2 December 2013 Marine market pick-up and offshore expansion will boost MacGregor Eric Nielsen President, MacGregor
1. MacGregor overview 2. Market environment Merchant shipping Capital Offshore Markets Day 3. Strategies and acquisitions MacGregor 4. Conclusions 2 Dec 2013 3
Strong market leadership positions Merchant #1 #1 #1 #1 Cranes and RoRo Hatch covers Container lashing selfunloaders Offshore Services #2 #2 Offshore advanced Offshore winches load handling RoRo=roll-on/roll-off 2 Dec 2013 4
MacGregor – Overview of an industry leader MacGregor – Summary facts Strong financial track record MEUR % Annual sales in range of EUR 800 1,800 16 million 1,600 14 70% merchant 1,400 12 30% offshore 1,200 10 Close to customers and ship fleets 1,000 8 55 sales offices 800 6 61 service centres 600 4 50% of world’s ships carry 400 MacGregor equipment 2 200 0 0 06 07 08 09 10* 11* 12* 1- 9/13* Orders Sales Operating profit% * excluding Bulk Handling business Operating profit% excluding restructuring costs 2 Dec 2013 5
What to expect from MacGregor in 2014 Focus on larger systems sales Increasing order rates for merchant and offshore With increasing order lumpiness Capturing Hatlapa synergies Greater emphasis on service Procurement Managing the lag between ship Cross-selling with MacGregor orders and equipment sales Ship order & Ship order Inquiry Deliver cycle Negotiate Design & Build Equipment order & Inquiry Deliver cycle Negotiate Design & Build 10 – 22m 4 – 8m 13 – 26m 2 Dec 2013 6
Focus on integrated systems and solutions Comprehensive product coverage Hatch Cranes RoRo Offshore Winches Mooring Service covers equipment cranes systems Bulk carrier X X X X Merchant ships Container X X X X ship General X X X X X cargo ship Naval ship X X X X Customers RoRo ship X X X X X X X X Tanker Trans- X X X X loader OFS X X X X X X X Offshore subsea ships OFS AHTS X X X X X Customers OFS tug X X X X New ship types RoRo=roll-on/roll-off, OFS=offshore, AHTS=anchor handling, towing, supply X Existing X Via Hatlapa & Pusnes 2 Dec 2013 7
Merchant ship contracting forecast Contracting 2001-2017 Deliveries 2001-2017 6,000 6,000 No of units Forecast No of units Forecast 5,000 5,000 4,000 4,000 3,000 3,000 2,000 2,000 1,000 1,000 0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Clarkson Shipbuilding forecast, September 2013 2 Dec 2013 8
Offshore ship contracting forecast Offshore contracting, historical and forecast contracting (no) 1,200 No of units Forecast 1,000 800 600 400 200 0 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 Survey and development Production and logistics Support Source: Clarkson Offshore forecast, September 2013 2 Dec 2013 9
1. MacGregor overview 2. Market environment Merchant shipping Capital Offshore Markets Day 3. Strategies and acquisitions MacGregor 4. Conclusions 2 Dec 2013 10
Market megatrends – Favorable for merchant and offshore World seaborne trade and global GDP Global offshore E&P spending/yr (MUSD) 13.3 10.9 +12% 8.7 4.2% 3.8% +8% 6.0 424 3.5% 4.2 378 2.5% 284 236 212 209 148 1990 2000 2010 2015e 2020e 2006 2008 2010 2012e 2014e 2016e 2017e World seaborne trade (bn.tonnes) Global GDP growth (annual growth rates) World population to increase 18% 2012 Field discoveries have increased in to 2030 key markets Urbanisation increasing Subsea installation account for the majority of new field development Energy demand expected to grow in China & India Deep sea environments driving demand for premium products E&P=exploration & production Source: Clarkson 2013, DNV Shipping 2020, EIA, OECD 2 Dec 2013 11
Currently weak merchant shipping market is driving consolidations Yards Trend Total DWTm capacity @top European and weak Asian shipyards closing 10 shipyards or being consolidated 54.0 Large shipowners coordinating fleets Implications Larger and more sophisticated buyers Financially stronger and more viable Potentially greater purchasing leverage Likely more open to strategic supplier partnerships and total cost of ownership rationale Response Focus on segment-specific value propositions 5.2 Increased multi-level customer relationship management 1999 2013 2 Dec 2013 12
Increased shipowner focus on operating costs and environmental matters Vessels Trend Average vessel size, ‘000 gt Better fleet utilisation/management Greater adherence to environmental and safety compliance Implications Shift to larger ship sizes (Maersk 3E) Greater reliance on integrated and larger systems Higher rates of old fleet scrapping and conversions MacGregor response Leverage existing technology skills Expand service offering to improve uptime Expand systems/solutions offering 1990 2000 2010 2020e 2 Dec 2013 13
Global oil and gas demand is pushing the offshore frontier to new limits Global oil production Trend (M barrels per day) Greater need for equipment in deepwater applications and extreme weather environments Bitumen and oil sand 120 Offshore deep Implications Offshore shallow Requires higher levels of lifting capacity and Conventional 100 onshore advanced control systems Increased emphasis on both reliability and durability 80 Uptime is critical 60 MacGregor response Leverage Hatlapa and Pusnes expertise 40 Expand service offering 20 1970 1980 1990 2000 2010 2020 Source: Douglas-Westwood 2 Dec 2013 14
1. MacGregor overview 2. Market environment Merchant shipping Capital Offshore Markets Day 3. Strategies and acquisitions MacGregor 4. Conclusions 2 Dec 2013 15
Profitable growth driven by 5 key strategies External focus Internal focus Develop new Expand / Develop Deploy best practice business technologies, in key excellence tools products and geographies Common processes services China Common systems ERP, CRM Enhanced lifecycle Korea / Service offering Gulf of Mexico Integrated systems Expand / Develop Deploy best practice governance Offshore mooring into new model systems industries and Process-based Deepwater load applications Asset-light handling Offshore Focused service activities 2 Dec 2013 16
Hatlapa strengthens merchant and offshore offering Attractive deal structure Enterprise value of EUR 160 million Annual revenue of ~EUR 120 million 75% merchant 25% offshore Expands product coverage in key categories Mooring Merchant and offshore winches winches Offshore automated deck handling (Triplex MDH) Support equipment Hatlapa Supports expansion of integrated systems sales offshore Cross selling with MacGregor and Pusnes merchant ship package equipment and offshore load handling and mooring equipment ~585 new team members bring strong application and customer knowledge Merchant ship winch operations Deepwater automated load handling Service 2 Dec 2013 17
Pusnes solidifies offshore product portfolio Attractive deal structure Enterprise value of ~EUR 180 million Subject to regulatory approvals Annual revenue of ~EUR 130 million 25% merchant 75% offshore Expands product coverage in key offshore categories Offshore mooring and loading systems Supports expansion of integrated systems sales Combined offshore package sales with MacGregor and Hatlapa offshore load handling and mooring equipment Broadening geographical presence in merchant ship ~370 new team members bring deep application and customer knowledge Deep water, harsh environment mooring and load handling Service 2 Dec 2013 18
1. MacGregor overview 2. Market environment Merchant shipping Capital Offshore Markets Day 3. Strategies and acquisitions MacGregor 4. Conclusions 2 Dec 2013 19
Conclusions Leadership position in both the merchant and offshore equipment markets Proven track record of understanding and responding to market changes Clear strategies to move forward Continue to develop innovative technologies Fully integrate and leverage Hatlapa and Pusnes Expand our service offering and capabilities Well positioned for profitable growth 2 Dec 2013 20
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