ir presentation december 2016 - samsungshi · - the formation of alliance group is expected to be...
TRANSCRIPT
IR Presentation December 2016
CONTENTS
Ⅱ. New order & Backlog
Ⅲ. Products & Market Situation
Ⅰ. Financial Highlights
CONTENTS
Ⅱ. New order & Backlog
Ⅲ. Products & Market Situation
Ⅰ. Financial Highlights
Revenue & Operating Profit
Quarterly Earnings
Annual Earnings (past five years)
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0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
-
5.0
10.0
15.0
20.0
2011 2012 2013 2014 2015
Revenue(Shipbuilding&Offshore)
Revenue(Others)
OP margin
13.4 14.5
14.8
9.7
8.7 8.3
6.2
1.4
(KRWt) (%)
12.9
2015 2016
3Q 4Q 1Q 2Q 3Q
Revenue 2,436 3,229 2,530 2,721 2,778
Operating
Profit
(OP Margin)
-10
( - )
30
(0.9%)
6
(0.2%)
-284
(-)
84
(3.0%)
Income before tax
-34 37 5 -216 111
Net Profit -25 -43 16 -212 129
□ Revenue: KRW 2.8t
- Increased by KRW 57b from the previous quarter
□ Operating profit: KRW 84b
- Turned into profit after recognizing operating loss in the previous quarter
and the same period in 2015
(KRWb)
Recent 5 Quarterly Results
-15.5
Financial Summary
연결 손익계산서
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2012 2013 2014 2015 2016 1Q 2Q 3Q 4Q 1Q 2Q 3Q
Revenue 14,490 14,835 12,879 2,610 1,439 2,436 3,229 9,714 2,530 2,721 2,778 8,029
Operating
Profit
(OP Margin)
1,206
(8.3%)
914
(6.2%)
183
(1.4%)
26
(1.0%)
-1,548
( - )
-10
( - )
30
(0.9%)
-1,502
( - )
6
(0.2%)
-284
(-)
84
(3.0%)
-194
(-)
Income before Tax
1,045 819 190 33 -1,498 -34 37 -1,462 6 -216 111 -99
Net Profit 796 632 147 11 -1,155 -25 -43 -1,212 16 -212 129 -67
Consolidated Statements of Income
(KRWb)
Financial Summary
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연결 대차대조표 증감 내용 Consolidated Statements of Financial Position
(KRWb)
2011 2012 2013 2014 2015 Sep 2016
16,414 16,635 17,427 17,122 17,302 16,475
Cash & Cash Equivalent 1,289 1,164 1,140 893 2,137 1,332
Inventories 540 699 842 1,169 1,449 1,290
Property Plant and Equipment 5,408 5,278 5,254 5,273 5,583 6,469
Accounts Receivable 4,078 5,091 5,935 6,400 4,710 5,241
Advanced Payments 1,675 1,501 1,354 1,204 895 365
FX Hedge Related Asset 2,592 2,064 2,035 1,113 1,225 630
Other 832 838 867 1,070 1,303 1,148
11,770 11,352 11,581 11,549 13,036 11,371
Advanced Receipts 5,602 3,967 3,885 3,799 3,928 2,462
Interest Bearing Debt 1,784 3,193 2,937 3,827 5,033 5,797
Accounts Payable 830 1,436 1,622 1,495 1,414 1,181
FX Hedge Related Liability 2,452 1,458 1,725 1,093 1,313 598
Others 1,102 1,298 1,412 1,335 1,348 1,333
4,644 5,283 5,846 5,573 4,266 5,104
Paid in Capital 1,155 1,155 1,155 1,155 1,155 1,155
Treasury Stock -659 -657 -656 -970 -970 -970
Retained Earnings 3,610 4,299 4,841 4,872 3,594 3,567
Others 538 486 506 516 487 1,352
253% 215% 198% 207% 306% 223%Debt/Equity Ratio
Total Liabilities
Total Assets
Total Equity
Risk Management
Improvement on risk management before/after the contract signing
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Pre-contract At execution
Risk assessment before bid participation
Prospect Selection Committee (ITT review incl.)
Cost Review Committee (Quantity review incl.)
