1. Val av ordfrande vid stmman 2. Upprttande och godknnande av - - PowerPoint PPT Presentation

Välkommen till Rederi AB TransAtlantic Årsstämma 2015

• 1. Val av ordförande vid

stämman

• 2. Upprättande och

godkännande av röstlängd

• 3. Val av en eller två

justeringsmän

• 4. Prövning av om

stämman blivit behörigen sammankallad

• 5. Godkännande av

föredragningslista

• 6. Framläggande av:

(a) årsredovisningen och revisionsberättelsen för moderbolaget, samt koncernredovisningen och koncernrevisionsberättelsen. (b) Revisors yttrande huruvida riktlinjerna för ersättning till ledande befattningshavare följts. I anslutning därtill anförande av styrelsens

• rdförande, verkställande direktören och

affärsområdescheferna för Viking Supply Ships och TransAtlantic.

Tom Ruud

Verkställande direktör och koncernchef

TransAtlantic in Brief

• Two business areas:
• TransAtlantic (TA), HQ Gothenburg
• Viking Supply Ships (VSS), HQ Copenhagen
• About 800 employees
• 34 vessels, 21 within TA and 13 within VSS
• Listed on the NASDAQ OMX Stockholm,

segment Small Cap

• 3,501 shareholders (YE 2014)

2014 - Highlights

Rederi AB TransAtlantic:

• Equity issue of SEK 148
• Further restructuring to establish two

independent businesses

Viking Supply Ships:

• Completion of the Kara Sea project drilling

season 2014

• Refinanced three loan facilities and significantly

improving the debt maturity.

• Significant contract awards despite market

downturn.

TransAtlantic:

• Turnaround
• Profitable business model for growth
• RoRo/Container Feeder strategy

Tomas Bergendahl

Finansdirektör

5 Year Summary

Operational profit/loss Group

• 121
• 272
• 327
• 137

296

• 400
• 300
• 200
• 100

100 200 300 400 2010 2011 2012 2013 2014

MSEK

5 Year Summary

Operational profit/loss Viking Supply Ships

45

• 110
• 119

50 345

• 200
• 100

100 200 300 400 2010 2011 2012 2013 2014

MSEK

5 Year Summary

Operational profit/loss TransAtlantic

• 105
• 162
• 208
• 187
• 49
• 250
• 200
• 150
• 100
• 50

50 100 150 2010 2011 2012 2013 2014

MSEK

5 Year Summary

Financial position

0% 15% 30% 45% 60% 75% 90% 105% 120% 135% 150% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

2010 2011 2012 2013 2014

Equity ratio (left scale) Net debt ratio (right scale)

5 Year Summary

Change in cash balance

637 548 361 381 450

• 200
• 100

100 200 300 400 500 600 700 800 900 2010 2011 2012 2013 2014

MSEK

Cash balance Operating cash flow

Key figures 2014

TransAtlantic Group TA VSS

(MSEK) 2014

2013 2014 2013 2014 2013 Net sales 3 190 2 925 1 293 1 787 1 897 1 138 Operational result 296

• 137
• 49
• 187 345

50 Result before tax 217

• 321
• 128
• 283

345

• 38

Operational cash flow 412 144 Cash balance 450 381 Total assets 5 260 4 884 Shareholders equity 2 042 1 749 Equity/asset ratio % 39 36 Debt equity ratio % 110 130

Viking Supply Ships

Head of Viking Supply Ships: Christian W. Berg

Strong financial results

• Net result of MNOK 292, compared to

MNOK -52 in 2013.

• Strong balance sheet, market value

adjusted equity ratio of 47%.

• Positive development on the back of

term contracts

• Successful completion of the Kara Sea project.
• Refinanced three loan facilities and significantly

improving the debt maturity.

• Significant

contract awards despite market downturn.

• Sold SBS Cirrus as part of streamlining the fleet.
• Completed first phase of strategy process.

Highlights 2014

Key events during 2014

19

Net result development

Limited competition, market barriers present High revenue / low capital intensity Unique competence and service mix

• Attributed services

increasing link towards clients.

• High Arctic competence

among crew.

• Shared competence

with SMA.

A unique business model

VSS revenue divided on vessel book value vs industry average (VSS in yellow).

20

Global OSVs

3463

Ice-classed OSVs

23

VSS

7

Ice classed vessels below 25 years, Ice class 1A or above.

Contract awards in Arctic regions

• Brage Viking fixed to Oil major for up to 4

years and 2 months including options.

• Vidar Viking extended with Oil major to 1st

August 2016, plus 6 months options.

