1. business and industrial
2. company
3. earnings

TTS GROUP ASA
Q4 Results 2014
Oslo, 12 February 2015
Björn Andersson, CEO
Henrik Solberg-Johansen, CFO
Agenda
•
•
•
•
•
•
4th quarter headlines
4th quarter consolidated accounts
Roll out strategy 2015-2017
Financial goals 2015-2016
Summary
Appendix
2
TTS Group ASA
4th quarter 2014 – key figures

Turnover 4Q MNOK 734 – up from MNOK 638 last year

EBITDA 4Q of MNOK 142 includes one time effects from change in pension
plan in the Norwegian companies amounting to MNOK 106

Order intake 4Q MNOK 498 excl. JVs. JV order intake 4Q MNOK 656
(100%)*

Order backlog 4Q 2014 MNOK 4 813, incl. 100% of JVs
(*)TTS holds 50% of the JVs
3
800
TTS Group ASA
Turnover
750
700
650
Turnover and EBITDA development
600
734
550
638
500
450
400
Q4 2014
Q4 2013
EBITDA
60,0
10 %
40,0
5%
20,0
0,0
-20,0
0%
Act Q2
2012
Act Q3
2012
Act Q4
2012
Act Q1
2013
Act Q2
2013
Act Q3
2013
Act Q4
2013
Act Q1
2014
Act Q2
2014
Act Q3
2014
Act Q4
2014
-40,0
-60,0
-5 %
-10 %
-80,0
-15 %
-100,0
-120,0
-20 %
EBITDA
EBITDA margin
Note: - Restated 2012 due to changes in IAS 19, recognition of actuarial gain/loss on pension liabilities
- EBITDA Q4 2014 of MNOK 36 is excluding pension effect of MNOK 101
4
TTS Group ASA
Order intake and order backlog
1 400
1,80
1,60
1 200
Order intake per quarter 2013-2014
including 100 % of JVs
1,40
1 000
1,00
600
0,80
MNOK
800
Book to bill
1,20
Book to bill = Order intake / Revenues
0,60
400
0,40
200
0,20
0
Q1 2013
Q2 2013
Q3 2013
Order intake (ex JV)
Order backlog per
31.12.2014 is MNOK 4 813
including 100 % of JVs
Divided per year of delivery;
Q4 2013
Q1 2014
Order intake JV (100 %)
Q2 2014
Q3 2014
Q4 2014
Book to bill (incl 100 % JV)
4 000
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2015
2016
Group ex JVs
JV 100 %
2017+
5
Agenda
•
•
4th quarter headlines
4th quarter consolidated accounts
6
TTS Group ASA
Profit and loss statement
4th quarter
2014
2013
MNOK
Year
2014
2013
Turnover
734
638
2 454
2 693
EBITDA *)
142
-110
105
-130
Operating profit *)
128
-121
61
-164
-7
-22
-38
-37
121
-142
23
-201
Net result continued business *)
89
-154
-22
-227
Net result incl discontinued business *)
89
-154
18
-204
Net financial items *)
Profit/loss before tax *)
*)
- 2014 figures include one time effects related to the change in pension plan in Norwegian companies.
Effect amounts to MNOK 106 in Q4 and MNOK 101 for the year.
7
TTS Group ASA
Balance Sheet
MNOK
31.12.2014
31.12.2013
Non-current assets
Current assets
TOTAL ASSETS
927
1 377
2 304
942
1 282
2 225
Equity
Gross interest bearing liabilities
Other liabilities and provisions
TOTAL EQUITY AND LIABILITIES
610
385
1 309
2 304
567
233
1 426
2 225
Net interest bearing debt / Covenants

At 31 December 2014 TTS has renegotiated covenants with
the banks (ref note 14)
o
o
Equity > 20% (nominal bond debt included in EQ)
EBITDA covenants
(MNOK)
EBITDA covenant accumulated