Risk Review Committee
Contract terms Review Committee
Bid Review Committee
Bidding
only for risk hedging available projects
Contract Signing
Intensive risk analysis
& mitigation planning
Risk Workshop
Continuous risk verification & assessment
Specific action plans set-up
+3 months
of contract
Regular
Process
ITT issue
Award winning
KPI management
Factors to drive cost increase and construction delay
Regular KPI check and feedback
Lessons Learned System
To prevent repetitive errors,
lessons learned and improvements we’re making for current projects are systematically
recorded and applied to future projects
* Invitation to tender
Risk Hedging Policy
SHI Focuses on minimizing profit volatility
Building Event
Time Gap (months) 12 5 3 10
Currency
Receivable
Payable
Raw Material
Main Engine
Machinery
Steel Plate
Bulk Part
Contract Steel Cutting Keel Laying Launching Delivery
: Hedging, Order : Execution, Delivery
Foreign currency exposure is fully covered through forward transaction at the stage of shipbuilding contract
Main engine and machinery are ordered within 1~2 months after contract signing
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CONTENTS
Ⅲ. Products & Market Situation
Ⅰ. Financial Highlights
Ⅱ. New order & Backlog
November 2016
Trend
(USDb)
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7.3
New Order
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016
5.3
0.8
9.6
13.3
□ New Orders as of November 30, 2016
- 2 LNG vessels and 7 Crude Oil Tankers
∙ Including 1 LNG vessel and 1 Crude Oil Tanker which are
expected to be effective by December 2016
《 Market Demand 》
① Commercial Vessel
- With weak Chinese market appetite and momentum,
global over supply concerns resulted in extremely limited
number of demand for commercial vessels
∙ For the nine-month period ended September 30, 2016,
the number of new orders in the global market was
totaled at 321 units (22.9m DWT), 74% down vs. Sep 2015
∙ There was only 35 new orders in the global market
subjected to SHI’s participation such as LNG carriers,
large-sized containerships and crude oil tankers(A-Max and over)
② Offshore Facilities
- As low oil price level continues since 2Q 2014,
development of offshore project became unfeasible
due to project economy concern
Order Backlog
November 2016
Trend
(USDb)
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Unit USDb
Containership 12 1.9
LNG Carrier 16 3.3
Tanker 41 2.6
Drilling Rig 10 5.9
Production Facility 9 13.4
Others 5 0.6
Total 93 27.7
Others 3%
LNG Carrier
12%
Tanker
9%
Drilling Rig
21%
Production
Facility
48%
Containership 7%
0
5
10
15
20
25
30
35
40
45
2012 2013 2014 2015 2016
27.7
37.2 37.5
35.4 34.8
$27.7 billion (93 Units)
CONTENTS
Ⅱ. New order & Backlog
Ⅰ. Financial Highlights
Ⅲ. Products & Market Situation
New orders expected to gradually increase from 2017
- The formation of Alliance group is expected to be finalized by the end of 2016, and new orders will
pick up after newly formed Alliance group starts service in 2017
Supply & Demand Balance Global order trend & SHI market share
(Source: SHI)
(unit)
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(M/S)
Containership
10
62
51
120 22%
8%
0%
5%
10%
15%
20%
25%
0
20
40
60
80
100
120
140
'12 '13 '14 '15
Global Order (Over 10kTEU) SHI M/S
11 10
2012 2013 2014 2015
1,340 1,265
986
183
8.1%
4.0% 3.7%
0.9%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
200
400
600
800
1,000
1,200
1,400
1,600
'16(e) '17(e) '18(e) '19(e)
Delivery Fleet Growth Trade Growth
Trade growth to be stable above 6%
(,000TEU)
2016(e) 2017(e) 2018(e) 2019(e)
Short term demand is weak, but long term outlook is solid due to
stable LNG trade growth(CAGR 5%) and longer distances with US exports
LNG Carrier
Long term outlook of LNG trading & Fleets
= approximately 120 vessels needed
Global order trend & SHI market share
(Source: SHI)
(unit)
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(M/S)
(Source: GasLog, BP, Ernst & Young, Wood Mackenzie Jan 2015 )
2014 trading : approx 240mtpa
Current fleet
: approx 430 ships
(1.8ships/1mtpa)
~2030 trading(e) : approx 500mtpa Fleet outlook
: approx 900 ships
(= 30 ships to be
ordered a year
in avg )
< World LNG trading outlook>
CAGR 5%
2014 main routes New supply ~2030
32
39
64
27
13%
36%
8%
11%
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
10
20
30
40
50
60
70
'12 '13 '14 '15
Global Order SHI M/S
4
14
5 3
2012 2013 2014 2015
As downturn market condition continues, limited number of demand
for high specification drillship can be expected.