• Balder Viking to the Pechora Sea for short

contract with Gazprom Neft.

Significant contract awards

21

Improved market position

• Strong contract awards in a generally

challenging OSV market supports the company’s strategic position within its segment.

• Ice classed vessels obtain premium rates

despite market downturn.

• The company still sees opportunities in

Arctic and Sub-Arctic regions.

Weaker global demand

• Global demand has not

rebounded as assumed after the financial crisis.

• China especially has

lagged behind.

• High energy prices can

be one of the explanatory factors.

An unexpected downturn?

Reduced investments Increased supply Offshore order boom

Mainly supply-side problem, but also influenced by:

• Operators signaled

reduced spending already in 2013.

• Companies were cash

negative after dividends and capex even at prices well above USD 100.

• Industry needed to

increase efficiency.

• Increased efficiency from

shale production in the US.

• Excess supply from

shale should not be a surprise in it self, but combined with other factors this caused the market to react as it did.

• PSV owners had
• rdered vessels on the

back of high rig activity.

• As a result of reduced

spending, utilization has dropped,

• Activity will still be high

in medium to long term, but rig and OSV market will be challenging.

22

A future for Arctic E&P?

23 Cost reduction brings budget prices down – Also for Arctic oil

”

Economies

• f scale –

Large investments but also large potential rewards

”

Long term prices are the leading indicator

”

Growing energy demand combined with depleting production

”

The geopolitical situation in Russia

24 OSVs are not directly impacted by the current sanctions.

”

Sanctions are the major

• bstacle for
• perations in

Arctic Russia.

”

Difficult to predict near term outlook, no

• bvious

solutions.

”

Reduced activity

• Downturn

to hit rig-market and

• il-service harder than OSV.
• PSV segment influenced the most.
• Bigger downside risk at NCS in 2016/17.
• UK sector coming from already low

levels.

• Of Arctic projects VSS expected, mainly

Russian projects being delayed.

• Cost saving measures on general G&A being

implemented.

• Re-organizing the PSV segment, closing Aberdeen
• ffice and moving functions to Copenhagen.
• Ship operating cost being scrutinized.
• Focus on term coverage.
• Refinancing of 3 facilities completed in 2014,

improved maturity.

VSS approach to a weaker market

50 100 150 200 2009 2010 2011 2012 2013 2014 2015*

*NPD forecast

Risk mitigation already initiated

200 400 600 800 1000 1200 2015 2016 2017 2018 After 2018 MNOK Bond

Updated debt maturity per 31st December

25

Wells drilled on NCS

• Brage Viking firmed up with Oil major to mid-

December 2017 for operations in sub-Arctic

• region. Options to extend to mid 2019.
• Vidar Viking now firm to 1st August 2016, with
• ptions to extend to 1st February 2017.
• Ongoing process to firm up remaining
• ptional periods for Njord Viking as well as

secure contracts for remaining AHTS fleet.

• Strong focus to secure term coverage for

PSV fleet.

Contract coverage status

26

2015 2016

50% 47%

Contract coverage AHTS

Firm contract Option

AHTS

Oil major, 11 months firm + 2 x 6 months options Oil major, firm for 2015 + options 2016/2017 Spot Oil major, firm till 1st August 2016 + 6 x 1 months options Spot Spot Eni Norge, firm till 29th July 2015 + 2x1 yearly options Spot Oil major, 2 years 8 months firm + 6 + 12 months options Tor Viking Balder Viking Vidar Viking June April May July August September Odin Viking Loke Viking Njord Viking Magne Viking Brage Viking October November December January February March

Increase term coverage

Focus areas 2015

27

Reduce cost base Further develop services segment

• Complete re-organization of PSV segment.
• Enhance capital discipline across the company.
• Lean organization arranged for future growth.
• Pursuit term opportunities in Arctic and Sub-Arctic

regions for the AHTS fleet.

• Extension of optional periods of existing contracts in

progress.

• Focus on world-wide opportunities for the PSV fleet.
• Develop and commercialize on services under the

Viking Ice Consultancy brand.

• Develop & confirm technology to increase customer

loyalty.

Strong financial standing Increased contract coverage at premium rates Prepared for future growth

• Net result of MNOK

292 in 2014, compared to MNOK -52 in 2013.

• Strong balance sheet,

with value adjusted equity ratio of 47%.

• Still opportunities in

core areas.

• Term vessels obtain

premium rates.

• Lean organization

prepared for future growth.

Summary

VSS AHTS contract coverage.