Q4-14
≥ 31
Q1-15
≥ 31
Q2-15
≥ 53
Q3-15
≥ 80
Net interest bearing debt decreased to MNOK 262.
Total cash reserve is MNOK 308 as per 31.12.2014
Equity ratio inclusive subordinated convertible bond is 30.6 %
at year end 2014
8
TTS Group ASA
Cash flow / Working capital / Interest bearing debt
Cash flow
MNOK
Net cash flow from operations
Q4
Q4 YTD YTD
2014 2013 2014 2013
76
112 -150 -138
MNOK
Short term interest b. debt
297
273
295
187
50
1
1
1
103
103
95
95
95
95
95
Total
393
369
391
385
248
Cash
131
88
88
117
156
NIBD (**)
262
281
303
268
92
Net cash flow from investments
-14
-12
27
14
Long term int. bearing debt
Net cash flow from financial activities
-31
-19 101
-3
Convertible Bond(*)
Net change in cash
32
Cash and bank deposits at the start of the period
82
-21 -127
156
228
-4
55
131
156
Effect of exchange rate changes in bank/cash
Cash and bank deposits at the end of the period

Cash flow from operations MNOK -150, mainly from
increased working capital offshore projects
Q4 14 Q3 14 Q2 14 Q1 14 Q4 13
(*) Convertible loan included at nominal value
(**) Negative indicates net asset position
Net working capital

Minor changes in working capital during Q4.
9
RoRo / Cruise / Navy
Cargo handling solutions for car carriers, cruise ships and specialized vessels as well as port handling equipment.
MNOK
Turnover
EBITDA
Order backlog
Q4 periodic
2014
2013
157
149
25
11
854
762
Full Year
2014
2013
599
562
77
53
854
762

Improved turnover and profit for the business unit

Market for RoRo, particularly PCTC, is positive

Competition is fierce and prices are low in the port
segment

Cruise business is developing, with new contracts
signed in 4Q

The Naval segment is promising, with new
resources and higher sales activities
10
Container / Bulk / Tank
Cargo handling solutions for container ships, tankers and bulk carriers; including winches, cranes and hatch covers.
MNOK
Turnover
EBITDA
Order backlog *)
Q4 periodic
2014
2013
105
167
-7
-52
1 687
1 056
Full Year
2014
2013
422
535
-5
-71
1 687
1 056
*) Includes 50 % of JVs

Profit from JV companies MNOK 3.6 in Q4 and
MNOK 14.3 YTD

Order backlog driven by strong market positions
for the JVs in China

The outlook is neutral

Business unit head-quarter moving closer to the
market. Transfer from Germany to South Korea
ongoing, reducing future operating cost
11
Multipurpose / General Cargo
Heavy lift cranes, mooring winches, hatch covers and side loading systems for multipurpose vessels and cargo ships.
MNOK
Turnover
EBITDA
Order backlog
Q4 periodic
2014
2013
47
8
-1
-13
562
307
Full Year
2014
2013
138
374
-32
-35
562
307

New contracts give basis for increased
productivity in Q4. Volumes from new contracts
balance activity with operational cost base

Several new contracts in 2014 give basis for
increased turnover in 2015

Increased activity in Chinese shipyards - several
projects are tendering heavy lift cranes

Improved order backlog combined with cost
cutting measures, basis for improved EBITDA
margins

Established new JV in China with South China
Marine Machinery Ltd (subsidiary of CSSC)
12
Shipyard Solutions
Production lines and systems for cargo handling to shipyards, focusing on transfer systems for docking and launching.
MNOK
Turnover
EBITDA
Order backlog
Q4 periodic
2014
2013
53
58
27
9
271
308
Full Year
2014
2013
192
168
32
18
271
308

EBITDA for the quarter includes one-off pension
effect of MNOK 20. EBITDA excl. pension is MNOK
7.5 for the quarter and MNOK 14.9 for the year

Stable activity in the quarter. Several interesting
projects may develop in 2015

TTS with a strong position in the ship lift market.
Signs of improvement in market for translifter
systems
13
Offshore
Cranes for offshore vessels and offshore installations.
MNOK
Turnover
EBITDA
Order backlog
Q4 periodic
2014
2013
210
143
33
-75
254
539
Full Year
2014
2013
572
608
-50
-114
254
539

EBITDA for the quarter includes STX settlement of
MNOK 23 and one-off pension adjustment of
MNOK 37. EBITDA excl. one-off effects is MNOK 27 for the quarter, and MNOK -110 for the year

Cost reduction efforts implemented. Due to long
lead time for projects → effect expected gradually
during 2015

Decrease in order backlog, STX cancellation and
order intake significantly lower than 2013

Positive user feedback on product performance
and reliability
14
Services
Complete services within maintenance, including spare parts, interval agreements and life time service.
MNOK
Turnover
EBITDA
Q4 periodic
2014
2013
162
113
64
18
Full Year
2014
2013
530
446
96
43

