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Endúr Investor Presentation 2010
3593_rns_2010-08-19_ce683f27-f1dd-414c-81e9-6cb84e2af897.pdf
Investor Presentation
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"Hordaland på børs" – 19 August 2010
Bergen Group
- prepared for international growth
Pål Engebretsen, CEO
BERGEN
BERGEN GROUP
DISCLAIMER
This quarter Presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates and projections about global economic conditions, the economic conditions of the regions and industries that are major markets for Bergen Group ASA and its subsidiaries. These expectations, estimates and projections are generally identifiable by statements containing words such as "expects", "believes", "estimates" or similar expressions. Important factors that could cause actual results to differ materially from those expectations include, among others, economic and market conditions in the geographic areas and industries that are or will be major markets for Bergen Group's businesses, oil prices, market acceptance of new products and services, changes in governmental regulations, interest rates, fluctuations in currency exchange rates and such other factors as may be discussed from time to time. Although Bergen Group ASA believes that its expectations and the information in this Presentation were based upon reasonable assumptions at the time when they were made, it can give no assurance that those expectations will be achieved or that the actual results will be as set out in this Presentation. Bergen Group ASA nor any other company within the Bergen Group is making any representation or warranty, expressed or implied, as to the accuracy, reliability or completeness of the information in the Presentation, and neither Bergen Group ASA, any other company within the Bergen Group nor any of their directors, officers or employees will have any liability to you or any other persons resulting from your use of the information in the Presentation. Bergen Group ASA undertakes no obligation to publicly update or revise any forward-looking information or statements in the Presentation.
BERGEN
BERGEN GROUP
AGENDA
- Highlights the last 12 months
- Our activities in the Bergen area
- Internationalization and diversified ownership
BERGEN GROUP
BERGEN GROUP - INTRODUCTION
- Bergen Group is a maritime industrial group with main focus on the offshore industry and specialized vessels
- Founded in 2002 (named Bergen Yards until 2007) and listed on Oslo Stock Exchange with ticker BERGEN since June 2008
- Based on 30 maritime-related companies, each with a strong individual history.
- Headquartered at Marineholmen in Bergen
- Specialized competence within Shipbuilding, Maritime Service, Offshore and Technology
BERGEN GROUP
BERGEN GROUP
BERGEN GROUP - FOUR BUSINESS AREAS
SHIPBUILDING:
Bergen Group FOSEN Rissa
Bergen Group BMV Bergen
Bergen Group SHIPDESIGN Trondheim
MARITIME SERVICE:
Bergen Group LAKSEVÅG Bergen
Bergen Group KIMEK Kirkenes
Bergen Group SKJØNDAL Bergen
Bergen Group SIJO Bergen
Bergen Group HALSNØY Halsnøy
OFFSHORE:
Bergen Group ROSENBERG Stavanger
Bergen Group KIMEK OFFSHORE Kirkenes
Bergen Group HANØYTANGEN Bergen
Bergen Group ENGINEERING Bergen
TECHNOLOGY
Bergen Group DREGGEN Bergen
Bergen Group VEST ELEKTRO Fitjar
Bergen Group SKARVELAND Sunde
Bergen Group AMIA, Poland
Strategic locations along the Norwegian Coastal line
BERGEN GROUP
FINANCIAL HIGHLIGHTS
Strong performance in 2009
NOK 5,11 billion in operating revenue
(NOK 3,74 billion in 2008)
NOK 416 million in EBITDA
(NOK 191 million inn 2008)
EBITDA-margin of 8.1 %
(5,1 % in 2008)
BERGEN GROUP
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2010 - INCREASED MARGIN - REDUCED REVENUE
- An estimated reduction in operating revenue for 2010
- Strong overall EBITDA in Q1 2010 (8,3%)
- Satisfactory profit in all projects
- Offshore influenced by low order activity in 2009
BERGEN GROUP
BERGEN GROUP
BERGEN GROUP ON OSE
- Bergen Group moved from OB Standard to OB Match in December 2009
- Increased trade activity has continued through 2010
- Stock performance above OSE20 Industrials index.
Share performance of "BERGEN" last 12 months compared with OB Benchmark Index and OSE20 Industrials
BERGEN GROUP
BERGEN GROUP
RESTRUCTURING – FOCUS ON CORE BUSINESS
- Five non-core companies within Technology transferred to new organizational unit Business Development
- The remaining companies within Technology represents strong and profitable core business units
- New company added to Technology: manpower service for shipbuilding and offshore.
BERGEN GROUP
BERGEN GROUP
FOCUS ON CORE BUSINESS
BERGEN GROUP
BERGEN GROUP
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BORDER AGREEMENT IN THE BARENTS SEA
- The historical border agreement in the Barents Sea in April 2010 has a tremendous long term potential
- Bergen Group with a well established position in the Northern Area
- on both side of the Norwegian/Russian border:
- Kirkenes
- Murmansk
- Harstad
- Today Bergen Group is one of the largest private owned employers in Finnmark
- Hammerfest-location under evaluation
BERGEN GROUP
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MAJOR CONTRACT WITH FJORD LINE
- Contract on two new cruise-ferries for Fjord Line values to NOK 1,65 billion
- Option for a third vessel signed
- Hulls to be build in Poland-outfitting and commissioning to take place at Bergen Group Fosen
- First delivery in spring 2012
BERGEN GROUP
BERGEN GROUP
STILL A FUTURE IN SHIPBUILDING
- High volume and strong margins
- EBITDA-margin of 13,5 % in Q1
- Contract on two new cruise-ferries for Fjord Line
- Increased focus on Ship Design
- will strengthen the yards market position
- Five deliveries to take place in 2010
- All of them very advanced offshore vessels
- Bergen Group Shipbuilding well positioned to strengthen our market position within the specialized vessels/Offshore/RoPax-segment.
