Presentation first quarter 2014 Q1 2014.pdf · • MSEK 25,6 contract for power transformation and...
Transcript of Presentation first quarter 2014 Q1 2014.pdf · • MSEK 25,6 contract for power transformation and...
Presentation first quarter 2014
Goodtech ASA, 14 May 2014
Agenda
HighlightsFinancial reviewOrder bookGoodtech – in briefOutlook
2
Highlights, first quarter 2014
Turnover of MNOK 558,4 in Q1 2014 compared with MNOK 575,6 as in Q1 2013. Acceptable due to lower activity in our project portfolio in Q1.
EBITDA of MNOK 8,2 in Q1 2014, compared with MNOK 22 in Q1 2013.
Weaker EBITDA than planned due to postponed and lower progress in some larger project and temporarily lower activities in our markets.
Positive progress in Solutions business unit.
Order backlog of MNOK 1.243 at the end of Q1, compared with MNOK 1.306 at the end of 2013.
Positive outlook in our markets
3
Highlights, first quarter 2014
All business units focus on optimizing their operations
• Project operations• Strategic Market and Sale• Cost control• Human resources, continue training activities
Continue with action plan in Solutions to improve earnings. EBITDA loss in previous quarters turned to profit in Q1. Environment turnover increased with 24,3% in Q1 compared to Q1 2013. Infra and Products – weak performance in the quarterInstallation and testing of Energy Recovery System ongoing.
4
Highlights, first quarter 2014, Market
Order backlog continue on a high level, MNOK 1.243.
Some of the contracts in Q1: • MNOK 40 Contract for delivery biogas treatment
plant to Tønsberg - Vestfold Biogass (not in orderstock)
• MNOK 35 Contract for delivery of control systems and panels to Hydro Aluminum, Karmøy Plant.
• MSEK 25,8 LKAB, Power and installation, Svappavaara
• MSEK 12 NCC, Power and installation contract
• MSEK 11,6 Jämtnät AB, power contract
• MSEK 7,8 Scania, production line solution
5
Highlights, first quarter 2014, Market
Significant contracts won after Q1• MSEK 25,6 contract for power
transformation and distribution station for Älvsjö plant for Fortum Distribution in Stockholm
• Renewal of frame agreement for Integrated Operations(IO) with Statoil
• Delivery of Manufacturing Execution System (MES) to Hydal, Raufoss
High level activities in the market. Promising outlook.
6
Financial Review
7
Main figures
8
(NOK 1.000) Q1 14 Q1 13 2013Revenues 558 401 575 572 2 433 776Product expenses 245 914 280 390 1 197 535Salary expenses 235 074 215 308 905 011Other operating expenses 69 166 57 870 245 012
EBITDA 8 247 22 005 86 218
EBITDA % 1,5 % 3,8 % 3,5 %Depreciation 6 488 5 756 24 021Non recurring items 0 0 3 087
EBIT 1 759 16 249 59 110Net financial items -1 897 -893 -8 406Share of Profit from Associated comp. 0 0 3 917
Profit before taxes -138 15 356 54 621
Taxes -617 3 478 13 132
Net result from continuing operations 480 11 879 41 489
Net result 480 11 879 41 489
Attributable to:
Ow ners of the parent 311 11 623 41 171
Non-controlling interests 169 255 318
Sum 480 11 879 41 489Earnings per share from continuing operations 0,01 0,37 1,28Deluted earnings per share 0,01 0,37 1,28
Quarterly revenues and earnings - historical
9
‐
100
200
300
400
500
600
700
MNOK
Revenues
‐
5
10
15
20
25
30
MNOK
EBITDA
Financial highlights – Balance sheet
10
NOK million 31.03.14 31.03.13 31.12.13Fixed tangible assets 73,3 47,1 67,5 Intangible assets 696,9 664,6 696,8 Total fixed assets 770,3 711,7 764,2 Cash 17,3 20,5 33,4 Other current assets 699,1 630,6 739,2 Total current assets 716,4 651,1 772,6 Total assets 1 486,7 1 362,8 1 536,8
- - - Total equity 713,9 716,2 725,2 Non-current borrow ings 109,7 50,4 118,3 Other non-current liabilities 12,9 14,9 11,5 Total non-current liabilities 122,6 65,3 129,9 Current borrow ings 88,5 26,5 77,2 Other current liabilities 561,7 554,8 604,6 Total current liabilites 650,2 581,3 681,8
Total equity and liabilities 1 486,7 1 362,8 1 536,8 - - -
Net cash and borrow ings 180,9 56,4 162,2 , , ,
Equity Ratio (%) 48,0 % 52,6 % 47,2 %Net Gearing (%) 25,3 % 7,9 % 22,4 %Liquidity Ratio 1,1 1,1 1,1
