Second Quarter 2016 Presentation

Transcription

1 Second Quarter 2016 Presentation Scanship Holding ASA August 31, 2016 Henrik Badin CEO Christian Fr. Thyholdt - CFO

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 Scanship In brief Company structure Green technology company designing and delivering systems for managing wastewater, solid waste, food waste and bio-residue on ships Headquartered in Norway with subsidiaries in USA, Italy and Canada for sales and service; and in Poland for production Market leader with type approved Advanced Wastewater Purification (AWP) system with nutrient removal approved under IMO MEPC 227(64) chapter 4.2. First supplier with MED- B, MED-D and MED-F certificates New technology under development to increase offering Company offering Business model scope of services R&D Sales & marketing Engineering & Design Procurement Manufacturing & assembly (outsourced) Installation Commissioning Aftersales Service, spares & chemicals

4 Financial highlights 2Q16 Revenue for 2Q16 ended at NOK 45.0m Positive development in aftersales segment with 38% increase from 2Q15 Lower project revenues: resources allocated for tendering and R&D activities delays in contract awards % 30% 25% 20% NOKm Revenue & Gross margin Revenue for YTD 2016 ended at NOK 84.8m, down 12% from 2015 EBITDA in 2Q16 was NOK 0.3m, down from NOK 3.4m in 2Q15-2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 Project Aftersales Margin % 15% 4

5 Operational highlights 2Q16 During 2Q16 Scanship delivered equipment to Meyer Werft for the second newbuild construction for Dream Cruises, a subsidiary of Genting Group Completed the retrofit installation aboard Oceania Sirena, a subsidiary of NCL Holding. Commissioning of the systems aboard Harmony of the Sea, Ovation of the Seas, Carnival Vista, Viking Sea and Mein Schiff 5, resulting in an all-time high activity at shipyards Completed the commissioning on Harmony of the Seas during 2Q16 Awarded contracts for delivery of total clean ship systems for two cruise vessels at an Italian shipyard. The main delivery of equipment will take place in 2017 and in 2018 Newbuild for Dream Cruises 5

6 Order backlog Contract backlog reduced due to few new contracts in the quarter NOKm Order Backlog In June 2016, Scanship was awarded two contracts with an Italian shipyard. Due to a clause in the contracts only one of the vessels are included in the 2Q16 Order Backlog High newbuild tender activity in 2Q16, but delays in contract award. 0 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 6

7 Scanship ongoing newbuild contracts RCCL Quantum Class NCL Brekaway Class CCL Vista Class RCCL Harmony (Oasis) Class Genting Dream Class MSC Meraviglia Class TUI Mein Schiff Class Viking Star Class Silver Muse Class

8 Scanship newbuild contract overview Yard Owner Class Scope of Supply Year of Ship delivery RCCL Quantum Class AWP Grey & Black MEPC 227(64) incl. Chapter 4.2 Ovation of the Seas Ovation II Ovation III Project 1105 Project 1215 Project 1216 Equipment Delivery: Q Equipment Delivery: Q Equipment Delivery: Q Norwegian Cruise Line Breakaway Plus AWP Grey & Black MEPC 227(64) incl. Chapter 4.2 Norwegian Joy Project 1101 Breakaway Plus (707) 708 Project 1147 Project 1148 Equipment Delivery: Q Equipment Delivery: Q Equipment Delivery: Q Genting Dream World Dream Dream Cruises AWP Grey & Black MEPC 227(64) incl. Chapter 4.2 Project 1122 Project 1125 Equipment Delivery: Q Equipment Delivery: Q TUI - RCCL Mein Schiff AWP Grey & Black MEPC 227(64) - prepared for chapter 4.2 Mein Schiff 5 Mein Schiff 6 Mein Schiff 1 Mein Schiff 2 Project 1138 Project 1139 Project 1187 Project 1188 Equipment Delivery: Q Equipment Delivery: Q Equipment Delivery: Q Equipment Delivery: Q RCCL Oasis Class AWP Grey & Black MEPC 227(64) excl. Chapter 4.2 Harmony of the Seas Oasis 4 Project 1104 Equipment Project 1149 Delivery: Q Equipment Delivery: Q MSC Meraviglia Class Total Clean Ship= Waste Mgmt + AWP Grey & Black MEPC 227(64) excl. Chapter 4.2 MSC Meraviglia Project 1127 / 1135 MSC Meraviglia II Project 1156 / 1157 Equipment Delivery: Q Equipment Delivery: Q Viking Ocean Cruises Total Clean Ship= Waste Mgmt + AWP Grey & Black MEPC 227(64) incl. Chapter 4.2 Project 1102 Viking Sea Viking Sky Viking Sun Viking Spirit Equipment Project 1136 Project 1163 / 1164 Project 1165 / 1172 Delivery: Q Equipment Delivery: Q Equipment Delivery: Q Equipment Delivery: Q Carnival Vista Carnival Horizon Carnival Cruise Line AWP Grey & Black MEPC 227(64) incl. Chapter 4.2 Project 1107 Equipment Project 1155 Delivery: Q Equipment Delivery: Q SilverSea Cruises Total Clean Ship= Waste Mgmt + AWP Grey & Black MEPC 227(64) excl. Chapter 4.2 Silver Muse Project 1133 / 1142 Equipment Delivery: Q Vessel equiped with AWP, but Waste Mgmt from competitor Vessel equiped with AWP and Waste Mgmt 8