BERGEN GROUP
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STRENGTHENING IN THE MANAGEMENT
-
New Chairman of the Board
Hans Olav Lindal took over as Chairman of the Board in June 2010. Lindal holds several non-executive directorships in companies within various sectors of the maritime industry, both nationally and internationally. -
Executive Vice President for the Maritime Service Division
Terje Arnesen joined the Group Management August 1st. Arnesen has broad international experience from the maritime industry. His latest position was CEO of Bennex Group. -
CEO at Bergen Group Rosenberg
Kristin Færøvik in place as new CEO in May. She has extensive experience from leading position in the offshore industry. Her latest position was CEO of Marathon Petroleum Norway. -
Managing Director for Bergen Group Engineering
Anita Høyen Haug took office on August 1st. She comes from a position as head of the Bergen office of Manpower Professional Engineering AS (formerly Tech Power AS).
BERGEN GROUP
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AGENDA
- Highlights the last 12 months
- Our activities in the Bergen area
- Internationalization and diversified ownership
BERGEN GROUP
15
OUR COMPANIES IN THE BERGEN AREA
BERGEN GROUP
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Bergen Group ASA
BERGEN GROUP BMV FOCUSING HIGH END TECHNOLOGY
- Bergen Group BMV is a leading international company in the construction of innovative and advanced ships for the offshore industry
- Bergen Group BMV to deliver 4 high quality offshore vessels during 2010
- Two newbuildings christened last week
- Ceo Coral: The most advanced seismic vessel ever build in Norway
- Island Enforcer: A state-of-the-art and a one-of-a-kind multipurpose OCV.
BERGEN GROUP
BERGEN GROUP
BERGEN GROUP DREGGEN IN NEW MARKETS
- Bergen Group Dreggen has quadrupled the annual revenues since 2005.
- Deliveries to customers world-wide
- Sales offices established in Brazil and in Singapore – two markets with exiting growth opportunities p
- Bergen Group Dreggen is now prequalified for direct deliveries to Statoil
BERGEN GROUP
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BERGEN GROUP HANØYTANGEN
- An attractive yard for all kind of rig modifications
- Unique dry dock facilities
- Carried out the biggest rig modification project in Europe in 2009
- Investments of NOK 150 mill finished last year
- increased capacity and flexibility
- High rig activity expected the next years to come
BERGEN GROUP
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HANØYTANGEN – FORMER PROJECTS
Heidrun and Troll 1993
Transocean Leader 1998
Transocean Searcher 2008
Transocean Arctic 2009
Troll B 1994-95
Acergy Piper (LB 200) 2007
Bjørvika-tunnelen 2005-2008
Polar Pioneer 2009
BERGEN GROUP
BERGEN GROUP
HANØYTANGEN AS AN INDUSTRIAL CLUSTER
- Hanøytangen on its way to become an important industrial cluster for maritime and offshore operations.
- External companies ready to establish activity at Hanøytangen
- Hanøytangen prepared to facilitate other Bergen Group-activities in the future.
Hanøytangen – illustration of a possible future scenario
BERGEN GROUP
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AGENDA
- Highlights the last 12 months
- Our activities in the Bergen area
- Internationalization and diversified ownership
BERGEN GROUP
BERGEN GROUP 22
OWNERSHIP AND INTERNATIONALIZATION
- In September 2009, Bergen Group opened up for diversified ownership as an possible tool for further growth.
- In August 2010, Spring Capital Resources Ltd flagged an possible future major ownership linked to a new convertible bond loan issued to Bergen Group.
- 10,5 % as of today – 25 % if conversion is carried out
- Process of mapping different alternatives for future cooperation to be carried out:
- complimentary business
- new strategic locations can generate growth
- internationalization of Bergen Group’s core knowledge
- partnership can strengthen the market position
- An open process to be concluded within next nine months
- Bergen Group with call options on the bond loan.
BERGEN GROUP
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SPRING CAPITAL RESOURCES LTD
- Spring Capital Resources Ltd is closely linked to Yantai CIMIC Raffles.
- Bergen Group and Spring Capital Resources Ltd are the two parts that now are mapping possible business opportunities
BERGEN GROUP
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Bergen Group Strategy
- Improve operational and market synergies through constantly increasing efficiency, service and quality in the group structure
- Increased focus on market orientation and product development
- Develop a stronger product portfolio within the value chains
- Stronger focus on concept development
- Continued growth, primarily within the high-end technology and engineering business
- Further strengthen the engineering capacity
- Building long term relationships towards customers
- Further strengthen the group's four business areas trough international integration/partnerships
BERGEN GROUP
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OUTLOOK AS SEEN BY END OF Q1 2010
- A challenging market situation about to improve - order backlog expected to increase
- Offshore-division with strengthened long term potential
- RoPax-contract will boost the development of tailor-made ship design
- Prepared for temporarily reduction in turnover – but maintain expectations of an acceptable profitability in 2010
- Bergen Group well prepared for long term growth:
- Strong offshore facilities with high capacity and core knowledge
- Successful industrialization of the shipbuilding-process within our core segments
- Ongoing process on focusing new geographical business areas and possible alliances.
BERGEN GROUP
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BERGEN GROUP
QUALITY THROUGH SERVICE AND INNOVATION
THANK YOU FOR YOUR ATTENTION!
www.bergengroup.no
BERGEN GROUP
BERGEN GROUP