presentation of q3 2014 - scanship€¦ · (outsourced) commissionin g aftermarket: service, spares...
TRANSCRIPT
Presentation of Q3 2014
18 November 2014
1
1. Q3 overview
2. Financials – Q3-2014
3. Scanship at a glance
2
Agenda
3
Retrofit market on hold, but high newbuild activity
Total revenue for the group lower in Q3 2014 and YTD 2014 compared to the same period
in 2013, mainly due to a retrofit market on hold
The newbuild segment per YTD 2014 has increased revenue compared to YTD 2013
The company delivers higher Profit before Tax compared to last year
Positive future outlook within newbuild, retrofit and aftersales
New orders in Q3 2014 maintains Order Backlog at above TNOK 100 000
Consolidated in TNOK Q3 2014 Q3 2013 YTD 2014 YTD 2013 FY 2013
Total Revenue 35 736 45 824 102 443 120 401 169 974
Gross margin % 30 % 29 % 33 % 28 % 31 %
EBITDA bef. Non-rec. 707 5 655 3 662 11 462 20 982
Operating Profit (EBIT) 517 5 347 682 10 600 19 890
Profit before Tax 2 969 2 533 1 512 1 456 7 188
Total Assets 140 472 88 544 140 472 88 544 101 401
Order Backlog 101 000 101 000
4
Revenue development
Q1 2013 through Q3 2014 shows typical seasonal
newbuild revenue with higher revenues in second
half of the year
Shipyards will place orders on several AWP and
Waste Management Systems for scheduled
newbuilds
Scanship expects to maintain its share in a growing
newbuild market
Neither the company, nor its competitors have been
awarded AWP retrofit contracts during Q3
The company is working on several leads for
possible retrofit contract awards
Continued focus on commercial activities is
expected to improve revenue in the Aftersales
segment
0
10 000
20 000
30 000
40 000
Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014
Newbuild Retrofit Aftersales
Revenue
TNOK
5
Retrofit market on hold, but changes expected with new IMO
standard
Scanship AWP certified to comply with the new MEPC
227(64) for special area Baltic Sea with nutrient
removal
Scanship is the only supplier today that holds such
approval suitable for larger cruise vessels
IMO MEPC67 meeting in October 2014 did confirm the
new standard for the Baltic Sea, with the date of
enforcement to be decided during next IMO MEPC
meeting in May 2015
A slow retrofit market with absence of orders in the
latest months may have been influenced by ship-
owners awaiting the outcome of the IMO MEPC
Meeting
The new standard is expected to be a driver for the
AWP retrofit market, in same way as it has been for the
cruise newbuilding market since 2010 where almost
60% of new constructions are, or will be prepared for
the new standard
6
AWP retrofit market estimated to 2.3 BNOK, several vessels yet
to adopt technology
Source: Clarksons, Management estimates, 1) System price assumed to 20 MNOK; 2) Includes all cruise vessels, both mainstream
cruise and smaller vessels; 3) Excludes ships not operating or scrapped; 4) Excluded smaller non-mainstream cruise vessels
7
Contract awarded by Meyer Turku (former STX
Finland) for delivery of AWP for two vessels being
build for TUI Cruises, Mein Schiff 5 and Mein Schiff 6
The main delivery of equipment will take place in the
second Quarter of 2015 for Mein Schiff 5 and 2016
for Mein Schiff 6
The contract includes options for equipment
deliveries in 2017 for Mein Schiff 7 and in 2018 for
Mein Schiff 8
Scanship AWP is in compliant operation on Mein
Schiff 3, the first vessel in this series of ship built in
Finland launched earlier this year
New contracts in Q3 – Meyer Turku
8
Completes commissioning of the advanced
wastewater purification system on RCCL’s Quantum
of the Seas
Major equipment deliveries has been made to the
newbuild constructions Viking Sea, Carnival Vista,