High activity in the quarter, 43 % up from last year,
and stabile margin

EBITDA for the quarter includes one-off pension
effect of MNOK 40. EBITDA excl. pension is MNOK
24 for the quarter and MNOK 59 for the year

Structural capacity in the segment provides basis for
increased turnover, and improvement to the overall
profit margin. However, the service market remains
influenced by low ship charter rates in some
segments
15
TTS Group ASA
10 largest shareholders at February 11th 2015:
Rasmussengruppen AS
13.29%
Skeie Technology AS
10.31%
Lesk AS
6.13%
Stisk AS
6.13%
Skeie Capital Investment AS
4.85%
Barrus Capital AS
4.00%
Skandinaviska Enskilda
3.70%
Skagen Vekst
3.53%
Holberg Norge Verdipapirfondet
2.50%
Tamafe Holding AS
2.49%
Total
56.93%
Skeie Technology AS, Skeie Capital Investment AS and members of the Skeie family
own in total 32,0 %.
16
Agenda
•
•
•
4th quarter headlines
4th quarter consolidated accounts
Roll out strategy 2015-2017
17
Our long-term goal
Building a global BNOK 6 System and Service provider company in the
maritime and offshore industry within 2020





Grow by internal efficiency and capture market share
Add peripheral products to complement
Product costs on par with the market
Key accounts to support customer relationships
Major focus to penetrate our installed base and third party equipment
18
Overall vision for TTS Group
Vision
The global supplier of handling systems to the maritime and
offshore industry with the strongest focus on end user
satisfaction
System &
Technology
competence
Values that
drive us
Reliability &
Customer
satisfaction
Health
Safety &
The Environment
A preferred global supplier means:

Strategy



Be on the makers list and get market share > 30 % in each market segment where we
are positioned
Product technology among the top 3 in each segment where we compete
Customer oriented solution that support the life cycle of the vessel from new design to
recycling. Wider product offerings to support package sales and reduce sales costs
Profitability on par with industry average
19
TTS launched its new Global strategy in 2014
Roll out version for 2015-2017
1
Continue to build
on the solid position
in China
2
3
•
•
•
Focus on ship type
– more integrated
package sales
•
•
Enhanced
service offering
through strategic
hubs
•
•
•
•
•
4
Focus on
profitability
•
•
The leading position in China provides shipping market access. China with
~40% of total shipping order book, Korea at ~30%
TTS aims to continue to leverage its strong market and cost position in China
and Far-East, and grow into Korea
Increase the scope of manufacturing co-operation in China
Currently delivering single products to a high number of vessels
TTS aims to move from product focus to ship type focus, and provide more
value per sale, through bundling of products and systems.
Move closer to the end user -> Key Account ownership across TTS
Focus on major clusters of customer bases and create relationship for services
on a ship´s lifetime
Increase ability to serve the customer on the spot and in a timely manner
Develop service entities with technical and design knowledge for all TTS
products
TTS aims to reach operating income margins on par with industry average over
a business cycle
Marine business units delivering decent margins. Further improvement expected
in 2015 to reach average industry margins in 2017
Offshore business unit currently underperforming. Work started in 2014 to
turn this around and capture a fair share of the market
20
Leveraging TTS’ current strong market position

•
Unique position in China
‒
‒
‒
‒

•
Strong product portfolio and position in core
market segments
‒
‒
‒

•
‒
•
Solid global brand image to be built upon
Growing markets in many segments
Untapped sales potential on package sales per ship
Growth platform established – BNOK 4.8 in
Order backlog in 2014 including JVs
‒

