18 November

2014

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

Mika Vehviläinen, Interim President, MacGregor

Declan Guerin, CFO, MacGregor

1. MacGregor overview

2. Market development

Merchant

Offshore

3. Key strategies

4. Conclusions

2 18 Nov 2014

Our ambition

18 Nov 2014 3

…is to build a

market leading

platform which

delivers sustainable

growth and returns

through the cycle

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:

offshore growth and profitability

4 18 Nov 2014

Strong positions in merchant ship and

offshore 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

Optimising functionality with integrated

ship-type solutions

6

Every ship requires

a cargo flow solution

which

Improves efficiency

Increases

competitiveness

MacGregor solutions

offer functionality in

Cargo access

Cargo care/stowage

Cargo handling

18 Nov 2014

Integrated solutions for specific ship

type and its operational requirements

18 Nov 2014 7

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

0

2

4

6

8

10

12

14

16

0

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 %

Financial impact of synergies seen in

order intake and material cost reduction

Orders 2014 Sales 2014

OS

T

Acquisitions Synergies

Legacy MacGregor

Acquisitions Synergies

Legacy MacGregor

18 Nov 2014 9

1. MacGregor overview

2. Market development

Merchant

Offshore

3. Key strategies

4. Conclusions

10 18 Nov 2014

0

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

0

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

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

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

1. MacGregor overview

2. Market development

Merchant

Offshore

3. Key strategies

4. Conclusions

14 18 Nov 2014

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

1. MacGregor overview

2. Market development

Merchant

Offshore

3. Key strategies

4. Conclusions

16 18 Nov 2014

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