Building platform for future growth key actions started to improve - - PowerPoint PPT Presentation

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Building platform for future growth key actions started to improve - - PowerPoint PPT Presentation

Apr 11, 2023 250 likes •439 views

18 November 2014 Building platform for future growth key actions started to improve profitability Mika Vehvilinen, Interim President, MacGregor Declan Guerin, CFO, MacGregor 1. MacGregor overview 2. Market development Merchant

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18 November 2014

Building platform for future growth – key actions started to improve profitability

Mika Vehviläinen, Interim President, MacGregor Declan Guerin, CFO, MacGregor

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  • 1. MacGregor overview
  • 2. Market development
  • Merchant
  • Offshore
  • 3. Key strategies
  • 4. Conclusions

2 18 Nov 2014

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Our ambition

18 Nov 2014 3

…is to build a market leading platform which delivers sustainable growth and returns through the cycle

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MacGregor strengths

 Leading brand with long standing client

relationships

 Truly global with 61 service centres and

55 sales offices

 Leading product range  World class R&D portfolio  Lean organisation  Flexible low cost production  More balanced portfolio:

  • ffshore growth and profitability

4 18 Nov 2014

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Strong positions in merchant ship and

  • ffshore markets

Hatch covers, container lashings Cranes RoRo access equipment Port and terminal solutions Marine selfunloaders Offshore load handling Marine loading arms Deck machinery Steering gears Mooring systems Offloading systems Bow loading systems

18 Nov 2014 5

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Optimising functionality with integrated ship-type solutions

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Every ship requires a cargo flow solution which

  • Improves efficiency
  • Increases

competitiveness MacGregor solutions

  • ffer functionality in
  • Cargo access
  • Cargo care/stowage
  • Cargo handling

18 Nov 2014

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Integrated solutions for specific ship type and its operational requirements

18 Nov 2014 7

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Financials

Financial track record Balanced sales mix

Merchant Offshore Service

2013 2014

1-9/ 14*

* excluding Bulk Handling business Operating profit% excluding restructuring costs

18 Nov 2014 8

2 4 6 8 10 12 14 16 200 400 600 800 1,000 1,200 1,400 1,600 1,800 06 07 08 09 10* 11* 12* 13* Orders Sales Operating profit%

MEUR %

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Financial impact of synergies seen in

  • rder intake and material cost reduction

Orders 2014 Sales 2014

OST

Acquisitions Synergies Legacy MacGregor Acquisitions Synergies Legacy MacGregor

18 Nov 2014 9

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SLIDE 10
  • 1. MacGregor overview
  • 2. Market development
  • Merchant
  • Offshore
  • 3. Key strategies
  • 4. Conclusions

10 18 Nov 2014

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500 1,000 1,500 2,000 2,500 3,000 3,500 02 04 06 08 10 12 14 16 18 20 22 24 26 1,000 2,000 3,000 4,000 5,000 6,000 02 04 06 08 10 12 14 16 18 20 22

Slow recovery in merchant shipping

Long-term contracting 2002–2023 World fleet additions 2002–2026

18 Nov 2014 11

Source: Clarkson Newbuilding Market Forecast, September 2014

Boom Collapse Recovery

x4 ÷3 ~3% p/a

History Forecast

x3 ÷2 ~3% p/a

History Forecast ship nos ship nos

Fleet expansion Over-capacity Recovery

x4 Magnitude of expansion /

contraction in ship numbers

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Sub-sea support demand is expected to grow

Offshore oil production Global vessel market demand

  • Expecting continued deep water growth
  • Current “low” oil price is above break even

point of deep-water investments

  • Oil majors are cutting capex however, this

is being offset by NOC’s expanding

  • Core markets will continue to grow,

support activity remains stable

  • More deep-water activity is supportive of

lifting and intervention equipment

  • Sweating of existing assets is supportive

Source: Douglas Westwood

18 Nov 2014 12

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Despite reducing oil price outlook remains positive

Break-even price for non-producing assets in USD/barrel Global oilfield service purchases, 2014–2020 CAGR

13

80 USD/barrel

0% 2% 4% 6% 8% 10% 12%

Source: Rystad energy

Maintenance and operations EPCI Subsea Drilling contractors Well services and commodities Seismic All offshore purchases Downside on CAGR in an 80 USD/barrel scenario

18 Nov 2014

EPCI = Engineering procurement construction and installation

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  • 1. MacGregor overview
  • 2. Market development
  • Merchant
  • Offshore
  • 3. Key strategies
  • 4. Conclusions

14 18 Nov 2014

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Key actions to drive profitability

Service

  • Right capabilities and

systems

  • Service footprint
  • Excellence in spare

parts availability

Grow services to 30% of sales

Sales

  • Increase sales by

cross-selling & defining sales models

  • Increase solution

selling

Cross-selling 100 MEUR +

Effectiveness

  • Leveraging technology

and R&D

  • Design to value

2% product margin improvement

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  • 1. MacGregor overview
  • 2. Market development
  • Merchant
  • Offshore
  • 3. Key strategies
  • 4. Conclusions

16 18 Nov 2014

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Conclusions

 Moderate growth for merchant, offshore outlook

remains positive

 Margin impacted by low volumes, competitive

environment, one-time costs and delivery mix

 Integration and synergies on target  Building platform for growth  Key improvement actions started, impact visible

2016 onwards

17 18 Nov 2014

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