> 50% market share for hatch covers and hose
handling cranes, growing market share for winches
and cargo cranes
Close to BNOK 1 JV revenues in 2014
Strong manufacturing platform
All time high order intake in 2014
Order books across all divisions are growing
Organization restructured from product structure to
ship type structure
Service footprint expanded by strategic hubs
Dedicated employees and a good working
culture
21
Exploring new strategic opportunities to
further strengthen the business
•
TTS has built a strong product portfolio and market position in core shipping markets
•
TTS believe “package sale” will be a key growth driver going forward
–
–
•
TTS Group has a strategy to fill the gaps in its product portfolio and to grow its client
offering, in order to deliver more package sale
–
•
This will position TTS for higher order value per ship, and enable TTS to increase its market
position in our core markets, i.e. China and Korea.
In order to position the TTS Group for such growth the Board of Directors of TTS
Group has decided to run a strategic process to look for one or more partners to
achieve and deliver on its new strategy and continue the impressive record of
accomplishment within ship equipment going forward
–
•
Our organization reformed from product type to ship type structure
Increased integration and automation of control systems on a ship in order to reduce on/off
loading time is a focus area for ship owners
The Board of Directors of TTS Group has retained Pareto Securities AS as the financial
advisor to assist in the strategic process
Please see press release dated 12 February 2015 for more information
22
Our journey to continued revenue growth,
increased profitability and improved cash flow
Revenue improving
actions
•
•
•
Continue to build on the solid position in China
Launch ship-type organisation with global service
Use high market share segments to launch package sales and
complement with peripheral products
Cost reducing
actions
•
•
•
Product benchmarking to reach top of the range performance
Technical standardization and group sourcing across business units
Incorporate a flat organization structure and new business
processes in Offshore and Container, Bulk & Tank
Risk reduction
actions
•
•
•
Focus on core products in well defined segments
Implement group bid reviews and authorization matrix
Best in class work processes across business units
Working capital &
capex reduction
actions
•
•
•
•
Cash flow actions > adjustment of working capital days
Simplification of work process
2015 capex budget significantly reduced
No dividend plans
23
TTS has a strong position in the biggest global
shipbuilding market
China and Korea account for ~70% of global shipbuilding
% of global shipbuilding backlog (CGT)
TTS China market share
Hatch covers
Strategy
•
Uniquely positioned to
capitalize on China
partnerships and
through BU presence
in Korea
•
A new Chinese JV is
established for
Multipurpose &
General Cargo
•
Increased operational
focus on Chinese JVs
90%
80%
65%
70%
60%
Hose handling cranes
50%
40%
55%
30%
20%
Cargo cranes
10%
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
0%
China
Korea
22%
Japan
Source: Clarkson Research Services
24
Restructuring from product to ship-type focus
Current TTS product portfolio
Product expansion opportunities
RoRo/Cruise/Navy
Container/Bulk/
Tank
Multipurpose/
General Cargo
Shipyard Solutions
Services
Offshore
Turnover: MNOK 599
EBITDA: MNOK 77
Turnover: MNOK 422
EBITDA: MNOK -5 *)
Turnover: MNOK 138
EBITDA: MNOK -32
Turnover: MNOK 192
EBITDA: MNOK 32
Turnover: MNOK 530
EBITDA: MNOK 96
Turnover: MNOK 572
EBITDA: MNOK -50
Heavy lift cranes, mooring
winches, hatch covers and
side loading systems for
- Multipurpose vessels
- Cargo ships
Production lines and
systems for
- Shipyards cargo
handling
- Transfer systems for
docking and launching.
