Turnover EBITDA - TTS Group ASA

TTS Group ASA
Presentation
Q3 2012
Oslo
November 8 th , 2012
Johannes D. Neteland
Arild Apelthun

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
• Market development
• 3 rd quarter consolidated accounts
• Shareholder structure
• Summary
2

Agenda
• 3 rd quarter headlines
3

TTS Group ASA
3 rd quarter 2012 Summary
• TTS finalized the sale of the Drilling Equipment unit and recorded an additional MNOK 120 gain, ending
at a total gain of MNOK 420. The finalization had a limited cash effect.
• All numbers and comments presented are related to continuing business unless otherwise stated.
• Earnings per share in the 3 rd quarter was NOK 1.46. For continued business EPS was NOK 0.12.
• Turnover is MNOK 481 in the 3 rd quarter, part of the decline is due to restructuring of Joint Ventures.
• EBITDA for 3 rd quarter was MNOK 39, slightly down from the same period in 2011 due to lower activity
in Service and Deck Equipment. Improved margins because of improved earnings in Cargo Access and
Joint Ventures.
• Order intake during the quarter was MNOK 501 reflecting lower activity in the market for Deck
equipment. However, high contracting activity relating to car carriers and other specialized vessels
represents the majority of the order intake.
• Order backlog at end of 3 rd quarter was MNOK 3 179, in line with 3 rd quarter 2011, but included the
order backlog from NMF.
• The General Assembly resolved to pay a dividend of NOK 1.56 per share and repayment of share
capital of NOK 4.21 per share. The dividends were paid during 3 rd quarter while the repayment was
done November 6 th .
• TTS finalized the acquisition of Neuenfelder Machinenfabrik GmbH (NMF) on the 20 th of August 2012.
NMF figures have been included in Marine division from this date and had a minor positive effect on the
EBITDA in 3 rd quarter.
4

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
5

TTS Group ASA
Turnover and EBITDA – 3 rd quarter
6
Turnover
800
700
600
500
400
300
200
100
0
481
603
Q3 2012 Q3 2011
EBITDA
MNOK MNOK
45
40
35
30
25
20
15
10
5
0
38,9
40,2
Q2 2012 Q2 2011
EBITDA margin 8,1% 6,7%

TTS Group ASA
Historical turnover development 2000 - 2011
MNOK
7
3 500
3 000
2 500
2 000
1 500
1 000
500
0
00 01 02 03 04 05 06 07 08 09 10 11
Offshore Handling
Equipment
Marine
Port & Logistics

TTS Group ASA
Order intake
MNOK
8
1 000
MNOK
800
600
400
200
0
646
839
664
Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
485
501

TTS Group ASA
Order Backlog Q3 2012
Order intake
and backlog
Q3 2012
Following the uncertain market outlook in
Deck Equipment, TTS has reviewed its
backlog. The MNOK 225 cancellation
represents postponed orders recorded in
2008/2009. The cancellation does not have
financial effects for TTS.
Order
backlog per
Q3 2012
By year of
delivery
9
MNOK
MNOK
MNOK Q3 2012 Backlog*
2 400
1 600
800
0
Order-
intake
898
Cancelled Q3 2012 Q2 2012
Marine 417 225 2 774 2 437
P&L 71 204 175
OHE 13 202 257
Total 501 225 3 179 2 869
*Order reserve includes 50% of Joint Ventures.
2 017
264
2012 2013 2014+

TTS Group ASA
Order cancellation Q1 2010 – Q3 2012
MNOK
10
250
200
150
100
50
0
68
73
125
178
11
19
0
64
8,5 5,7
Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12
225

TTS Group ASA
Order backlog* – per 30.09.2012
11
MNOK
3 500
3 000
2 500
2 000
1 500
1 000
500
0
2 774 2 723
202
204
3 179
279
119
3 121
30.09.2012 30.09.2011
Marine
Offshore Handling Equipment
Port & Logistics
TTS Group
*Order reserve includes 50% of JV
*NMF included 3Q 2012

TTS Group ASA
Order backlog* by division Q3 2008 – Q3 2012
MNOK
12
9 000
7 500
6 000
4 500
3 000
1 500
0
Marine
Port and Logistics
Offshore Handling
Euqipment
Total
*Order reserve includes
50% of Joint Ventures.