Norwegian Escape and Oasis of The Seas III
Viking Ocean Cruises Viking Sea and Carnival Cruise
Lines Carnival Vista are both being built at the Italian
ship yard Fincantieri for ship delivery in 2016
Norwegian Escape, for owner Norwegian Cruise Line,
are being built at the German ship yard Meyer Werft
for delivery in 2015
Oasis of the Seas III, under construction at STX
France for owner Royal Caribbean International will
be delivered in 2016
Main Q3 activities – high newbuild momentum
Higher industry newbuild momentum creates more
revenue opportunities – status Q3 2014
9
1. Q3 Overview
2. Financials – Q3-2014
3. Scanship at a glance
10
Agenda
11
Consolidated Income Statement
Unaudited Unaudited Unaudited Unaudited Audited
(NOK 1000) Q3 2014 Q3 2013 YTD 2014 YTD 2013 2013
Note Jul - Sept Jul - Sept Jan - Sept Jan - Sept Jan-Dec
Revenue 2 35 736 45 824 102 443 120 401 169 974
Total operating revenue 35 736 45 824 102 443 120 401 169 974
Cost of goods sold -24 923 -32 351 -68 935 -86 296 -116 979
Gross Margin 10 813 13 473 33 508 34 105 52 995
Gross Margin 30 % 29 % 33 % 28 % 31 %
Employee expenses -6 441 -3 696 -16 048 -11 168 -16 278
Other operating expenses -3 664 -4 122 -13 798 -11 475 -15 735
EBITDA before non-recurring items 707 5 655 3 662 11 462 20 982
Non-recurring items 3 - - -2 361 - -
EBITDA 707 5 655 1 300 11 462 20 982
Depriciation and amortisation -190 -308 -619 -862 -1 092
Operating profit (EBIT) 517 5 347 682 10 600 19 890
Finance income 4 4 682 278 7 573 1 969 3 042
Finance costs 4 -2 230 -3 092 -6 743 -11 113 -15 744
Profit before tax 2 969 2 533 1 512 1 456 7 188
Income tax revenue (+) /expense (-) -1 067 -720 -393 -414 -2 043
Profit for the period 1 902 1 813 1 119 1 042 5 146
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Consolidated Statement of Financial Position
A number of equipment deliveries during the last part
of the Quarter has led to higher trade receivables
compared to 2013
Long term borrowing is reclassified to current
borrowings due to maturity in less than 12 months.
The company intends to increase it’s bank overdraft
facility to repay loan in Q4
Unaudited Unaudited Audited
(NOK 1000) Note 30.09.2014 30.09.2013 31.12.2013
ASSETS:
Non-current assets:
Property, plany and equipment 1 892 1 785 1 574
Intangible assets 5 17 195 11 118 12 503
Total non-current assets 19 087 12 903 14 077
Current assets:
Inventories 6 004 4 560 5 109
Trade receivables 36 557 21 986 23 809
Contracts in progress 2 60 564 42 813 52 195
Other Receivables 4 165 4 998 5 035
Cash and cash equivalents 14 096 1 284 1 177
Total current assets 121 385 75 641 87 325
Total assets 140 472 88 544 101 401
Unaudited Unaudited Audited
(NOK 1000) Note 30.09.2014 30.09.2013 31.12.2013
EQUITY AND LIABILITIES
Equity:
Share capital 3 9 551 202 202
Share premium 3 77 450 - -
Translation difference -310 - -434
Retained earnings -31 618 -25 231 -21 127
Total equity 55 073 -25 029 -21 360
Liabilities
Deferred tax liabilities 5 457 6 740 6 817
Long term borrowings 6 - 29 900 19 967
Total non-current liabilities 5 457 36 640 26 783
Current liabilities
Current borrowings 6 19 900 - 10 000
Trade creditors 7 15 357 19 997 30 931
Contract accruals 2 31 192 24 233 22 058
Financial instruments 4 668 4 923 7 114
Income tax payable - 833 823
Bank overdraft 9 181 18 828 14 290
Other Current liabilities 3 644 8 119 10 762
Total Current Liabilities 79 942 76 933 95 978
Total liabilities 85 400 113 573 122 761
Total equity and liabilities 140 472 88 544 101 401
Consolidated Statement of Cash Flow
13
Comments to Q3 2014:
Total available cash and cash equivalents including overdraft facility amounts to 14 015