Cargo handling solutions for
- Car carriers
- Cruise ships
- Specialized vessels
Port handling equipment
RORO product dev.
Cruise (davits, tenders,
gangways, winches, new
innovations)
Navy (hangar doors,
turntables, cranes, hatch
covers)
Cargo handling solutions
incl. winches, cranes and
hatch covers for
- Container ships
- Bulk carriers
- Tankers
Cargo control systems
Lashing bridges
Lashing gears
E-cranes
Increased leg encircling
crane portfolio
Cargo control systems
Green scrapping
Complete services within
- maintenance,
- spare parts
- interval agreements
- life time services
Increased # spare parts
hubs
Increased # servicing hubs
Offshore cranes for
- offshore vessels
- offshore installations
Increased AHC crane size
range
ROV handling systems
Skidding systems
Change from product focus to ship type focus
•
•
•
•
Key account – 20% of ship owners owns 80% of the global fleet
One face to the market
More value per sale, packaged deliveries
Broader service offering per ship type -> Leading to TTS as total service provider
Product platform to support life time services -> TTS a total Service provider
*) Includes 50 % of net profit after tax in the JVs
25
Container ship example - Increased value per vessel
From single product supplier to package solutions
Lashing
bridges
Lashing gear
Not current TTS product
Not current TTS product
Hatch covers
Training and
instructions
Winches
Services
TTS goal:
Complete package solution
26
Increase service revenues through increased
presence at strategic hot spot hubs
Competitive advantage through “on-the-spot” presence where TTS equipment is sailing
• Increase ability to serve
the customer on the spot
and in a timely manner
• Service entities with
technical and design
knowledge for all TTS
products
• Hub advantages:
‒ Customer accounts (sales)
‒ Service capability on all TTS
products
‒ Stock of critical parts –
Workshop
‒ Technical knowledge (design)
• Hub development areas:
‒
‒
‒
‒
‒
‒
Bremerhaven
Houston
Brazil
Singapore
Dubai (to be developed)
Antwerp (to be developed)
27
TTS is already on the vessel – ambition to
increase value per contract
TTS global market share
TTS has a potential to double sales per vessel
Illustration – MNOK sales per containership
RoRo Equipment
40%
10
Heavy Load
Cranes
1,5
0,5
31
Lifecycle
services
Total ship
equipment
delivery
30%
4
15
Hatch Covers
Deck Winches
25%
20%
TTS current
sales per ship
Product
example
Cargo & Service
Cranes
30%
Hatchcovers
Potential
package
sales
Winches
Potential new Recurring
TTS products equipment
deliveries
Lashing
bridges
Lashing
gears
Service
28
TTS revenue growth potential
Potential for growth towards 2020, goal of BNOK 6 turnover
BNOK
7
6
5
4
3
2
1
0
2014 revenue Growth in current Package sales
product sales
gain
New products
Growth in
lifecycle services
2020 revenue
potential
29
Our journey to continued revenue growth,
increased profitability and improved cash flow
Revenue improving
actions
•
•
•
Continue to build on the solid position in China
Launch ship-type organisation with global service
Use high market share segments to launch package sales and
complement with peripheral products
Cost reducing
actions
•
•
•
Product benchmarking to reach top of the range performance
Technical standardization and group sourcing across business units
Incorporate a flat organization structure and new business
processes in Offshore and Container, Bulk & Tank
Risk reduction
actions
•
•
•
Focus on core products in well defined segments
Implement group bid reviews and authorization matrix
Best in class work processes across business units
Working capital &
capex reduction
actions
•
•
•
•
Cash flow actions > adjustment of working capital days
Simplification of work process
2015 capex budget significantly reduced
No dividend plans
30
Operational Excellence & Synergies
Phase 1 (2013)
Phase 2 (2014)

