4Q 2014 Presentation. 25 February 2015

Transcription

1 4Q 2014 Presentation 25 February 2015

2 Disclaimer This presentation (the Presentation ) has been produced by Scanship Holding ASA ("Scanship" or the "Company") exclusively for information purposes. This Presentation includes forward-looking statements regarding Scanship, including projections and expectations, which involve risk and uncertainty. Such statements are included without any guarantee as to their future realization. Although Scanship currently believes that the expectations regarding the Company reflected in such forward-looking statements are based on reasonable assumptions, no assurance can be given that such projections will be fulfilled. Any such forward-looking statement must be considered a long with the knowledge that actual events or results may vary materially from such predictions due to, among other things, political, economic, financial or legal changes in the markets in which Scanship does business, and competitive developments or risks inherent to the Company s business plans. Many of these factors are beyond Scanship s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on any forward-looking statements. Accordingly, the Company does not accept any responsibility for the future accuracy of the forward-looking statements expressed in this Presentation or the actual occurrence of the forecasted developments. The Company does not intend, and does not assume any obligation, to update any such forward-looking statements as of any date subsequent to the date hereof. No representation or warranty (express or implied) is made as to, and no reliance should be placed on, any information, including, without limitation, projections, estimates, targets and opinions, contained herein, and no liability whatsoever is accepted as to any errors, omissions or misstatements contained herein, and, accordingly, the Company does not accept any liability whatsoever arising directly or indirectly from the use of this Presentation. By receiving this Presentation, the recipient acknowledges that he will be solely responsible for its own assessment of the market and the market position of the Company and that he will conduct his own analysis and be solely responsible for forming his own view of the potential future performance of the businesses of the Company. This Presentation must be read in conjunction with the recent financial information, as well as other publicly disclosed information. Nothing in this Presentation, nor any other information provided to the recipient by the Company or any of its advisers constitutes, or may be relied upon as constituting, investment advice or any financial, tax or legal advice by such persons or anybody else. 2

3 About the company In brief Locations Scanship Holding ASA 100% Scanship AS 100% 100% 100% Scanship Americas Inc. Scanship Canada Inc. Scanship Poland Sp.z o.o Envirotech company solution provider for water purification and waste processing World leading cruise industry supplier Unique track record since 1993 with supplies to 49 newbuilds and 30 turnkey retrofits R&D driven with new game changing technologies under development One stop shop strategically located around the cruise liner and yard clusters 1 Tønsberg/Lysaker (NORWAY) 2 Fort Lauderdale (US) 3 Victoria (CANADA) 4 Turin (ITALY) 5 Gdynia (POLAND) 6 BuHua Hai Equipment & Engineering Co., (CHINA) 6 Business model scope of services R&D Sales & marketing Engineering & Design Procurement Manufacturing & assembly (outsourced) Installation Commissioning Aftersales Service, spares & chemicals 3

4 Company system offerings AWP (Advanced Wastewater Purification) system Layout illustration of the Scanship AWP on the ship classes NCL Getaway and RCCL Quantum built at Meyer Werft in Papenburg, Germany Treats all wastewater streams from onboard operations including galley water, reject water from foodwaste management systems and bio-residue treatment Meets all IMO Marpol- and local port sate regulations such as Alaska and Baltic Sea (Helcom). System type approved according to IMO Marpol MEPC 227(64) Compact, efficient and easy to operate, low cost with an attractive LCC and ROI 44 systems in operation, whereas 19 systems supplied to newbuilds and 25 systems as retrofits. Waste Management system Food waste Incinerator Waste recycling Bio-sludge Layout illustration for the Scanship Waste Management system on the Viking Star project at Fincantieri Processes all garbage, foodwaste and bio residues from shipboard operations Vacuum foodwaste conveying system to eliminate overboard discharge and risk of contamination Incinerator system meets and exceeds the IMO Marpol Annex V standard Recycled waste obtain savings and income from landing 50 systems in operation whereas 45 systems supplied to newbuilds and 5 systems supplied as retrofits. Combined supplies of AWP and Waste Managment systems defined as a «total clean ship system» 4

