WILL CREATE A COMPLETE 'CRADLE TO GRAVE' SAFETY PROVIDER
SCALE AND STRONG LEADING POSITIONS IN MARINE AND DEFENCE
Wilhelmsen Safety reinforces Survitec's position as the leading player in critical, non-discretionary lifesaving equipment
Source: Company information
An unparalleled owned service network in all the leading global ports
An unparalleled owned service network in all the leading global ports
Overview of synergies
- Overall, validated \$15m of year cost synergies
- The liferaft swap out includes c.15k non-Survitec branded liferafts to be replaced with Survitec extended service liferafts
- The synergies are seen as having a very high level of deliverability
- Sales revenue synergies estimated to be worth circa \$30m over a three year period
Significant synergies which have been prudently calculated but will be aggressively realised
WHERE WE SHOULD BE IN TWO YEARS: A Unique Customer Experience That Fuels Ambitious Growth Targets
DELIVERING EXCEPTIONAL SHAREHOLDER VALUE