Organizational adjustments and
merging units




Product development started in all
divisions.
Cost savings operational cost ~
MNOK 70 + sourcing cost ~MNOK 60

substantial lower sourcing
costs
Closing gaps /product
development


market shares to increase
Ship-type focus
Increase product leverage per
ship
Profitability through cost
efficiencies

Key account structure implemented
Corporate driven controller structure
implemented.
Momentum cost reduction projects


Downsizing in Offshore and
Multipurpose General Cargo finalized
and new work process implemented
Customer driven growth



Enhance market focus



Focus on efficient operation/process


Integration of Container/Bulk/Tank
business unit initiated.
Phase 3 (2015)
reinforced competitive position
Lean and mean business

substantial better focus on
segments where higher
productivity are achieved
In 2014 MNOK 130 were released in operation & sourcing costs
In 2015 we will eliminate another MNOK 100
Breakdown of operating cost reductions
•
•
•
•
•
•
The divisional layer is
removed -> a flat Business
Unit structure reporting
directly to CEO
Business processes across
legal entities
One company structure
avoiding duplicate functions
and administration
Sourcing and standardisation
across the business units
In total ~MNOK 70 annual
cost reduction achieved in
2014
Further ~MNOK 35 annual
cost reduction initiated in 2015
Headcount reductions
Annual cost savings initiated
123
105
90
80
27
20
6
5
Employees
NOKm
Offshore
Container, Bulk & Tank
RoRo, Cruise and Navy
32
Our journey to continued revenue growth,
increased profitability and improved cash flow
Revenue improving
actions
•
•
•
Continue to build on the solid position in China
Launch ship-type organisation with global service
Use high market share segments to launch package sales and
complement with peripheral products
Cost reducing
actions
•
•
•
Product benchmarking to reach top of the range performance
Technical standardization and group sourcing across business units
Incorporate a flat organization structure and new business
processes in Offshore and Container, Bulk & Tank
Risk reduction
actions
•
•
•
Focus on core products in well defined segments
Implement group bid reviews and authorization matrix
Best in class work processes across business units
Working capital &
capex reduction
actions
•
•
•
•
Cash flow actions > adjustment of working capital days
Simplification of work process
2015 capex budget significantly reduced
No dividend plans
33
Risk reduction actions and events
 Finalization of loss projects
 Avoiding new high product risk
contracts and poor commercial
contracts
 New bid reviews processes are
implemented, both CEO and the Board
involved on lower bid size than
previously
 TTS best in class work processes
introduced in Offshore
 New BU leader for Offshore with
experience from project management
and the offshore industry
34
Our journey to continued revenue growth,
increased profitability and improved cash flow
Revenue improving
actions
•
•
•
Continue to build on the solid position in China
Launch ship-type organisation with global service
Use high market share segments to launch package sales and
complement with peripheral products
Cost reducing
actions
•
•
•
Product benchmarking to reach top of the range performance
Technical standardization and group sourcing across business units
Incorporate a flat organization structure and new business
processes in Offshore and Container, Bulk & Tank
Risk reduction
actions
•
•
•
Focus on core products in well defined segments
Implement group bid reviews and authorization matrix
Best in class work processes across business units
Working capital &
capex reduction
actions
•
•
•
•
Cash flow actions > adjustment of working capital days
Simplification of work process
2015 capex budget significantly reduced
No dividend plans
35
Cash flow optimization
 Group wide project to reduce working capital
started in 2Q 2014
–
–
–
Focus on improving outstanding days for receivables
and payables, as well as inventory optimization
Average AR shorter and AP longer, saving a total of
MNOK 113 from 2Q to 4Q
Project continues in 2015, lead by dedicated senior
finance manager
 Bid process focused on moving new contracts
towards more cash neutral cost/revenue
streams
 Dedicated follow up of large milestone payments
from group cash manager with focused
accountability by project managers
 2015 capex budget significantly reduced
 No dividend plans
36
Agenda
•
•
•
•
4th quarter headlines
4th quarter consolidated accounts
Roll out strategy 2015-2017
Financial goals 2015-2016
37
TTS is on track to improve profitability
• Revenues for TTS Group excluding Offshore expected to grow to
BNOK 2.1-2.3 in 2015
• EBITDA margins for TTS Group excluded Offshore expected to
improve to approximately 6%
• TTS also expect a modest growth in revenues for the Group
excluding Offshore into 2016 with margins approaching industry
average levels
• Offshore excluded as it is currently exposed to a weaker market
sentiment, and has a different risk profile compared to the other
parts of the Group
38
2015 EBITDA expectations in line with
historical margins
Revenues excluding Drilling Equipment, Offshore and JVs (MNOK)
EBITDA margin
3 000
10,0%
9,0%
2 500
8,0%
7,0%
2 000
Avg. margin ~6%
6,0%
1 500
5,0%
4,0%
1 000
3,0%
2,0%
500
1,0%
--
-2004
2005
2006
2007
2008
2009
2010
2011
Note: Illustrative graph based on historical reported segment figures
2012
2013
2014
39
Agenda
•
•
•
•
•
4th quarter headlines
4th quarter consolidated accounts
Roll out strategy 2015-2017
Financial goals 2015-2016
Summary
40
Summary

Positive quarter and full year EBITDA
 Positive 4Q EBITDA for the second quarter after four negative previous quarters
 Positive 2014 full year EBITDA

Improvement processes on track
 We have a road map for the improvement processes going forward in 2015 that has
not changed. Up to now we have:



