Samsung Heavy Industries

Transcription

1 Samsung Heavy Industries March 2011

2 Contents Company Overview Global Markets Future Strategy Stena Drillmax (219m 42m 19)

3 HEAVY INDUSTRIES Company Overview Business Highlights Order & Backlog Risk Management Financial Results Construction Business LNG Carrier (302m 50m 27m) & LNG FPSO(336m 50m 32m) 3

4 Business Highlights Revenue of 2010 Construction 8% Commercial Vessels 41% Backlog as of Feb 28, 2011 Commercial Vessels 52% Offshore 51% Offshore Facilities 48% (KRWt) (US$b) Construction division excluded 4 Revenue & OP margin (KRWt) (%) Earnings per share and dividend (KRW) Offshore Ship Construction OP margin Earnings per share Dividend (KRW)

5 Order & Backlog Order backlog Tankers 19% Containerships Drilling 27% LNG Carriers 5% Rigs 31% Ferries 1% Customer by region Production Facilities 17% (US$b) As of Feb 28, 2011 New orders Production Rigs Ferries LNGCs Container Tankers (US$b) 9.7 Asia 10% Middle East & Africa 11% America 22% (Brazil 11%) Europe 57% (Greece 14%) (Norway 14%) Foreign exchange rate Jan 1, `08 Jan 3, `11 Difference CHY % JPY % KRW , % Source: Market data 5

6 Risk Management SHI focuses on minimizing profit volatility Building Event Contract Steel cutting Keel laying Launching Delivery Time Gap (months) Currency Receivables Payables Raw Materials Main Engine Machinery Steel Plate Bulk Parts : Hedging, order : Execution, delivery Foreign currency exposure has been fully covered through forward transactions since 2002 Main machinery including engine are ordered within 6 months of contract signing, while SHI has a buffer in bidding price against unexpected price hike for raw material like steel plate 6

7 Financial Results Income statement (KRWb) Q 2Q 3Q 4Q Total Sales 13,095 3,330 3,035 3,146 3,542 13,053 Shipbuilding 12,261 3,144 2,790 2,903 3,236 12,073 Construction Operating Profit (Margin) 794 (6.1%) 216 (6.5%) 260 (8.6%) 264 (8.4%) 257 (7.3%) 997 (7.6%) Pre-tax income ,149 Non-OP income 6,222 1, ,773 Non-OP expense 6,161 1, ,621 Net income

8 Financial Results Balance sheet (KRWb) (A) 2010(B) B-A Total Assets 26,084 20,188 17,995-2,193 Cash & equiv. 2,490 1,085 1, Account receivable 1,999 3,814 5,259 1,445 Advance payments 2,880 2,405 1, Hedge related 12,796 6,916 3,370-3,546 Inventories Total Liabilities 23,760 17,347 14,179-3,168 Advance receipt Debts Hedge related 8, ,518 5,658 2,780 6,817 4,966 2,487 3, ,237 Total Equity 2,324 2,841 3, Paid in capital 1,154 1,154 1,154 - Treasury shares Total Liab. & Eqty 26,084 20,188 17,995-2,193 8

9 Construction Business Business overview Main projects Revenue and profit (KRWb) 1,000 Revenue 800 Operating Profit 10% 8% Road Apartment 600 6% % 2% Incineration plant Office building % Order backlog Civil & Plant 33% Building & Housing 67% (KRWt,%) Townhouse Hotel As of Dec 31,

10 HEAVY INDUSTRIES Global Markets Shipbuilding Market Major Market Situations Drilling Rig Market Production Facility Market LNG FPSO Market Major products of SHI : Containership, LNG Carrier, Drillship and FPSO (clockwise from upper left) 10

11 Shipbuilding Market Global new orders (Mn. GT.) LNG Carrier Containership Tanker Bulker Other Sea Trade World GDP AVG : AVG : (YoY %) 18.0% 15.0% 12.0% 100 AVG : % % % 0.0% - '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10-3.0% Global economic recovery and rapid growth of Chinese economy lead shipbuilding order Regulation changes and need for substitution prompt a rush of new orders Replacement orders for single-hull tankers and old bulk carriers enlarged total orders in 2006 to

12 Major Market Situations Freight index M/S by country and vessel type ,612 WS B D I CCFI 1,215 1,054 1, Bulkers 8% 24% 19% 49% Tankers 8% 12% 29% 51% 07/1/5 08/1/5 09/1/5 10/1/5 11/1/5 Fleet vs backlog Fleet (A) Old Fleet Backlog (B) (Mn. G/T) B/A(Growth Average) Bulk Carrier % (5%) Tanker % (5%) Korea China Japan Others Container Ships LNG Carriers 4% 8% 11% 5% 5% 20% 68% 79% Containership % (9%) Source: Clarkson, as of Dec 31, 2010 Source: Clarkson, as of Dec 31,

