Annual Report 2020 03 ›
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Company ZITON A/S Bygholm Søpark 21E 8700 Horsens Denmark Website ANNUAL www.ziton.eu REPORT A20NNU20AL REPORT 2020 TABLE OF CONTENTS Crane at J/U WIND ENTERPRISE. TABLE OF CONTENTS ABOUT ZITON LOOKING FORWARD . 04 VESSELS . 06 HANGOUT . 10 MANAGEMENT AND BOARD . 12 CORPORATE STRUCTURE . 16 HISTORY OF THE COMPANY . 18 THE OFFSHORE WIND INDUSTRY AND O&M SERVICES MARKET DEVELOPMENT OF OFFSHORE WIND . 20 OFFSHORE WIND FARMS IN EUROPE . 28 ZITON’S SERVICE OFFERINGS . 30 OFFSHORE WIND FARMS – TYPICAL O&M SETUP AND ZITON’S SOLUTIONS . 32 DIGITAL TRANSFORMATION . 34 ENVIRONMENT, SOCIAL & GOVERNANCE . 36 STRATEGIC DIRECTION VISION AND MISSION . 40 STRATEGIC DIRECTION . 43 BUSINESS MODEL . 46 RISK MANAGEMENT . 50 BUSINESS PERFORMANCE ALTERNATIVE PERFORMANCE MEASURES . 54 HOW WE MEASURE PERFORMANCE . 56 2020 PERFORMANCE REVIEW . 58 OUTLOOK FOR 2021 . 60 CAPITAL STRUCTURE . 63 KEY FIGURES . 66 FINANCIAL STATEMENTS AND FINANCIAL REVIEW STATEMENT BY THE BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT . 68 INDEPENDENT AUDITOR’S REPORT . 69 FINANCIAL REVIEW AND STATEMENTS . 71 NOTES TO THE FINANCIAL STATEMENTS . 79 PARENT COMPANY FINANCIAL STATEMENTS . 111 ZITON · Annual Report 2020 03 › ABOUT ZITON LOOKING FORWARD ZITON CEO Thorsten Jalk shares his perspectives on how ZITON will evolve over the coming years. ZITON’s history began in 2007 with the scale the business. Recently, we have purchase of the vessel J/U WIND. Since built a beachhead in Asia to explore new then, we have expanded our fleet to four emerging markets. vessels and broadened our service to With an objective of reducing green- offer turnkey and full-service solutions. house gas emissions, governments and ZITON is located in the heart of Den- companies around the world are investing mark’s offshore wind industry. This has billions in renewable energy, and offshore allowed us to build early relationships wind is one of the industries expected with key customers and to be on the fore- to benefit from this development. With front of developments in offshore wind. the platform we have built at ZITON, we Over the past decade, we have developed believe we are poised to benefit from the and refined best practices for offshore growth of offshore wind in the coming wind O&M services together with our decades. We will continue to contribute customers. And over the years, we have to the industry with cost-effective O&M invested significantly to digitalise our services to further improve the levelized business, enabling us to cost effectively cost of energy. Thorsten Jalk, CEO, ZITON. FOUR PERIODS WITH DIFFERENT STRATEGIC FOCUS BUILD THE OFFER FULL-SERVICE SCALE THE LEVERAGE THE PLAT- FOUNDATION SOLUTIONS BUSINESS FORM FOR GROWTH COMPANY SIZE COMPANY 2015 2021 2007 2018 Turnkey solutions, Develop value-added Platform for expansion SERVICE OFFERING A jack-up with a crane including blade repairs and services of services decommissioning Fourth vessel purchased to Fleet expansion in line with VESSEL FLEET From one to three vessels Three vessels service 10+ MW turbines increasing turbine sizes Beachhead established for Platform for geographical GEOGRAPHY Northern Europe Northern Europe geographical expansion expansion Digitalisation with new Automation of processes Digitalisation making Connectivity with tech nologies such as DIGITALISATION and data-driven scalability of the business customers machine learning, apps decision-making possible and cloud 04 ZITON · Annual Report 2020 ABOUT ZITON ZITON’S EXPERIENCE 69% OF SITES ZITON is the market-leading service SERVICED provider within offshore wind operations & maintenance. ZITON has carried out more than 1,000 service interventions at 59 wind farms across 7 countries. ZITON has serviced more than two thirds of all northern European offshore wind farms GROWTH RATE 1,200 17% 1,000 ZITON has had an annual growth rate of 17% in the number of exchanges performed during the last ten years 800 600 400 Number of interventions accumulated Number of interventions 200 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 ZITON has had a market share of 46% in north- ern Europe over the past three- year period - double the market share of number two 46% COMPETITORS IN THE OFFSHORE O&M MARKET MARKET SHARE ZITON · Annual Report 2020 05 › ABOUT ZITON J/U WIND ENTERPRISE TECHNICAL SPECIFICATIONS GENERAL INFORMATION Length, overall: 100.0 m Width, overall: 40.0 m Hull depth: 8.0 m Pre-drive capacity, active: 6,750 t/leg Elevating speed: 0.7 m/minute Transit speed: Approx. 6 knots Accommodation: 28 single cabins for charterer and 20 single cabins for crew Ownership: Owned since January 2021 CARGO CAPACITY Payload: 4,500 t Main deck area: Approx. 