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Nekkar Investor Presentation 2010
3669_rns_2010-08-19_41ff8dff-efb3-4a03-8b15-aebcc041aa87.pdf
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TTS Group ASA
Presentation
TTS Group ASA
Q2 2010
Bergen
August 19, 2010
Johannes D.-Neteland
Agenda
- 2nd quarter consolidated accounts
- Business segments
- Shareholder structure
TTS
Agenda
- 2nd quarter consolidated accounts
TTS
TTS Summary
2nd quarter 2010
- Earnings per share in the 2nd quarter was - 0.05 NOK.
- EBITDA increased from first quarter to MNOK 21.6. Improvement in all 3 divisions.
- Turnover in 2nd quarter decreased by 10.8 per cent compared to last year, predominantly due to lower activity in Energy.
- Order intake was MNOK 759 in Q2, highest since Q3 2008.
- Order backlog 30 June was NOK 3 789, a decrease of approx. 163 MNOK during the quarter.
- Improved market conditions.
TTS
TTS Group
Turnover and EBITDA, 2nd quarter 2010
Turnover
MNOK
EBITDA
MNOK
TTS
TTS Group
Profit and loss statement, 30.06.2010
| MNOK | 1^{st} half-year | Year | |
|---|---|---|---|
| 2010 | 2009 | 2009 | |
| Turnover | 1 677 596 | 2 026 863 | 3 825,3 |
| EBITDA | 22 749 | - 6 256 | -84,3 |
| Operating profit | - 3 794 | - 126 456 | -230,8 |
| Net financial items | - 44 596 | - 39 226 | -81,1 |
| Profit/loss before tax | - 48 390 | - 165 685 | -311,9 |
| Net profit/loss | - 28 920 | - 146 509 | -248,5 |
TTS
TTS Group
Balance sheet, 30.06.2010
| MNOK | 30.06.2010 | 30.06.2009 | 31.12.2009 |
|---|---|---|---|
| Fixed assets | 1 569 363 | 1 454 833 | 1 550 755 |
| Current assets | 2 063 976 | 2 730 607 | 2 138 720 |
| TOTAL ASSETS | 3 633 339 | 4 185 440 | 3 689 475 |
| Equity | 899 621 | 835 296 | 935 883 |
| Long term liabilities | 494 339 | 610 213 | 452 876 |
| Current liabilities | 2 239 379 | 2 739 931 | 2 300 715 |
| TOTAL EQUITY AND LIABILITIES | 3 633 339 | 4 185 440 | 3 689 475 |
| Interest-bearing debt | |||
| Current | 611 516 | 671 130 | 578 152 |
| Long term | 469 068 | 587 325 | 452 390 |
| Total | 1 080 584 | 1 285 455 | 1 030 542 |
| Cash in hand | 196 055 | 219 711 | 191 907 |
| Net interest-bearing debt (deposits) | 884 529 | 1 038 744 | 838 632 |
TTS
TTS Group
Consolidated cash flow and net interest bearing debt
| MNOK | Q2 10 | Q2 09 | 2 009 |
|---|---|---|---|
| Net cash flow from operations | 7.7 | -460.4 | -359 |
| Net cash flow from investments | -19.1 | -31.4 | -110 |
| Net cash flow from financial activities | 17.3 | 448.1 | 407 |
| Net change in cash (incl translation adjustments) | 5.9 | -43.8 | -62 |
| Cash and bank deposits at the start of the period | 191.9 | 267.2 | 267 |
| Cash and bank deposits at the end of the period | 196.1 | 219.7 | 192 |
- Cash flow from operations including working capital is marginally positive
-
Still significant tied-up capital related to finished goods
-
Net interest bearing debt is slightly up during the quarter
- Compared to Q2 2009 it is a reduction of 162.7
| MNOK | Q2 10 | Q1 10 |
|---|---|---|
| Short term interest b. debt | 612 | 608 |
| Long term int. bearing debt | 469 | 455 |
| Total | 1081 | 1 063 |
| Cash | 196 | 188 |
| Net interest b. debt | 885 | 875 |
TTS
TTS Group
Net working capital development
- Total assets are down 56 MNOK compared to Q4 2009
- The working capital increased slightly during the quarter.
- The effort to sell cancelled products continues, especially focused on selling land rigs. Despite several leads, the sale has so far not been concluded.