28

29

Annual General Meeting Heléne Mellquist CEO TransAtlantic Gothenburg April 9, 2015

• 2014 Turnaround
• TransAtlantic 2015
• Focused Actions

Content

31

• Main restructuring areas from 2013 to 2014

– Streamline and simplification of organization – Short Sea Bulk collaboration with A2B@C – Close down of door-to-door concept

• TransPal
• SSB
• Turnaround to a more stabilized company

2014: Turnaround

32

Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q4/14 489 489 427 382 369 336 308 278

• 62
• 41
• 51
• 33
• 38
• 2
• 8

Revenue (MSEK) PBT (MSEK)

2014: Positive customer reactions to “New TA”

” TransAtlantic has helped us create a more cost efficient logistics concepts for new markets where we have not been able to compete before”

Sture Öberg, Logistics Manager Smurfit Kappa

“TransAtlantic is innovative and has developed its customer service to a flexible and responsive

• rganization with the customer in focus”

Peter Lidström, General Manager, Hamburg Süd Göteborg

A strong liner network with focus on RoRo and feeder services connects the Bay of Bothnia and South Sweden with the large transshipment ports on the continent

33

” It is inspiring that TransAtlantic's logistics system has given us new market choices”

Lars Norberg, Logistics Manager SCA Timber

”Delivery accuracy is very important to us. TransAtlantic is a reliable partner in our containerized material flow”

Tuula Untinen, Logistics Manager, Outokumpu Steinless Tornio

TransAtlantic AB today

• We offer reliable and flexible logistics and feeder

solutions connecting the Bay of Bothnia / South Sweden with the continent.

• Our key focus is to supply outports in Baltic with a

high quality liner service even in rough winter conditions

• We offer ship management products and services

in a demanding environment

• 23 RoRo, Container and Bulk vessels in our fleet
• Head quarters in Gothenburg, sales office in

Helsinki and crewing in Tallinn

A niche player in outports

35

Kemi Piteå Antwerp Kokkola Södertälje Oxelösund Åhus Tornio Oulu

FMCG

Bremerhaven Hamburg

35

• Piteå introduced in June 2014
• First Härnösand call in April 2015
• New calls in Piteå and Härnösand
• pened in close cooperation with

the local industry

• The direct call to North Sweden

has opened new market

• pportunities for the industry

New exploration in North East Sweden

36

Antwerp

Piteå

New Port

Härnösand

New Port

Tornio Bremerhaven Hamburg Antwerp Kemi Oulu Kokkola Oxelösund Södertälje Åhus

4.5% 3.5% 1.5% 1.0% 0.5% 0.1%

Sulphur Emission Control Areas (SECA) implemented

• New stricter sulphur

regulation entered into force in January 2015 (SECA)

• Mitigation activities

such as network

• ptimisation and vessel

size adjustments has shown results

• Pilot Scrubber installed
• n-board TransTimber
• Zone based SECA

surcharge introduced to

• ur customers has been

well received

Several regulations affects the operations:

• New stricter sulphur regulation entered

into force in January 2015 (SECA)

• Further regulations for NOX, SOX and

particles are expected

• CO2 regulations will continue to drive

development towards more energy efficient ships

• Ballast water convention close to be
• adopted. Will thereafter enter into force

within 12 months. Requiring cleaning equipment to be installed on all ships. Regulations will impact fleet development in the whole market

Environment regulations – Challenges & Opportunities

Ship Management

Crew Management Energy Saving Management Systems Technical Management Vessel Inspections Technical Consulting Docking Service

• Profitable business model for growth
• RoRo 2015-2016 strategy
• Container feeder outport strategy
• Fleet management
• Adapt to new business scope
• Secure competent and lean management team as well as organization
• Secure positive cash flow

2015 Focused Actions

40

• 7. Beslut om:

(a) fastställande av resultaträkningen och balansräkningen för moderbolaget, samt koncernresultaträkningen och koncernbalansräkningen. b) dispositioner beträffande årets resultat enligt den fastställda balansräkningen. c) ansvarsfrihet för styrelseledamöterna och verkställande direktören.

• 8. Fastställande av antalet

styrelseledamöter och revisorer

• 9. Fastställande av

arvoden till styrelsen och revisorerna

• 10. Val av

styrelseledamöter och styrelseordförande

• 11. Val av revisorer

• 12. Beslut om valberedning

inför nästa årsstämma

• 13. Beslut om riktlinjer för

ersättning till ledande befattningshavare

• 14. Beslut om ändring i

bolagets bolagsordning (firmaändring)

• 15. Stämmans avslutande

Tack och välkommen åter 2016!