5 Operational highlights 2014 Completed IPO on the Oslo Stock Exchange Record high order intake in 4Q14 Maintained leading market share for AWP* systems on new cruise ships Continued technology development and commercialization of new solutions RCCL s Quantum of the Seas launched 2014 with Scanship AWP * AWP Advanced Water Purification system 5

6 Record high order intake in 4Q14 STX France awards contracts for Scanship Total Clean Ship * systems on MSC s E34 and F34, with options for G34 and H34 STX France awards contract for Scanship AWP system on RCCL s B34, the forth Oasis class vessels Illustration of MSC newbuilds E34 and F34 Fincantieri calls on the option for the Scanship Total Clean Ship * system on Viking Ocean Cruises newbuild no. 4 B34 Steel cutting ceremony at STX France * Combined system supplies AWP and Waste Managment system 6

7 Financial highlights 4Q14 NOKm 50 Revenues & EBITDA* NOKm 2,5 Total revenues 4Q14 at NOK 43.2m ending full year NOK 145.6m 40 2,0 Total revenues reflects retrofit market on hold ,5 1,0 EBITDA * for 4Q14 at NOK 0.7m ending full year NOK 4.4m 10-1Q14 2Q14 3Q14 4Q14 0,5 - Rev EBITDA * EBITDA before non recurring items 7

8 Revenues & gross margin Newbuild growth from NOK 46.6m to NOK 103.5m through period % 35% NOKm Segment Revenues & Gross margin Retrofit revenue declined in the period from NOK 60m down to NOK 3.3m % 32% % Retrofits on hold but potential remains unchanged % 29% 80 31% Positive development in gross margin * % 20 28% Newbuild Aftersales Retrofit Margin % * 2012 Gross Margin is proforma, restated to reflect changes to project accounting implemented from

9 Building backlog Significant 4Q14 order intake within newbuild NOKm Order Backlog Order backlog at year-end of NOK 185m, +83% from 3Q Positive outlook from strong momentum in cruise market Q14 2Q14 3Q14 4Q14 9

10 Revenue recognition in backlog Revenue recognition is driven by internal hours consumed on each project Internal hours include engineering, project management, procurement and commissioning At the time of main equipment delivery the project revenue recognition will typically reach ~ 80-85% of contract amount Remaining revenue is recognized from equipment delivery to date of completion Project Name Main equipment delivery (estimated) Project Completion (estimated) Mein schiff 4 - TUI 2 4Q Q-2015 Viking Star 4Q Q-2015 Anthem of the Seas 4Q Q-2015 Oasis 3 - A34 1Q Q-2016 Carnival Vista 3Q Q-2016 Norwegian Escape 3Q Q-2015 Viking Sky 4Q Q-2016 Viking Sea 1Q Q-2016 Ovation of the Seas 1Q Q-2016 Mein schiff 5 - TUI 3 2Q Q-2016 Genting World I 3Q Q-2016 Fincantieri, Viking 4 3Q Q-2017 Oasis 4 - B34 3Q Q-2018 MSC E34 4Q Q-2017 Norwegian Bliss 1Q Q-2017 Mein schiff 6 - TUI 4 2Q Q-2017 Genting World II 3Q Q-2017 MSC F34 3Q Q

11 Maintains high share in larger newbuild market Awarded 9 newbuilds during 2014 from total of 15 awards ~ 63% Scanship footprint in cruise newbuilding marketspace, on 22 of total 35 vessels Block construction of Viking Sea with Scanship equipment High tendering activity for several newbuilds to fill yard slots from expected to impact revenue from 2015 Illustration of Scanship waste system in the same block 11