2,850 m² MAIN CRANE AND LIFTING CAPACITY Main crane: Liebherr BOS 35000 Main crane boom length: 102 m Main crane max. lifting capacity: 800 t at 25 m radius at 116 m height above deck OPERATING CONDITIONS Service: Unrestricted (as per DNV rules) Endurance: 21 days Jacking operations - wave height: 2 m Jacking operations - wind: 15 m/s Jacking operations - tidal current: Up to 1.2 kn. Jacking operations - max. depth: Up to 48m 06 ZITON · Annual Report 2020 › ABOUT ZITON J/U WIND SERVER TECHNICAL SPECIFICATIONS GENERAL INFORMATION Length, overall: 79.6 m Width, overall: 32.3 m Hull depth: 7.4 m Pre-drive capacity, active: 2,700 t/leg Elevating speed: 1.0 m/minute Transit speed: Approx. 9 knots Accommodation: 24 single cabins for charterer and 15 single cabins for crew Ownership: Owned since 2014 CARGO CAPACITY Payload: 1,500 t Main deck area: Approx. 1,000 m2 MAIN CRANE AND LIFTING CAPACITY Main crane: Liebherr BOS 14000 Main crane boom length: 87 m Main crane max. lifting capacity: 400 t at 20 m radius at 96 m height above deck OPERATING CONDITIONS Service: Unrestricted (as per DNV rules) Endurance: 30 days Jacking operations - wave height: Up to 2.6 m Jacking operations - wind: Up to 15 m/s Jacking operations - tidal current: Up to 3 kn. Jacking operations - max. depth: Up to 45 m ZITON · Annual Report 2020 07 › ABOUT ZITON J/U WIND PIONEER TECHNICAL SPECIFICATIONS GENERAL INFORMATION Length, overall: 56.0 m Width, overall: 28.0 m Hull depth: 4.5 m Pre-drive capacity, active: 1,200 t/leg Elevating speed: 0.5 m/minute Transit speed: 5 knots (towed) Accommodation: 22 single cabins for charterer and 12 single cabins for crew Ownership: Owned since 2012 CARGO CAPACITY Payload: 650 t Main deck area: Approx. 530 m2 MAIN CRANE AND LIFTING CAPACITY Main crane: Liebherr BOS 7500 Main crane boom length: 78 m Main crane max. lifting capacity: 150 t at 19 m radius at 78 m height above deck OPERATING CONDITIONS Service: R2 (as per DNV rules) Endurance: 30 days Jacking operations - wave height: Up to 1.35 m Jacking operations - wind: Up to 14 m/s Jacking operations - tidal current: Up to 2.5 kn. Jacking operations - max. depth: Up to 34 m 08 ZITON · Annual Report 2020 › ABOUT ZITON J/U WIND TECHNICAL SPECIFICATIONS GENERAL INFORMATION Length, overall: 55.1 m Width, overall: 18.1 m Hull depth: 4.0 m Pre-drive capacity, active: 600 t/leg Elevating speed: 0.7 m/minute Transit speed: Approx. 6 knots Accommodation: 20 single cabins for charterer and 11 single cabins for crew Ownership: Owned since 2007 CARGO CAPACITY Payload: 220 t Main deck area: Approx. 430 m2 MAIN CRANE AND LIFTING CAPACITY Main crane: Liebherr LTR 11200 Main crane boom length: 28-110 m (telescopic) Main crane max. lifting capacity: 30 t at 30 m radius at 100 m height above deck OPERATING CONDITIONS Service: Weather restricted, site specific Endurance: 30 days Jacking operations - wave height: Up to 0.75 m Jacking operations - wind: Up to 10 m/s Jacking operations - tidal current: Up to 1 kn. Jacking operations - max. depth: Up to 35 m ZITON · Annual Report 2020 09 › ABOUT ZITON HANGOUT HangOut is a crane-supported work platform used for basic repair of the tip and the leading edge of a blade. REST ROOM AND The HangOut was invented and manufactured in CHANGING ROOM 2019 in collaboration with the Danish blade repair spe- cialists from Flex Wind A/S. Through its team of highly experienced blade technicians and years of know-how, Flex Wind saw the potential and need for a working PPE & TOOLS STORAGE platform for blade repairs, which offered safe and pro- tected working conditions for the technicians resulting in higher quality of the repairs. The solution is CE certified, approved by DNV and WORKING BENCH patent pending in EU and China. It is an advanced plat- form with refined technical installations, which is raised from the deck of the jack-up and lowered over the tip of the blade using vacuum suction cups. The HangOut con- VACUUM SUCTION CUPS tains all the necessary equipment to make the repairs, and it provides a safe and protected working zone for blade technicians, including a work bench, PPE and tools LIVING ROOM storage, spine boards, monitors, bins, compressors, an exhaust system, high-pressure cleaners, fire extinguish- ers, a rescue hatch and an act-safe rescue system. Furthermore, it is operational in harsher weather AIR CUSHION conditions than tolerated for basic blade repair per- formed using rope or other platform solutions, since it is possible to create the perfect humidity and tempera- ture, and thus the perfect work environment for blade GUIDE SYSTEM repair. This way, HangOut provides significantly more working days per year reducing costs and speeding up large-scale repair and leading-edge erosion campaigns significantly. At the same time, it also offers the oppor- tunity to conduct repairs of much higher quality in the factory-like conditions. The HangOut has a length of 12.4 metre, width of 4.1 metre and height of 3.4 metre.