Definition net working capital: Current assets (excl bank deposits) - current liabilities (excl. Short term debt to credit institutions)
TTS
TTS Group ASA
Equity share development
TTS
TTS Group
Turnover per 30.06.2010
TTS
TTS Group
EBITDA per 30.06.2010
TTS
TTS Group
Order backlog 30.06.2010
MNOK
TTS
TTS Group
Order Backlog by division
TTS
TTS Group
Order intake last 4 quarters
TTS
Order Backlog Q2 2010
Order intake and backlog Q2 2010
Order backlog per Q2 2010 By year of delivery
| MNOK | Q2 2010 | Backlog | ||
|---|---|---|---|---|
| Order-intake | Cancelled | Q1 2010 | Q2 2010 | |
| Marine | 519 | 73 | 3337 | 3166 |
| P&L | 28 | 208 | 156 | |
| Energy | 212 | 407 | 467 | |
| Total | 759 | 73 | 3952 | 3789 |
- Take-out of MIPPSA and DONETSK 350 MNOK
TTS
Order cancellation Q1 2009 – Q2 2010
TTS
TTS Group ASA
Historical development turnover
TTS
Agenda
- 1st quarter consolidated accounts
- Business segments
TTS
Ongoing initiatives to improve earnings
- Group wide initiatives
- Reorganization of TTS from five to three divisions with the aim to:
- Reduce cost and duplications
- Improve market reach and coordination
- Improve and bundle product offering
- Consolidation within the divisions:
- Merger of companies
- Reduction of employees
- Working capital optimization project to reduce working capital.
- Sale of cancelled products to reduce tied up capital.
TTS
Marine
- RoRo equipment, Hatch covers, Side Doors, Cruise and Mega Yachts
- Winches and deck equipment
-
Cranes and Davits for ships
-
Strong order intake in the second quarter, but still some cancellations.
- Improved EBITDA compared to second quarter last year.
- Continued strong growth in China.
- Relatively low activity in the Service market.
- Growing number of new builds is expected to give improvement in market conditions.
TTS
World fleet outlook
Contracting, incl. Prognosis
Database Date: 10-08-03
TTS
World fleet outlook
World Fleet Changes
Database Date: 10-08-03
TTS
Weekly newbuilding contracts 2010
TTS
Port and Logistics
Equipment for Shipyards, Terminals, and Industry
- Good operation during the quarter.
- Several larger projects delivered during the quarter.
- No big orders in the quarter, but several interesting projects under evaluation.
- More activities in the terminal equipment market.
TTS
Ongoing initiatives to improve earnings
Marine and Port & Logistics divisions
- Continue to move production of standard products to China.
- Enhance and grow Service operations. Opening service operation in China in Q2. Will continue to expand offering.
- Consolidate Germany operations to enhance operations and adjust cost base to the future market.
- Improve market reach and efficiency. Offer a range of products to same client.
TTS
Energy
Rigs and Drilling equipment. Offshore and subsea handling equipment
- Improved earnings from last year but low profitability on existing orders and low activity resulting in a loss in the quarter.
- Market activity increasing but still uncertain in the short term. Booked a drilling package for a Jack-Up and a large offshore crane contract in the quarter.
- No cancellations in the quarter.
- Reduced cost base, and continuous evaluation of capacity, balancing capability with the market.
TTS
Total rig market
Source: DnB NOR Markets
TTS
Total supply vessel fleet
By construction year
Total supply vessel fleet - Construction year
Source: ODS-Petrodata
AHTS PSV
Total PSV fleet - Construction year
Source: ODS-Petrodata
Newbuilds Delivered
Total AHTS fleet - Construction year
Source: ODS-Petrodata
Newbuilds Delivered
Per May 2010
TTS
Spot Rates
PSV Vessels
Source: RS Platou
TTS
Spot Rates
AHTS Vessels
Source: RS Platou
TTS
Ongoing initiatives to improve earnings
Energy division
- Continue to consolidate of operations in Norway. Reduce costs to adjust to activity level while maintaining competence.
- Finished development of products to take advantage of expected return in market.
- Enhance market reach and offering.
TTS
Agenda
- 1st quarter consolidated accounts
- Business segments
- Shareholder structure
TTS
TTS Group ASA
10 largest shareholders per 17 Aug 2010
- Rasmussengruppen 14.27%
- Skeie Technology 11.97%
- Scania Industrier ASA 9.01%
- Lesk AS 7.11%
- Stisk AS 7.11%
- Skandinaviska Enskilda Banken 4.42%
- Odin Maritim 2.90%
- Tamafe Holding 2.90%
- Barrus Capital 2.68%
- ITLUTION AS 1.98%
- TOTAL 64.35%
TTS