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
13

Marine
RoRo equipment, Hatch Covers, Side Doors, Cruise and Mega Yachts.
Winches and Deck Equipment, Cranes and Davits for ships.
• High contracting activity relating to car carriers and
other specialized vessels represents the majority of
the order intake this quarter.
• The backlog is up from last quarter and last year
mainly due to the inclusion of NMF. Due to the
prevailing market conditions for Deck Equipment,
TTS has reduced the order backlog with MNOK 225
for the Marine Division in the 3rd quarter.
• Low activity and difficult market for Services and
Deck Equipment are partly offset by improved activity
within Cargo Access.
• The market for equipment to Reefer vessels is
showing signs of improvement and TTS secured a
contract for equipment to 4 vessels in early
November.
• Change in Joint Ventures structure affecting reported
turnover but not activity level. Activity and earnings in
Joint Ventures in China remain high.
• Inclusion of NMF was finalized on August 20 th , and
expands TTS product offering and position in the
Marine crane market.
14

TTS Joint Venture operations in China
• Joint Ventures are recognized in the financial
statements according to the equity method. TTS
Group includes only its share (50%) of profit after
tax in financial reports.
• Turnover in Joint Ventures in 2011 exceeded NOK
1 Billion.
• Increased turnover also in Q3 2012.
• A weak market for bulkers lead to lower order
intake and some cancellations in the quarter.
• Still solid order backlog.
15
Numbers are on a 100% basis and in MNOK.

Port and Logistics
Equipment for Shipyards, Terminals and Industry.
• Low activity and low backlog at the start of the
year still affects earnings.
• Backlog for the period has increased
significantly from 3 rd quarter 2011 and
previous quarters. The main reason for the
improvement relate to ship lift contracts
secured in the quarter.
• Revenue is in line with the same period last
year. The loss in 3 rd quarter relates to low
activity within the port division in 2012.
• Due to weak market conditions, development
cost of approx. MNOK 22 related to
automation of port equipment written off in the
3 rd quarter.
• While investment activity in North Europe
remains at a relatively low level for port
business, there are still opportunities in this
market.
16

Offshore Handling Equipment
Drillship, rig, cranes, winches, gripper, AHTS and OSV segments
• Well positioned to take advantage of the
active offshore market.
• Improved order intake in the quarter relates
17
to offshore cranes.
• Higher activity compared to 2011 explains
the improved earnings. The change relate
to better margins on ongoing projects.
• Several major projects ongoing.
• Positive market outlook due to a strong rig
and drill ships market, with a continuous
trend of more sophisticated vessels,
requiring heavier and larger equipment in
deeper waters.

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
• Market development
18

World fleet outlook
Number of new ship orders
19

World fleet outlook
Orders, deliveries and removals of ships
20

Outlook Offshore Vessels
Global demand 2010 - 2016
21

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
• Market development
• 3 rd quarter consolidated accounts
22

TTS Group ASA
Profit and loss statement
23
Year
MNOK 2012 2011 2012 2011 2011
Turnover
EBITDA
Operating profit
Net financial items
Profit/loss before tax
3. quarter Per 3. quarter
481 603 1 560 1 993 2 594
39 40 122 93 171
10 32 82 74 144
-8 -12 -54 -43 -74
2 21 28 30 71
Net result continued business 10 15 36 8 38
Net result divested business 112 3 418 0 -15

TTS Group ASA
Turnover as per 30.09.2012
24
MNOK
2 200
2 000
1 800
1 600
1 400
1 200
1 000
800
600
400
200
0
1 260
1 560
1 685
204 187
96 131
Q3 2012 Q3 2011
1 993
Marine
Offshore Handling
Equipment
Port & Logistics
TTS Group

TTS Group ASA
EBITDA as per 30.09.2012
25
175 Marine
155
135
115
95
75
55
35
15
-5
-25
136,2
7,0
Q2 2012
-8,5
122,0
126,5
-25,0
4,8
Q2 2011
92,8
Offshore Handling
Equipment
Port & Logistics
TTS Group