9 Status retrofit strong and unchanged potential AWP retrofit potential (# of vessels) High tendering activity expected to bring orders - higher industry focus ~ NOK 2.3bn IMO decision on Helcom implementation is expected to re-boost demand Total Already installed AWP Excluded 116 Retrofit potential Scanship will complete the retrofit for a Helcom compliant AWP-system on the Oceania Sirena in 3Q16 AWP retrofit cruise market size is estimated to be ~ NOK 2.3bn Oceania Sirena is being retrofitted with Scanship AWP, the new system will meet IMO Marpol MEPC 227(64) 9

10 Condensed consolidated income statement NOKm Employee expenses Relative to Revenue, base=4q14 (NOK 1 mill) Condensed consolidated income statement Unaudited Unaudited Unaudited Unaudited Audited 2Q16 2Q15 YDT2016 YTD2015 FY 2015 Total operating revenue Cost of goods sold Gross Margin Gross Margin % 30% 31% 31% 29% 32% NOKm Other operating expenses Relative to Revenue, base=4q14 OPEX EBITDA Operating profit (EBIT) Net finance Profit before tax The capacity reflected in OPEX is higher than current project activity level The capacity has been utilised on activities within tendering and R&D, awaiting contract awards in the near future The company will closely monitor forward activity level and seek to optimise OPEX accordingly 10

11 Impact financial instruments Scanship s hedging strategy is to secure all EUR-revenues from projects, that are not directly related to EUR-purchases Forward share of hedging on contracts is reduced from 70% to 60% since 4Q15 to adapt to larger share of purchases in EUR Currency effects on financial items in 2Q 2016 (NOK million) Realized Unrealized Total Agio Disagio Financial Instruments Sum Financial Instruments at end 2Q 2016 Maturity (EUR million) Total Amount secured through FI Average EUR/NOK Rate % of estimated EUR-payments 69% 84% 60% 11

12 Consolidated condensed cash flow statement Late payments from yard of approx. NOK 7m has reduced cash and reduced net cash flow from operating activities. Payment on overdue invoices have been received in 3Q16 Outstanding German VAT of NOK 4.0m, paid in 1Q16 is expected repaid in 4Q16 Investing activities mainly from product development Unaudited (NOK million) 2Q16 Profit before income tax 0.2 Net cash flow from operating activities 2.8 Net cash flow from investing activities -2.2 Net cash flow from financing activities -3.0 Net change in cash and cash equivalents -2.4 Cash and cash equivalents ingoing balance 4.4 Cash and cash equivalents at end of period 2.0 Net cash flow from financing activities due to reduced utilisation of overdraft facility 12

13 Condensed consolidated financial statement Unaudited Unaudited Audited (NOK 1 000) ASSETS: Total non-current assets Current Assets: Inventories Trade receivables Contracts in progress Other receivables Cash and cash equivalents Total current assets Total assets Increase in non-current assets mainly due to product development activities Increase in trade receivables and trade creditors mainly due to equipment delivery activity late in 2Q16, in addition to late payments from customers Unaudited Unaudited Audited (NOK 1 000) EQUITY AND LIABILITIES Total equity Total non-current liabilities Current liabilities: Trade creditors Contract accruals Financial instruments Income tax payable Bank overdraft Other current liabilities Total current liabilities 83, Total liabilities Total equity and liabilities Other receivables include NOK 6.0m in provisions for German VAT Other Current liabilities include NOK 1.0m in provisions for German VAT 13

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