samsung heavy industries risk management building event time gap (months) 20 4.5 2.5 3.0 currency...
TRANSCRIPT
Samsung Heavy Industries
Jun 2012 ※ MOJAH 266K LNG Carrier (332m×54m×27m)
Contents
Company Overview Global Markets Future Strategy
Stena Drillmax (219m ×42m×19)
3
· Business Highlights
· Order & Backlog
· Risk Management
· Financial Results
· Construction Business
※ LNG Carrier (302m×50m×27m) & LNG FPSO(336m ×50m ×32m)
Company Overview
1.6
4.7
7.1
6.1
10.5
8.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
0
5
10
15
20
2006 2007 2008 2009 2010 2011
Offshore
Ship
Revenue & OP margin
(KRWt) (%)
4
Business Highlights
Revenue of 2011
Offshore
40% Commercial
Vessels 52%
Construction 8%
(KRWt)
Backlog as of May 31, 2012
※ Construction division excluded
Offshore
61%
Commercial
Vessels 39%
(US$b)
EPS and DPS
(KRW) (KRW)
8.5
10.6 13.1 13.1
13.4
※ 2010~2011, K-IFRS Adopted
6.4
675
2,178
2,899 2,900
3,848 3,777
-
200
400
600
0
1000
2000
3000
4000
5000
2006 2007 2008 2009 2010 2011
EPS DPS
5
Order & Backlog
(US$b)
Order backlog
2012 New orders Details
※ As of May 31, 2012
Containerships (16%)
14.9 15.3 13.5
21.2
1.4
(US$b)
New orders
9.7 $6.0Bil (10 Units)
Drillships (45%)
LNG Carriers (7%)
Production Facilities (45%)
Order backlog Trend (US$b)
26.3
42.1
48.7
38.3 39.3 40.7 Drillships (29%)
Production Facilities (31%)
LNG Carriers (14%)
Tankers (9%)
Etc. (1%)
2006 2007 2008 2009 2010 2012.May
Offshore Commercial Vessels
2006 2007 2008 2009 2010 2011 2012.May
Rigs Production LNGC Container Tanker Others(Ferry, WTI)
6.0
Tanker (3%)
6
Risk Management
6
Building Event
Time Gap (months) 20 4.5 2.5 3.0
Currency
Receivables
Payables
Raw Materials
Main Engine
Machinery
Steel Plate
Bulk Parts
■ SHI focuses on minimizing profit volatility
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 of contract signing
No Hedge tools available for Steel plates, SHI put buffer in bidding price to cope with unexpected price hike
7
Financial Results
(KRWb) ■ Income statement
2009 2010 2011 2012
1Q 2Q 3Q 4Q Total 1Q
Sales 13,095 13,071 3,516 3,162 3,410 3,303 13,391 3,539
Shipbuilding
Construction
12,261
834
12,091
980
3,234
282
2,909
253
3,137
273
3,039
264
12,319
1,072
3,291
248
Operating Profit
(Margin)
794
(6.1%)
1,378
(10.5%)
392
(11.1%)
339
(10.7%)
233
(6.8%)
196
(5.9%)
1,160
(8.7%)
337
(9.5%)
Pre-tax income 855 1,262 396 348 188 219 1,150 328
Non-OP income
Non-OP expense
6,222
6,161
3,773
3,621
46
42
35
26
45
90
78
55
204
214
87
96
Net income 670 977 301 262 111 175 851 253
■ Balance sheet
8
(KRWb)
Financial Results
2008 2009 2010 2011 (A) 2012.1Q(B) B-A
Total Assets 26,084 20,188 18,440 16,414 15,762 -286
Cash & equiv.