Negative cash flow from operating activities mainly due several equipment deliveries late
in the quarter and subsequent increased trade receivables
Cash flow from investing activities mainly used for product development (TNOK 1 925)
Cash flow from financing activities all relates to payment of instalment on loan
(NOK 1000) Q3 2014 Q3 2013 2013
Unaudited Unaudited Audited
Profit before income tax 2 969 2 533 7 188
Adjustments:
Net cash flow from operating activities -11 316 -3 016 4 371
Net cash flow from investing activities -2 081 -951 -3 715
Net cash flow from financing activities -10 100 - -
Net change in cash and cash equivalents -23 496 -3 967 656
Cash and cash equivalents ingoing balance 28 412 -13 577 -13 769
Cash and cash equivalents at end of period 4 915 -17 544 -13 113
1. Q3 Overview
2. Financials – Q3-2014
3. Scanship at a glance
14
Agenda
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
16 large cruise vessels with firm deliveries
until 2018 will be equipped with Scanship
systems
R&D driven with new game changing
technologies under development
One stop shop strategically located around
the cruise liner and yard clusters
15
Preferred supplier to the cruise industry for solutions
preserving water and air resources
6
R&DSales &
marketing
Engineering &
DesignProcurement Installation
Manufacturin
g & assembly
(outsourced)
Commissionin
g
Aftermarket:
Service, spares
& chemicals
Business model scope of services
In brief Locations
1 Tønsberg/Lysaker (NORWAY)
2 Fort Lauderdale (US)
3 Victoria (CANADA)
4 Turin (ITALY)
5 Gdynia (POLAND)
6 Busan (KOREA)
Scanship Holding ASA
Scanship Americas Inc. Scanship Poland Sp.z o.o
Scanship AS
100%
100% 100%
Scanship Canada Inc.
100%
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.
16 systems to be equipped on cruise newbuilds
under construction until 2018
Layout illustration of the Scanship AWP on the ship classes
NCL Getaway and RCCL Quantum built at Meyer Werft in
Papenburg, Germany
16
Total clean ship solution – market leading technology
Layout
illustration
for the
Scanship
Waste
Manage-
ment
system on
the Viking
Star
project at
Fincantieri
Waste
Management
system
Food waste
Incinerator
Waste recycling
Bio-sludge
AWP
(Advanced
Wastewater
Purification)
system
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
49 systems in operation whereas 45 systems
supplied to newbuilds and 4 systems supplied as
retrofits. 5 systems being equipped on cruise
newbuilds under construction until 2018
17
Scanship’s growth strategy is centred around current core and
neighbouring technologies & markets
Core New
Core
New
Market
Tech
no
lo
gy
Growth within core
New technologies for
core markets
MAP Waste-to-Energy
Water reuse units (AWP
add-on)
Other
Mini AWP: Adaptation of
existing technology
Underlying market growth
Increased focus on Total
Clean Ship
Increased focus on
aftersales
Offshore O&G
Yachts
Ferries
New solutions for
new markets
Container-based modular
water treatment systems
Customized solutions: Slop
water treatment and Cargo
wash water
Navy
Merchant
Onshore
2
1 3
4
Summary of scanship’s growth initiatives
Status
1
2
3
4
Improved local presence
Demonstrating benefits of
total solutions in sales
settings
MAP to be commercialized in
2015/2016
One system delivered to O&G
accommodation unit
Bidding to Korean yards
Container based solutions
ready for commercialization
Customized solutions built on
demand, currently being
marketed
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Scanship Holding ASA
Lysaker Torg 12
P.O. Box 465
1327 Lysaker
Norway
Phone: +47 67 200 300
E-mail: [email protected]
www.scanship.no
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