13 Major Market Situations : Containership Fuel & charter cost 1,600 1, Jan. '07 Jul. '07 Fleet laid up (1%) 1,406 Jan. ' Jul. ' Jan. ' (10%) Jul. '09 HRCI Bunker-C 0-1,500 Oct. '08 Feb. '09 Jun. '09 Dec. '09 Oct. '10 Source: Clarkson, SHI 329 Jan. ' (12%) ($/Ton.) Oct. ' (th. TEU) 280(2%) 13 Cost comparison by speed Normal Slow steam Speed(knots) Voyage Days Charter cost(a) Fuel consumption(ton/day) Fuel cost(b) Total cost (A+B) (-12%) Source: NYK, 10.4 Demand forecast (K TEU) 2,000 1,500 1, ,000 (Mn. US$) CO2(th. Ton.) (-29%) '07 '08 '09 '10 '11 '12 supply demand trade growth (%) 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0%

14 Drilling Rig Market Rig Types Order History & M/S by country Shallow Water Jack-ups Jack-ups 21% Drillships Semi-sub 40% 39% 75.5US$b Orders Drillship Semi Sub Jack-Up Semi-submersible Korea Singapore China Others (47%) (28%) (11%) (14%) Deep Water Drillship 2005~2009.3, Floating rig, value based (source : RS Platou, SHI) Deep water rig orders (Unit) Semi Drillship '05 '06 '07 '08 '09 '10 '11~15(E)

15 Production Facility Market Facility Types Order History & M/S by country Shallow Water Fixed Platform Barge 5% TLP 15% Semi 17% FPSO 62% 111Unit Order Barge Semi TLP FPSO Deep Water F.P.S.O F.P.U Korea Singapore China Japan Others (46%) (16%) (14%) (3%) (22%) 1996~2008.8, Floating Facilities, number based (Source : IMA, SHI) Production facility orders (Unit) SPAR SEMI TLP FPSO '05 '06 '07 '08 '09 '10 '11~15(E)

16 LNG FPSO Market LNG FPSO Strong points of LNG FPSO Pre-treatment Liquefaction Mobility Less Capex Reliability Natural gas LNG FPSO LNG FPSO target market LNG FPSO order forecast Target Field Niche field Small field (10~600mt) Conventional field Large field (600~6000mt) (No. of projects) Large Medium 2~3 1~2 Capacity ~2.5 mtpa 2.5~6.0 mtpa Customer FPSO operators Major oil producers '08 '09 '10 '11~15(E) 16 Source: SHI

17 HEAVY INDUSTRIES Future Strategy Technological Leadership New Construction Method Wind Turbine Business Globalization Strategy Sakhalin fixed platform built by SHI 17

18 Technological Leadership Icebreaking Tanker Ice Drillship Ice Container LNG FPSO LNG FSRU 16,000 teu Container 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 18

19 New Construction Methods Maximizing dock capability Production process (Block size) No. of blocks Dock time Old method (300 tons) 100 blocks 60 days Mega block ('01) (3,000 tons) 10 blocks 45 days Mega block assembly Floating crane lift Giga block ('07) (5,000 tons) 6 blocks 30 days Tera block ('08) (10,000 tons) 3 blocks 25 days (115,000 톤유조선기준 ) Laying on F. dock Launching Crude oil tanker: 115K Combining floating docks and cranes significantly reduces dock time and maximizes efficiency New construction methods are the best way to satisfy growing market demand 19

20 Wind Turbine Business Business opportunity Economy of wind turbine Global US Japan Korea (USC/kWh) 10 0 Wind Nuclear Thermal Solar Source: Asia Pacific Energy Research Center Business plan Wind turbine structure Blade Drive train Nacelle Gear box Generator Tower Demand forecast (GW) Others China EU US US$ '10 '11 '12 '15 '20 (US$b) Source: Emerging Energy Research SHI s potentials Shipbuilding & Offshore Digital control system Research institute - Drive train designs - Quality management system - Wind turbine controller - Data acquisition - Aerodynamics & blade design - Noise & Vibration reduction 20

21 Globalization Strategy Global base Shipyard Overseas subsidiary Branch office London Oslo Moscow Houston Houston Athens Dubai India Rongcheng Ningbo Koje Shipyard Tokyo Brazil China block factory Offshore engineering center Shipyard joint venture Ningbo (Start :1997) - 240,000 tons in ,000 tons in 2010 Houston - Production facility engineering design Malaysia Singapore Rongcheng (Start: 2007) - 56,000 tons in ,000 tons in 2010 India - Production facility basic design Brazil (Atlantico Shipyard) - Assets US$780m, Capital US$220m (SHI:10%) - Suezmax, VLCC, Semi Rig Hull Global production and engineering bases enable SHI to meet ship buyers demands 21

22 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. 22