Account receivable
Advance payments
Hedge related
Inventories
2,490
1,999
2,880
12,796
778
1,085
3,814
2,405
6,916
579
1,226
5,444
1,663
3,370
600
1,289
4,078
1,675
2,592
540
1,713
3,376
1,499
2,126
553
445
-698
-196
-466
27
Total Liabilities 23,760 17,347 14,343 11,770 10,972 -470
Advance receipt
Debts
Hedge related
8,632
158
12,518
5,658
2,780
6,817
5,329
2,221
3,578
5,602
1,784
2,452
5,211
1,739
1,831
-387
256
-621
Total Equity 2,324 2,841 4,097 4,644 4,790 184
Paid in capital
Treasury shares
1,154
-674
1,154
-671
1,154
-662
1,154
-661
1,154
-661
-
-
Total Liab. & Eqty 26,084 20,188 18,440 16,414 15,762 -286
9
■ Business overview ■ Main projects
※ As of May 31, 2012
Revenue and profit
Order backlog
Tril KRW
Building & Housing
70%
Civil & Plant
30%
Road Apartment
Office building
Hotel Townhouse
0%
2%
4%
6%
8%
10%
-
200
400
600
800
1,000
2006 2007 2008 2009 2010
Revenue Operating Profit
(KRWb)
Incineration plant
Museum
Construction Business
10
· Global New Orders
· Major Market Situation
- Commercial Vessels’ Market
- Offshore Market
※ Major products of SHI : Containership, LNG Carrier, Drillship and FPSO (clockwise from upper left)
Global Markets
-
20
40
60
80
100
120
140
160
180
'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12.Apr
LNG Carrier
Containership
Tanker
Bulker
Other
11
(Mn. GT)
46
35
77 74 69
116
177
111
30
AVG : 36
30 31
AVG : 73
AVG : 135
Increase of Sea trade volume together with chinese effect had lead shipbuilding orders for 2003~2008
After sharp decrease in 2009, new orders has been normalized to the level of 2003~2005
The orders of specialized vessels such as Drillship, LNGC and oversized Containership are increasing
76
50
Historical Orders by Shiptype and Countries
Korea
China
Japan
Global New Orders
9
Fleet vs backlog Freight index
Fleet (A)
Old Fleet (20yrs)
Backlog (B)
B/A
Bulk Carriers 351 56 109 31%
Tankers 249 12 44 18%
Source: Clarkson, as of May, 2012
(Mn. G/T) 11,459
950
08/1/2 08/9/2 09/5/2 10/1/2 10/9/2
120
54
B D I
W S
Bulk Carriers & Tankers : Overbooked
12/5/31
12 Source: Clarkson
Order trends and M/S by country
(Mn. G/T) [Bulk Carriers]
(Mn. G/T) [Tankers]
50% 31%
10% 9%
Korea China Japan Etc.
16%
59%
22% 4%
Korea China Japan Etc.
134
176 165
157
109
78
0
10
20
30
40
50
60
70
80
90
100
0
20
40
60
80
100
120
140
160
180
200
'07 '08 '09 '10 '11 '12(E)
Backlog
Delivery
New order
93 99
77 69
46 34
0
10
20
30
40
50
60
70
80
90
100
0
20
40
60
80
100
120
140
160
180
200
'07 '08 '09 '10 '11 '12(E)
Backlog
Delivery
New order
13
Fuel & charter cost ($/Ton)
Source: Clarkson, KMI
Containerships : Struggling for restricted new orders
(HRCI index)
(%)
Trade Growth & Fleets
Source: Clarkson
(mil.TEU)
13 11 11 10
4
-9
12 8
6.5
-15
-10
-5
0
5
10
15
-
5
10
15
20
25
'04 '05 '06 '07 '08 '09 '10 '11 '12(E)
Fleet
Trade Growth
New Order Trends
1,740
3,240
1,150
90
680
1,770
500
~800
0
500
1,000
1,500
2,000
2,500
3,000
3,500
'06 '07 '08 '09 '10 '11 '12(E)
(,000 TEU)
Source: Clarkson, SHI
Idle Fleets
Source: Clarkson
(,000TEU) (%)
0
2
4
6
8
10
12
0
200
400
600
800
1000
1200
1400
1600
1800
'10.1 '10.10 '11.01 '11.04 '11.09 '12.04
TEU
Ratio(%)
75 (0.5%)
1,600 (11%)
838 (5.3%)
1,406
514
720
615
0
200
400
600
800
0