Definitions:Net Gearing (%): Net interest Bearing Debt/Total equityLiquidity Ratio : Current Assets/Current Liabilities
Financial highlights – Cash flow
11
NOK 1.000 Q1 14 Q1 13 2013Cash f low from operations -2 771 5 026 -8 734Cash f low from investments **) -19 877 1 799 -39 187Cash f low from financials -7 001 -71 108 -86 788Net changes in cash from period -29 650 -64 284 -134 709Net Cash funds at beginning of period -45 886 82 857 82 857Effects of exchange rate f luctuation on cash held 2 321 1 887 5 965Net Cash funds at end of period *) -73 215 20 460 -45 886
*) Consisting ofCash and cash equivalents - balance sheet 17 276 20 460 33 365Overdraft facility -90 491 0 -79 251Net Cash funds at end of period -73 215 20 461 -45 886Undraw n credit facilities amounts to MNOK 106,0 at the end of Q1
**) Includes investment in Energy Recovery Pilot
Cash flow from operations and EBITDA
12
Development in Cash flow from operations and EBITDA on 12 months rolling basis
Employees per business area
13
‐
200
400
600
800
1 000
1 200
1 400
1 600
1 800
Projects & Services Infra Solutions Environment Products Admin
Total no. of employees by 31.03.2014: 1.467
Order backlog
14
‐
200
400
600
800
1 000
1 200
1 400
MNOK
Projects & Services Infra Solutions Environment Products
Business areas – figures and facts
15
EnvironmentSolutionsInfraProjects & Services Products
Business unit: Projects & Services (P&S)
Highlights• P&S business unit has performed well in the quarter.
Some projects postponed in start-up and finalization phase
• Turnover on same level as Q1 2013. • EBITDA lower than Q1 2013. Focus on activities for
improving profitability going forward • Order backlog stable compared to end of 2013 and
increased compared to Q1 2013.• Won several contracts confirming our position as one of
the leading suppliers, LKAB, Statoil, Hydro, Fortum.• Strategic focusing in our business
16
NOK 1.000 Q1 14 Q1 13 2013Revenue 377 159 380 255 1 576 982EBITDA 13 558 20 770 79 800EBITDA margin % 3,6 % 5,5 % 5,1 %Order backlog 814 804 606 998 813 476No. of employees 1 149 1 128 1 162
‐
50
100
150
200
250
300
350
400
450
MNOK
Revenues
(5)
‐
5
10
15
20
25
30
MNOK
EBITDA
Business unit: Infra
Highlights• Turnover 25% lower than Q1 2013.• Low activity in the larger projects in Q1 gives low
utilization of workforce and low progress in the projects. Activity will vary from quarter to quarter.
• Negative EBITDA as consequence of turnover reduction. • Order backlog is still on a high level.• Market look promising in the longer perspective, both in
Sweden and Norway.• Won first smaller contract in Norway after Q1
17
NOK 1.000 Q1 14 Q1 13 2013Revenue 44 542 59 414 294 412EBITDA -1 440 813 10 621EBITDA margin % -3,2 % 1,4 % 3,6 %Order backlog 259 254 404 858 285 736No. of employees 64 62 66
0
10
20
30
40
50
60
70
80
90
100
MNOK
Revenues
‐2
‐1
0
1
2
3
4
5
6
7
MNOK
EBITDA
Business unit: Solutions
18
Highlights• Turnover in Q1 on same level as in Q1 2013• Improvement plan in Solutions gives positive effects on
EBITDA. Improvement work will continue • Order backlog on acceptable level. • Large prospect portfolio. Focus on strategic sale and
market.
NOK 1.000 Q1 14 Q1 13 2013Revenue 52 183 58 280 199 301EBITDA 69 -1 974 -10 282EBITDA margin % 0,1 % -3,4 % -5,2 %Order backlog 65 258 63 304 73 184No. of employees 130 141 133
‐
10
20
30
40
50
60
70
80
MNOK
Revenues
(6)
(5)
(4)
(3)
(2)
(1)
‐
1
2
3
4
5
MNOK
EBITDA
Business unit: Environment
19
Highlights• Significant turnover increase in Q1 2014 compared to Q1 2013.
• High level of project activity in Q1
• EBITDA in Q1 on typical Q1 level. However loss in one project had negative effect on margin
• Order backlog is varying. Backlog is on acceptable level taken into account contracts included in order backlog after Q1.
• Won MNOK 40 Contract for delivery biogas treatment plant toTønsberg - Vestfold Biogass
• Activity in the Norwegian SBR / Biovac® market has increased in 2014, both in the Norwegian and especially in the Swedish market.