Drillship
Next generation: 20K BOP drillship
New demand for 20K BOP drillship is expected
- For safe and efficient operation in high-pressure
and high-temperature deep water reservoirs
Global order trend & SHI market share
(Source: SHI)
(unit)
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(M/S)
• BP-Maersk “Project 20K”
Jointly developing next generation drillship
using 20K BOP for Gulf of Mexico since
year 2013
* Drillship orders for the local content in Brazil included
(15 units in 2012 )
35
12
4
0
26%
42%
50%
0%
10%
20%
30%
40%
50%
60%
0
5
10
15
20
25
30
35
40
'12 '13 '14 '15
Global Order SHI M/S
9
5
2
2012 2013 2014 2015
Seeking both growth and profitability in offshore EPC market through
enhancement of EPC execution capability with ongoing projects
Production Facility
What we do for strengthening competitiveness Key projects under construction
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Ichthys CPF(Gas), Austrailia
Egina FPSO(Oil), Nigeria
Lessons Learned Program
- Accumulating and systemizing knowledge learned from current projects to execute following better
Reinforcement of engineering capacity
- New R&D center established only for FEED, FEED verification, detailed design etc.
- Recruiting experienced engineers and project managers
Organizational improvement
- Risk management team and offshore package procurement team established
SHI’s new growth engine
- Market to expand due to its cost benefit and environmental advantage
FLNG
Concept & Advantage
Production, treatment, liquefaction and offloading
of natural gas to be carried out on a vessel
- No need for extensive pipe lines and onshore
processing facilities
Less CAPEX required
Natural Gas
Pretreatment
Liquefaction
FLNG projects under consideration
Number Projects
Under construction
3 Prelude(Shell)
Kanowit, Rotan (Petronas)
Active 1 Mozambique(ENI)
Potential 34 Browse, Scarborough, Sunrise, etc.
Total 38
(Source: Clarkson World Offshore Register )
3 Projects will be complete during year '16~'18
1 Project is under review process
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Appendix- Global Network
Oslo
London
Athens Tokyo
Dubai
Rongcheng
Ningbo
Singapore
Houston
Kuala Lumpur
Houston
Deli
Rio De Janeiro
Lagos
Shipyard Block Factory Engineering Center Branch Office
Global production and engineering bases enable SHI to meet various needs of customers
Block Factories in China (2) Ningbo (Since 1997) , Rongcheng (Since 2007)
Offshore Engineering Centers (2) Houston [ASOG (J/V with AMEC)], Deli (Noida)
Branch Office (10) London, Oslo, Athens, Lagos, Dubai, Kuala Lumpur, Singapore, Tokyo, Huston, Rio De Janeiro
Geoje Shipyard
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Appendix- Shipyard View
Site : 4.0million ㎡
Quay Wall Length : 7.9Km (24 vessels)
3 Floating Cranes : 3,000 / 3,600 / 8,000ton
8 Docks (3 Dry Docks & 5 Floating Docks) ▪ No. 1 : 283m × 46m ▪ NO. 2 : 390m × 65m ▪ No. 3 : 640m × 98m ▪ G1 : 270m × 52m ▪ G2 : 400m × 55m ▪ G3 : 400m × 70m ▪ G4 : 420m × 70m ▪ G5 : 157m × 131m (only for Offshore)
SHI Focuses on minimizing profit volatility
Offshore Facilities
Dry Dock No.2
Floating Dock 3
Dry Dock No.3
Floating Dock 2
Floating Dock 4
Main Building
Dry Dock No. 1
ShinHanne Factory
Floating Dock 1
Floating Dock 5
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Disclaimer
This presentation has been prepared by Samsung Heavy Industries Co., Ltd. and contains forward-looking
statements that are subject to risks, uncertainties, and assumptions.
The presentation is solely for your information, subject to change without notice, and makes no
representation or warranty, expressed or implied and no reliability should be placed on the accuracy,
fairness, or completeness of the information presented herein.
The Company, its affiliates, or representatives accept no liability for any losses arising from any information
contained in the presentation.
The contents of this presentation may not be reproduced, redistributed or circulated, directly or Indirectly,
to any other person or organization, or published, in whole or in part, for any purpose.
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