400
800
1,200
1,600
'07.7 '08.1 '08.7 '09.1 '09.7 '10.1 '10.7 '11.1 '11.7 '12.5
HRCI
Bunker-C
50
70
90
110
130
150
170
190
210
Korea Japan China
198
67 14 65
3 5
Delivery Backlog
LNG Demand & LNGC Fleet Forecast
14
Energy Consumption & LNG Trading
Source: BP
(MTOE)
-
2,000
4,000
6,000
8,000
10,000
12,000
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09
Oil (35%)
Natural Gas (24%)
Coal (29%)
Hydro(7%)
Nuclear (5%)
2.3 Bil.Ton (consumption)
Pipeline 610(70%)
Trading
878
(Mil.Ton, ‘10)
LNG 268(30%)
Source: BP, Andy Flower
Economical
Eco-Friendly
LNGC Global M/S
(units)
89%
4% 7%
Source: SHI, 2000~2012.May
LNG Carriers : Warranted with solid demand
100 110 130 154 165
221 248
279
316
359
410
128 139
176
223 299
363
429 495
574
662
749
0
100
200
300
400
500
600
700
800
-
50
100
150
200
250
300
350
400
450
'00 '02 '04 '06 '08 '10 '12F '14F '16F '18F '20F
LNG Demand
LNGC Fleet
(Mil.ton) (units)
15
LNG Production & Supply Chain
LNG Derivatives : Convergence of Technology & Business
16
LNG FPSO
Supply Plan 10 vessels for 15 years
(5 Bil $/ vessel)
Target Field Australian northwest area
Capacity 3.5 mtpa
Storage 450k cbm
Progress Status 1st Vessel Contracted
Why LNG FPSO?
Capex Forecast for FLNG
Source: FlexLNG
Natural gas
Pre-treatment
Liquefaction
Shell LNG FPSO Project
LNG FPSO
Less Capex
[25%]
Mobility [cover more reserves]
Traditional onland plant
+
LNG FPSO Market – New Business Opportunity
0
3
6
9
12
15
18
21
'10 '11 '12(E) '13(E) '14(E) '15(E) '16(E) '17(E) '18(E) '19(E) '20(E)
(US$b)
Offshore Market – Why Deep Water?
Supply Increase in Deep Water
Source: Energyfiles
1930 1950 1972 1993 2007 2014 2030
Global Oil Supply 1930~2030 (mil barrels oil/d)
Conventional Onshore
Deep Water
Shallow Water
Oil Sands <Deep Water Supply Ratio> ‘00 ‘10 ’25(E) 2% 8.5% 13%
0
5
10
15
20
25
30
35
2000 2005 2010 2015F 2020F 2025F 2030F
shallow water
(mil. barrels oil/d) (mil. barrels oil/d)
Shallow water
Deep water
16
14
12
10
8
6
4
2
0
Source: Douglas Westwood 2011.May
Global Deep Water Capex (US$b)
0
20
40
60
80
100
120
140
160
2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F
Global oil price forecast
($/Barrel)
(110~160)
(90~110)
(70~90)
Source: EIA 17
18
Jack-ups
Drillship
Semi-submersible
Rig Types
Deep W
ate
r Shallo
w W
ate
r
Order History & M/S by country
Jack-ups 20%
Drillships 49% Semi-sub
31%
※ 2005~2012.3, Floating rig, value based (source : RS Platou, SHI)
(50%) (30%) (11%) (9%)
110US$b Orders
Deep Water Rig orders
Drilling Rig – Drillship is main stream
2
9 15
19
2 6
33
8 10
19 12
10
1 3
4
6
0
5
10
15
20
25
30
35
40
'05 '06 '07 '08 '09 '10 '11 '12.May
semi-sub
drillship
Korea Singapore China Others
Drillship
Semi Sub
Jack-up
Korea Singapore China Japan Others
Barge TLP
Semi FPSO
19
F.P.U
F.P.S.O
Fixed Platform
Facility Types
Deep W
ate
r Shallo
w W
ate
r
FPSO 64%
Semi 17%
TLP 13%
Barge 7%
※ 1996~2012.3, Floating Facilities, number based (Source : IMA, Clarkson)
154Unit Order
(44%) (28%) (2%) (14%) (12%)
Order History & M/S by country
Order forecast for Deep Water Facilities
2012(F) 2013(F) 2014(F) 2015(F)
New Demand 15 17 5 5
Replacement - 5 10 15
Total 15 22 15 20
Order Forcast(*) 8 11 8 10
Amount(mil $) 8,250 12,100 8,250 11,000
