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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
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