Positive view on significant market segments
 The marine market remains good






Finalized the cost cutting programs in MPGC, CBT and Offshore (Offshore to continue pending
market development in 2015)
Value chain development in several product segments (sourcing, product development, sales)
Contracting of new vessels, especially bulkers continues to be on acceptable level
Car carriers continue with several repeats
Container ships grow, especially feeder-size and 16 000-20 000 TEU
Multipurpose/General cargo have improved from Q2
Offshore market under pressure
TTS exploring new strategic opportunities to further strengthen the business
 Please see press release dated 12 February 2015 for more information
41
Agenda
•
•
•
•
•
•
4th quarter headlines
4th quarter consolidated accounts
Roll out strategy 2015-2017
Financial goals 2015-2016
Summary
Appendix
42
Market Outlook
World seaborne trade growth
Global GDP growth
World seaborne trade growth
2015
2013
2011
2009
2007
2005
2003
2001
- 6,0%
1999
- 6,0%
1997
- 4,0%
1995
- 4,0%
2017
- 2,0%
2015
- 2,0%
2013
--
2011
--
2009
2,0%
2007
2,0%
2005
4,0%
2003
4,0%
2001
6,0%
1999
6,0%
1997
8,0%
1995
8,0%
1993
10,0%
1991
10,0%
1993
Growth in world seaborne trade vs fleet size
1991
Growth in world seaborne trade vs GDP
Fleet growth *
Except for periods with financial turbulence, GDP and Fleet growth are
exceeding 2 % p.a. and reached an average of 4 % p.a.
Source: Clarkson Research Services
* Including Tankers (10k DWT+), bulk carriers and container ships
43
Market Outlook
Growth scenario impacted by:
•
Bunker price
•
Financial credits availability
•
Historic low newbuilding price
•
Low inflation
•
Low interests on credit lines
•
GDP growth worldwide
•
Limited risks on financial crisis
We expect 2-3 years of good growth
in the Marine industry, while Offshore
will need 2-3 years of adjustments
Source: Clarkson Research Services, September 2014
44
Market Outlook
Global fleet size development (# of vessels)
100 000
90 000
80 000
70 000
60 000
20 784
21 327
22 039
22 931
23 873
50 000
40 000
30 000
5 939
1 911
18 721
20 000
3 210
10 000
6 071
1 902
18 831
3 384
6 153
1 922
19 167
6 194
1 972
19 478
6 258
2 015
19 874
25 071
26 506
28 925
29 974
30 903
6 396
6 415
6 428
6 395
2 007
2 045
2 049
2 033
20 742
20 600
20 544
20 735
27 842
6 326
6 389
2 072
2 013
20 366
20 603
5 076
5 080
4 963
5 083
4 797
3 649
3 999
4 375
4 737
7 399
8 298
9 671
10 023
7 054
9 084
6 748
5 690
5 928
6 194
6 452
9 697
9 911
10 232
10 598
11 049
11 629
12 202
12 509
12 824
13 101
13 347
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
0
Tankers
Bulk carriers
Container
General cargo/reefer/MPP
Car carriers/RoRo/PCC
Passanger & Cruise
Other
Source: Clarkson Research Services
45
Market Outlook
Orderbook by ship type
Orderbook per YE'14 (m. DWT)
120
% of fleet
50%
45%
169.7
100
40%
35%
80
68,7
30%
60
25%
20%
38
40
15%
10%
20
12,7
5,4
7,3
0,9
1,7
0
0,5
0,6
1,3
0
1,8
5%
0,1
Other cargo
Offshore
(AHTS/PSV
Reefers
Car Carriers
Ro-Ro
General Cargo
Multi-purpose
Containerships
LNG
LPG
Combos
Bulkers
Other tankers
Chemical tankers
0%
Oil tankers
0
Source: Clarkson Research Services
46
Market Outlook
Newbuild contracting by region (# of vessels)
6 000
100,0%
90,0%
5 000
80,0%
70,0%
4 000
60,0%
3 000
50,0%
40,0%
2 000
30,0%
20,0%
1 000
10,0%
--
-2000
2001
2002
2003
2004
2005
Asia
2006
Europe
2007
2008
RoW
2009
2010
2011
2012
2013
2014
Asia share (%)
Source: Clarkson Research Services
47
Market Outlook
RoRo and PCC orderbook development (# of vessels)
400
350
300
250
200
150
100
50
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
RoRo
Pure Car Carrier
Source: Clarkson Research Services
48
Market Outlook
Newbuild prices (USDm)
180
160
140
120
100
80
60
40
20
0
1980
1982
1984
1986
1988
1990
1992
VLCC
1994
1996
Aframax
1998
2000
Capesize
2002
2004
2006
2008
2010
2012
2014
Panamax
Source: Clarkson Research Services
49
Market Outlook
OSV fleet development; deliveries (#)
400
350
300
250
200
150
100
50
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
PSV
2010
2011
2012
2013
2014
2015
2016
AHTS
Subsea vessel fleet development; deliveries (#)
Order book
35
30
25
20
15
10
5
0
2000
2001
2002
Pipelay
2003
2004
2005
ROV Support
2006
2007
2008
2009
Diving Support
2010
2011
2012
Well Intervention
2013
2014
2015
2016
2017
Other
Source: IHS
50
For further information, please visit us at
www.ttsgroup.com
TTS GROUP ASA
51