Source: BP, Energyfiles, *: New Construction 50%, Conversion 50%
(unit)
Production Facility – Following the Rigs
20
· Technological Leadership
· Green Future
· Vision & Growth Strategies
· Appendix
※ Sakhalin fixed platform built by SHI
Future Strategy
21
Growing environmental awareness creating eco-friendly product markets
Innovative technology and shrinking oil reserves are triggering new Arctic oil production era
Increasing demand for new products provides SHI with new business opportunities
LNG FSRU
Ice Drillship Icebreaking Tanker Ice Container
LNG FPSO CRUISE
Technological Leadership
High Oil Price (Bunker)
co2 Emission Regulation
22
Source: Clarksons
- Development of Required EEDI - EEOI - GHG Fund, ETS, Carbon Tax
- 1990~2000 avg: $90/ton
- Current price at 615$
Paradigm Change
Fuel Saving of ships
Need for
In Technology
Fuel Efficiency becomes Everything
In Operation
Higher Fuel Efficiency Ship Design &
Structure
Propeller Technology Energy Saving Device
Propeller Technology
Rudder Bulb Saver Fin
Green Future – Fuel Efficiency matters
23
Vision 2020
Vision
Objectives
Business Stream
Revenue : 36 Bil.USD OP margin : ↑ 10%
Stable Growth Growth Engines Seeds for Future
GLOBAL LEADER of OCEAN & POWER in 2020
Reinforcing Shipbuilding & Offshore business and expanding Heavy Electric Machines business
to consolidate future growth
<LNG FPSO>
<LNG Fuelled Vessel>
<Electricity Powered Vessel>
<Floaters>
<Subsea Plants>
<Offshore Wind Power >
Growth Strategies
Shipbuilding
Business Structure in 2020
Shipbuilding(36%)
Heavy Electric Machineries (24%)
Offshore (40%) Revenue
36 US$b
High-end & Specialized vessels with Eco-Friendly
and innovative technologies
Optimized Global Production System
Consulting business for operating shipyards
Shipbuilding Business
Improvement of offshore engineering abilities
Diversification related with offshore business (Subsea Etc.)
Offshore Business
Motors, Generators and Transformers Etc.
Automated Robots for special purposes
Offshore Wind-Power business
Heavy Electric Machineries Business
Subsea plants
25
■ Site 4.0million ㎡ ■ Quay Wall Length: 7.9Km Berthing Capacity: 24vessels
■ Dock 1 Dock : 283m x 46m 2 Dock : 390m x 65m 3 Dock : 640m x 98m G1 Dock: 270m x 52m G2 Dock: 400m x 55m G3 Dock: 400m x 70m G4 Dock: 420m x 70m G5 Dock: 162m x 150m ( for offshore only)
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
Floating Crane 3,000 ton 3,600 ton 8,000 ton
ShinHanne Factory
Floating Dock 1
Appendix - Shipyard View
Floating Dock 5
26
Global base
Global production and engineering bases enable SHI to meet various needs for customers
Oslo
London
Athens Tokyo
Koje
Shipyard Dubai
Rongcheng
Ningbo
Singapore
Houston
Shipyard
Overseas subsidiary
Branch office
Malaysia
Houston
India
Moscow
China
block
factory
Ningbo (Start :1997)
- 240,000 tons in 2008
- 250,000 tons in 2010
Rongcheng (Start: 2007)
- 56,000 tons in 2008
- 300,000 tons in 2010
Offshore
engineering
center
Houston
- Production facility engineering design
India
- Production facility basic design
Brazil
Appendix – Global Networks
27
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
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