12 Newbuild overview with 2014 contracting Contract awards in

13 Status retrofit AWP retrofits pushed back by Exhaust Gas Scrubbers (ECA) IMO decision on Helcom implementation is expected to re-boost demand AWP retrofit cruise market size is estimated to be ~ NOK 2.3bn Wärtsilä Hamworthy awarded AWP retrofit for Cunard's QM2 in exclusive bidding process NOKm Retrofit Revenue (Scanship) AWP retrofit potential (# of vessels) 128 Higher activity on feasibility studies and tendering compared to last year ~ NOK 2.3bn 116 Total Already installed AWP Excluded Retrofit potential 13

14 Steady underlying growth in aftersales 33% growth in aftersales through period NOKm Aftersales Revenue & Gross Margin 50% 46% Expect continued growth as more ships are being delivered % 38% Revenue in 2013 includes emergency repair from Carnival Triumph fire Aftersales CCL Triumph "fire" GM% 34% 30% 14

15 Status technology development Development of the new Waste to Energy solution - MAP * - on schedule Test facility under assembly in Norway with operations set to start 1H15 Waste to Energy solution for newbuilds and retrofit will provide tangible pay-back for the end user 6 product development projects completed in 4Q14, strengthening our system s effectiveness and broadening our range of environmentally friendly products Microwave pyrolysis inside test reactor test in 2014 * MAP Microwave Assisted Pyrolysis 15

16 Condensed consolidated income statement Gross Margin % lower mainly due to changes in project timeand -cost estimates Gross Margin % improvement YoY Opex increase reflects build-up for higher activity Finance costs 4Q14 include unrealized loss on financial instruments NOK 9.9m (NOK 1 000) Unaudited Unaudited Unaudited Audited 4Q14 4Q13 FY 2014 FY 2013 Total operating revenue Gross Margin Gross Margin % 30 % 38 % 32 % 31 % OPEX EBITDA before non-recurring items Operating profit (EBIT) Finance income Finance costs Profit before tax Profit for the period

17 Impact financial instruments Realized loss on Financial Instruments includes approx. NOK 3.3m related to currency hedges that were renewed Some of the effect reversed to date in 1Q15 Currency effects on financial items in 4Q 2014 (NOK 1 000) Realized Unrealized Total Agio Disagio Financial Instruments Sum Forward share of hedging on new contracts are reduced with larger share of EUR-purchases Financial Instruments at end 4Q 2014 Maturity (EUR 1 000) Total Amount secured through FI Average EUR/NOK Rate 8,58 8,28 8,71 8,56 % of Contract payments secured 94 % 83 % 72 % 86 % 17

18 Consolidated condensed cash flow statement Cash flow from operating activities reduced by NOK 3.3m due to EUROspike Late payments from Yard of approx. NOK 10m has reduced Cash and reduced Net cash flow from operating activities Overdue payments from Yard at end 4Q14 received in 1Q15 Investing activities mainly from product development activities Unaudited (NOK 1 000) 4Q 2014 Profit before income tax Adjustments: Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Net change in cash and cash equivalents Cash and cash equivalents ingoing balance Cash and cash equivalents at end of period Cash flow expected to improve in

19 Condensed consolidated financial statement Unaudited Audited (NOK 1 000) ASSETS: Total non-current assets Unaudited Audited (NOK 1 000) EQUITY AND LIABILITIES Total equity Current assets: Inventories Trade receivables Contracts in progress Other Receivables Cash and cash equivalents Total current assets Total assets Late payments from Yard of approx. NOK 10m has reduced Cash and increased Trade Receivables Increase in non-current assets mainly due to product development activities Total non-current liabilities Current liabilities: Current borrowings Trade creditors Contract accruals Financial instruments Income tax payable Bank overdraft Other Current liabilities Total Current Liabilities Total liabilities Total equity and liabilities Non-current bank loan of NOK 20m converted in 4Q14 to Bank overdraft 19

20 Scanship Holding ASA Lysaker Torg 12 P.O. Box Lysaker Norway Phone: