Expro Group Holdings N.v. · NYSE:XPRO
Expro — Barclays CEO Energy-Power Conference 2023
32 slides from Expro's conference presentation, Sep 5, 2023
Slide 1: CEO Energy-Power Conference
CEO Energy-Power Conference September 5-7, 2023 | New York, New York NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Delivering technology, expertise and service
Delivering Unlocking technology, expertise energy answers and service for tomorrow for the wells of today Copyright 2023 Expro. All rights reserved. 3
Slide 4: Our Long-Term Value Creation Strategy
Our Long-Term Value Creation Strategy X P R O Maximize Expected Maintain Increase Margins A Balanced, Multi-Year Upcycle Through-Cycle Resiliency and Free Cash Flow Transparent Capital Allocation Framework Performance is a Core Value People | Partnership | Performance | Planet Copyright 2023 Expro.
Slide 5: Get to Know XPRO
Get to Know XPRO 60 ~8K TTM REVENUE1 $1,422m COUNTRIES EMPLOYEES Asia Pacific $2.6bn Market Capitalization2 15% $2.4bn North & Latin Middle East America North Africa 15% BY 37% REGION STRONG CASH DEBT FREE Enterprise Value3 FLOW OUTLOOK BALANCE SHEET with significant available liquidity Europe & Sub
Slide 6: Recently Sanctioned Projects and Spending Outlook Support Multi-Year Growth Cycle
Recently Sanctioned Projects and Spending Outlook Support Multi-Year Growth Cycle Number of Projects Sanctioned/Expected to be Sanctioned (#)1 Estimated Value of Projects Sanctioned/Expected to be Sanctioned ($Bn)1 291 Offshore accounts Deepwater FIDs +$150bn for >60% of sanction for 2022-2024, leve
Slide 7: Investment Momentum Shifting to International and Offshore Markets
Investment Momentum Shifting to International and Offshore Markets as Growth for North America Onshore Moderates Total Capital Investments by Year ($Bn)1 50% $ 600 Increased offshore and CAPEX North America Onshore International Offshore international investment (i.e., 40% long cycle development) 50
Slide 8: Expro Delivers and Derives Value by Providing Cost-Effective, Technology-Enabled Solutions
Expro Delivers and Derives Value by Providing Cost-Effective, Technology–Enabled Solutions o Digital Solutions for Tubular Running Services iTONG™/CENTRI-FI™ o Advanced Cementing Technologies SeaCure® | QuikCure® | Skyhook® o Integrated Surface/Subsea Solutions Hook-to-Hanger (PRT Offshore Acquisiti
Slide 9: Digital Solutions for Tubular Running Services
Digital Solutions for Tubular Running Services iTONG™ | CENTRI-FI™ Improving well integrity and reducing SAVES OPERATORS personnel on the rig floor. APPROXIMATELY iTONG™ helps protect personnel and $200k saves operators rig time (40% PER MONTH reduction in connection make-up times, 1 ½ hour reductio
Slide 10: Advanced Cementing Technologies
Advanced Cementing Technologies SKYHOOK® | SeaCure® | QuikCure® Our Wireless Top-Drive Cement Head ENABLED A RAPID with SKYHOOK® eliminates requirement to send personnel above the rig floor through our advanced wireless automation system. 17½” DRILL OUT IN SKYHOOK® increases safety and efficiency th
Slide 11: Integrated Surface/Subsea Solutions (PRT Offshore)
Integrated Surface/Subsea Solutions (PRT Offshore)1 Hook-to-Hanger™ Surface Equipment Simplified subsea technology and integrated surface handling solution that has been adopted by many key customers in U.S. Gulf of Mexico. Growth potential in ESSA and APAC from addition of PRT Offshore surface hand
Slide 12: Vessel-Deployed Light Well Intervention Services
Vessel-Deployed Light Well Intervention Services CAN REACH WATER Fully-integrated subsea intervention DEPTHS UP TO 2,500m system to reduce risk, lower operational costs, and increase customers’ efficiencies. IN RISER-LESS MODE Positively impacts project costs by eliminating the need for a drilling r
Slide 13: Fast Track LNG Expansion
Fast Track LNG Expansion Eni-Congo Expro is designing and constructing a modular, onshore gas pre-treatment $300m (OPT) facility and will provide long term OF REVENUE EXPECTED OVER THE NEXT 10 YEARS operations and maintenance (O&M) services. Designed to enable incremental gas (LNG) production and mo
Slide 14: Strong Business Momentum and Improved Operating Leverage
Strong Business Momentum and Improved Operating Leverage Driving Increased Adjusted EBITDA and Free Cash Flow Margin Quarterly Revenue Growth1 +65% Adjusted EBITDA Margin Trend3 Adjusted Contribution Margin2 +20% as a % of Revenue +40% as a % of Revenue Free Cash Flow Margin Outlook Support costs 8%
Slide 15: Strategic and Financial Flexibility Capital Allocation Framework
Strategic and Financial Flexibility Capital Allocation Framework Disciplined $0 DebtOUTSTANDING ORGANIC GROWTH Maintenance capex/ Growth capex Capital Allocation & 7-8% ~$300m OF REVENUE Debt Free Balance Sheet AVAILABLE LIQUIDITY VALUE-ADDED ACQUISITIONS to Leverage and/or compliment existing capab
Slide 16: Key Takeaways
Significant International and offshore Cost-effective, increase in number of technology- sanctioned projects, spending supports multi-year enabled solutions value of FIDs, and and a global reach customer CAPEX growth cycle Key Takeaways Improving activity Investment and mix and operating distributio
Slide 17: Appendix
Investors.Expro.com Downloadable Financials Our ESG report Appendix: Follow us on To learn even more about Expro, check out these additional places to get in touch with us. Connect with us on Subscribe to our channel
Slide 18: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue and Contribution Margin ($m)1 Adjusted EBITDA ($m)2 Contribution Margin Revenue up 65% Adjusted EBITDA and Adjusted EBITDA $450 Adjusted Contribution Margin 100% Margin excluding LWI-related mobilization, since Q4 2020 start-up and commissioning costs2
Slide 19: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA / Capital Expenditures ($m)3 Adjusted EBITDA3 Capital Expenditures $99 LWI-related mobilization, start-up and commissioning costs TTM Adjusted EBITDA minus Capex up ~$150m since Q4 2020 $
Slide 20: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Total Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $397 $397 $374 $374 $351 $351 $54 $348 $342 $65 $348 $342 $334 $339 $42 $334 $339 $326 $56
Slide 21: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 45% 44% 42% 43% 44% 45% 43% 43% 50% $397 41% 42% 42% 41% 42% 41% 42% $60 38% 40% 37% $374 40% $351 $50 $348 $342 $334 $339 30% $326 $330 $40 $313 $314 $144 $30 20% $139 $296 $284 $280 $20 $138 10% $156
Slide 22: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) 43% $70 45% 45% 50% $60 40% 41% 45% 42% 44% 44% 36% 38% 42% 42% 43% 43% 43% 39% 38% 39% 38% 38% 34% 41% 42% 41% 42% 41% 45% 36% 38% 37% 40% 40% 36% $60 38% 34% 35% 37% $50 33% 40% 35% $50 35% $40 30% 30% $40 25%
Slide 23: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $40 35% 30% 30% 26% 25% $40 27% 27% 30% $35 25% 26% 30% $35 $30 23% 23% 22% 21% 21% 21% 25% 21% 25% $30 19% 19% $25 18% 18% 18% 18% $25 16% 15% 15% 15% 20% 17% 16% 20% 15% 14% $20 15% 15% 14% $20
Slide 24: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Product Line and central costs TTM support costs down 3% Geography-based support costs with run-rate $103 $102 Aggregate support $101 $101 revenue up 18% costs since
Slide 25: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + $2,295 + $2,271 $2,178 $1,927 $1,878 $1,744 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Revenue from backlog, Revenue from backlog, re-estimations and other re-estimations and other Copyright 2023 Expro. All right
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q2 2023 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24
Slide 27: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM ($ in millions) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339
Slide 28: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended 31-Dec-21 31-Mar-22 30-Jun-22 30-Sept-22 31-Dec-22 31-Mar-23 30-Jun-23 Net Income (loss) $ (91) $ (11) $ (4)
Slide 29: Notes
Notes Copyright 2023 Expro. All rights reserved.
Slide 30: Notes
Notes Copyright 2023 Expro. All rights reserved.
Slide 31: Notes
Notes Copyright 2023 Expro. All rights reserved.
Slide 32: Get to Know
GET TO KNOW
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