TTS Group ASA
Balance Sheet
MNOK 30.09.12 30.09.11 31.12.11
Fixed assets 897 1 512 1 544
Current assets 1 754 2 019 1 984
TOTAL ASSETS 2 650 3 532 3 529
Equity 1 233 831 840
Long term liabilities 138 276 188
Current liabilities 1 280 2 425 2 500
TOTAL EQUITY AND LIABILITIES 2 650 3 532 3 529
• Total assets substantially down due to sale of Drilling Equipment unit.
• During the quarter a total of MNOK 16.5 of the convertible bond has been converted.
• Equity ratio at end of 3 rd quarter 2012 is 46.5%.
• The main changes from previous quarter relate to payment of dividends and additional gain from
sale of the Drilling Equipment unit.
26

TTS Group ASA
Equity share development
27
Percent
50
45
40
35
30
25
20
15
10
5
0
25,2 24,8
23,5 23,3
28,3
27,4
28,4 28,7 29,0
46,6 46,5
Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
* includes convertible bond
* * * *

TTS Group net working capital development
28
Working capital
increased significantly
during 3 rd quarter from
negative 330 to negative
47.
The main reason for the
increase in 3 rd quarter
relate to provisions for
the sale of Energy ,
acquisition of NMF and
remainder increase
working capital in other
operations.

TTS Group ASA
Consolidated cash flow and net interest bearing debt
MNOK
• Net interest bearing assets reduced with
MNOK 419 in the quarter. The reduction
from last quarter mainly relate to payment
of dividends, acquisition of NMF and
increased working capital.
• Convertible bond was MNOK 95.3 at end of
September. A total of MNOK 16.5 of the
convertible bond has been converted in the
quarter.
29
YTD
2012 2011 2011
Net cash flow from operations 58 305 409
Net cash flow from investments 940 -32 -57
Net cash flow from financial activities -868 -54 -190
Net change in cash (incl. translation adjustments) 130 220 162
Cash and bank deposits at the start of the period 435 272 272
Cash and bank deposits at the end of the period 565 492 434
• Cash flow influenced by payment
of an extraordinary dividend of
NOK1.56 per share, totaling
approx. MNOK 135. Net change
in cash in the period of MNOK
130.
MNOK Q3 12 Q2 12 Q1 12 Q4 11 Q3 11
Short term interest b. debt 45 21 577 755 793
Long term int. bearing
debt 29 37 313 35 96
Convertible Bond(*) 95 112 188 193 195
Total 169 170 1 078 983 1 084
Cash 565 985 567 435 492
Net interest b. debt(*) -396 -815 511 548 592
(*) Convertible loan included at nominal value
(*) Negative indicates asset position

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
• Market development
• 3rd quarter consolidated accounts
• Shareholder structure
30

TTS Group ASA
10 largest shareholders at 31st of October 2012
Rasmussengruppen AS 13.29%
Skeie Technology AS 10.31%
Lesk AS 6.13%
Stisk AS 6.13%
Skandinaviska Enskilda 6.11%
Barrus Capital AS 3.99%
Skagen Vekst 3.72%
SHB Stockholm 3.01%
Skeie Capital Invest 2.92%
Tamafe Holding AS 2.49%
Total 58.10%
31

Agenda
• 3 rd quarter headlines
• Order intake and order backlog
• Business segments
• Market development
• 3rd quarter consolidated accounts
• Shareholder structure
• Summary
32

Summary
• TTS finalized the sale of the Drilling Equipment unit and recorded an additional MNOK
120 gain. Total gain from sale of the Drilling Equipment unit was MNOK 420. The
finalization had a limited cash effect.
• General assembly in TTS resolved to pay dividends and repayment of MNOK 500. The
dividends were paid during 3rd quarter while the repayment is scheduled in November.
• Inclusion of NMF was finalized on August 20 th , and improved TTS position in the marine
crane market and complements TTS product offering.
• EBITDA slightly lower than same quarter last year due to lower activity in Services and
Deck Equipment. Better margins due to strong margins from Cargo Access and Joint
Ventures.
• Order intake is down from the same period last year, mainly due to weaker intake within
Deck Equipment. High contracting activity relating to car carriers and other specialized
vessels represents the majority of the order intake in the quarter.
33

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