• Market survey confirms positive market expectations for 2014
‐
10
20
30
40
50
60
70
80
90
MNOK
Revenues
(2)
(1)
‐
1
2
3
4
5
6
7
MNOK
EBITDA
NOK 1.000 Q1 14 Q1 13 2013Revenue 73 803 59 393 296 566EBITDA 1 332 1 556 8 016EBITDA margin % 1,8 % 2,6 % 2,7 %Order backlog 98 859 165 384 129 835No. of employees 79 74 78
Business unit: Products
Highlights• Weak turnover in Q1 compared with Q1 2013 mainly due
to a temporal weak market for Products in beginning of 2014.
• New sales personnel in end 2013 and in beginning of 2014. Increased sales activities in the quarter.
• EBITDA is weak due to low turnover and increased investment in salesforce.
• Increased number of prospects and leads in the period.
• P&S contract for Norsk Hydro will also give large sales volume for Products.
• Market outlook is positive
20
NOK 1.000 Q1 14 Q1 13 2013Revenue 19 912 27 009 92 716EBITDA -791 2 978 7 092EBITDA margin % -4,0 % 11,0 % 7,6 %Order backlog 4 327 11 167 4 235No. of employees 26 23 24
‐
5
10
15
20
25
30
MNOK
Revenues
(1)
‐
1
2
3
4
MNOK
EBITDA
” Goodtech shall be the leading supplier of automation, electrical, process, industrial engineering, and environmental solutions in the
Nordic region.”
Goodtech – in brief
21
A considerable technology group - background
22
1913
Norsk ElektriskKabelfabrikk A/S
founded
1993
New name: GoodtechBusiness idea:
Environmental tech
2006
Includes automation and material handling into the business idea
El & Industrimontage AB founded 1994
El & Industrimontage Svenska ABand Goodtech ASA merge into
the ”New” Goodtech
2010
MNOK
YEAR
Turnover increased from MNOK 130 in 2005 to MNOK 2.434 in 2013
TURNOVER
2013
Goodtech in brief
Approx 1.500 employees, with a revenueof NOK 2,4 billion
Strong local presence with almost40 offices in Sweden, Norway and Åland
Headoffice in Oslo and listedon Oslo Stock Exchange
Sweden
Approx 1.150 employees
27 offices, from Kiruna in the north to Malmö in south
Norway
Approx 290 employees
10 offices, with headoffice in Oslo
Åland
Approx 40 employees
Office in Mariehamn
23
24
Market drivers
Upgrade of infrastructure and energy systems
Increased efficiencyand competitive ability
within the industry
Society’s need for more environmental friendly solutions, products and
projects
Organisation
Goodtech is organised into five business areas• Projects & Services• Infra • Solutions• Environment• Products
25
EnvironmentSolutionsInfraProjects & Services Products
Solid service and product portfolio
Automation Industry technology
InstallationPower technology
Environment technology
26
• Innovative technologies and solutions
• Turn-key projects
• Broad specter of services and competence
Market segments
Industry
Infrastructure
Energy and heating
Oil and gas
Building and public sector
Water & sanitation and biogas
27
Highlights – Technology development
Technology agreement with Dubal for Energy Recovery signed. Investment in pilot. • Installation and start up of test in
progress.• Technology has high potential
when successfully testedDedicated technology development activities in Solutions• Technology is platform for winning
contracts
Develop technology and standardized solutions to stimulate to repeat business in all business units
28
Commercial and financial risks for Goodtech
Commercial and market risk • Market for Industry projects and solutions – some risk• Market for Infrastructure projects and solutions – some risk
Financial risks • In general small currency exposure• In general small risk for contract cancellation• In general small risk for loss on receivables • In general some risk related to projects
Turn-key projects and deliveries • Some risk related to project execution
• Various complexity, size and duration of projects• Shortage of Project Managers
• Reducing risk:• MQSP (Method, Quality, Safety and Procurement) department
focus on training, improvement of methods and quality • Training Project managers and employments ongoing
Technology and product development• Some risk related to technical issues and market positioning
29
30
Outlook 2014
Expect continuous upgrade and large investments within infrastructure,energy and oil & gas In general, promising markets for Goodtechs services, solutions and products– basis for organic growth The uncertainty in some markets due to uncertainty in the global economyseems to decrease. However still unpredictable
Brief market analysis:• Power and Energy market• Infrastructure, railway/subway• Industry, mines• Industry, manufacturing• Industry, paper• Oil & Gas Industry• Environment• Public buildings
Outlook - Market
31
Summary / Outlook 2014
Growth strategy • Organic growth in business areas where
Goodtech has strong position and positive market expectations
• Expect strong market drivers within some market segments which is basis for three separate strategic initiatives
• Energy / Power• Oil & Gas• Aquaculture
• Improve and maintain strong margins
32
Summary / Outlook 2014
In 2014 Goodtech shall buildstronger positions• Continue to build the Goodtech brand• Use customer focus and well established
market position to increase business • Use of own product technology
and technical competence• Open for non-organic growth
within certain areas, consolidationpossibilities in the market
Maintain active dividend policy
33
The Goodtech way
A better world through the integration of sustainable solutions