Endur Asa · OSL:ENDUR
Endur Asa — Investor Presentation (January 2023)
28 slides from Endur Asa's investor presentation, Jan 11, 2023
Slide 1: Endúr ASA Investor Presentation
Endúr ASA Investor Presentation 11 January 2023
Slide 2: Important information (I/II)
Important information (I/II) THIS PRESENTATION AND ITS CONTENTS ARE NOT FOR DISTRIBUTION OR RELEASE, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES OF AMERICA AND THE DISTRICT OF COLUMBIA
Slide 3: Important information (II/II)
Important information (II/II) This Presentation contains information obtained from third parties. Such information has been accurately reproduced and, as far as the Company is aware and able to ascertain from the information published by that third party, no facts have been omitted that would render
Slide 4: Today’s presenters
Today’s presenters Jeppe Råholt Pål Reiulf Olsen Einar Olsen Chief Executive Officer Chairman Chief Financial Officer Former CEO of BMO Entreprenør Over 30 years of experience from various Long experience from CFO roles board positions and financial advisory 4
Slide 5: Agenda
ENDÚR INVESTOR PRESENTATION Agenda Transaction Introduction to Endúr Financials and outlook Appendix 5
Slide 6: Overview of the contemplated refinancing
TRANSACTION Overview of the contemplated refinancing Sources of funds NOK million Transaction structure and main objective Equity private placement 130-160 • Endúr ASA is contemplating to refinance its existing NOK 900 New term loan facility 550 million bond Repurchased bonds held on own account 90
Slide 7: Attractive new capital structure with substantially lower financing cost
TRANSACTION Attractive new capital structure with substantially lower financing cost Gross debt1 Net debt2 Leverage ratio Financing cost3 NOK million NOK million Net debt / adj. EBITDA (LTM) NOK million 895 2.9 677 85 (2.5 – 2.7 Q4 22e) (810m x 10.45%) 572-602 Reduction 2.5-2.6 ~NOK 2 per share 635
Slide 8: Agenda
ENDÚR INVESTOR PRESENTATION Agenda Transaction Introduction to Endúr Financials and outlook Appendix 8
Slide 9: Leader in Marine Infrastructure and Aquaculture Solutions
ENDÚR GROUP Leader in Marine Infrastructure and Aquaculture Solutions Consolidating two fragmented niche market segments with attractive growth EBITDA split Q3’22 Group companies Adj. EBITDA & margin Marine Infrastructure 188 165 • BMO: Norwegian niche player in the rehabilitation of bridges, quays,
Slide 10: Experienced team delivering on Endúr’s transformation
ENDÚR GROUP Experienced team delivering on Endúr’s transformation Key management Board of Directors Jeppe Raaholt Einar Olsen Kenneth Andersson Paal R. Olsen Bjørn Finnøy Jörn Ryberg Group CEO Group CFO CEO, Marcon Gruppen Chairman Board Member Board Member Ingegjerd Eidsvik Aleksander Rød Kristine
Slide 11: Key achievements
ENDÚR GROUP Key achievements Discontinued / divested unprofitable and non-core businesses Improved and stabilized profitability in Endúr Maritime and Endúr Sjøsterk Significant reduction in overhead expenses Strengthened financial control, liquidity management and governance Debt reduced by 50% with
Slide 12: Leader in niche Marine Infrastructure services in Norway and Sweden
MARINE INFRASTRUCTURE Leader in niche Marine Infrastructure services in Norway and Sweden Project: Varåa and Børke bridges for Bane Nor • Norwegian niche player in the rehabilitation of bridges, quays, dams, rail and other concrete/steel structures Surface treatment, removal and • Presence across No
Slide 13: Marine Infrastructure delivering high, sustainable margins
MARINE INFRASTRUCTURE Marine Infrastructure delivering high, sustainable margins BMO revenue and EBITDA % 600 40.0 % NOK million Strong position in attractive niche 500 479 508 35.0 % markets 500 449 30.0 % 399 400 25.0 % 313 300 20.0 % 15.0 % 200 17.0 % 17.2 % 16.7 % 17.6 % Highly specialized compe
Slide 14: Turnkey supplier of onshore aquaculture and feed barges
AQUACULTURE SOLUTIONS Turnkey supplier of onshore aquaculture and feed barges Project: GeoSalmo • Leading turnkey supplier of onshore aquaculture facilities • Well-positioned across post-smolt, brood stock and grow-out Turnkey supplier of land- • Flowthrough, hybrid and RAS systems based salmon grow
Slide 15: Capitalizing on high growth in landbased aquaculture
AQUACULTURE SOLUTIONS Capitalizing on high growth in landbased aquaculture Artec Aqua revenue Proven operations for Salmon Evolution NOK million 1 259 1,043 637 454 340 378 146 169 2015 2016 2017 2018 2019 2020 2021 LTM Q3'22 Artec Aqua EBITDA Pipeline forming basis for long-term growth NOK million
Slide 16: Agenda
ENDÚR INVESTOR PRESENTATION Agenda Transaction Introduction to Endúr Financials and outlook Appendix 16
Slide 17: Group financials and 2022 outlook
FINANCIALS AND OUTLOOK Group financials and 2022 outlook Revenue Adj. EBITDA 227 – 232 NOK million NOK million YTD Q3 ‘22: 175 2,392 – 2,442 Q4 ‘22e: 52 – 57 YTD Q3 ‘22: 1,842 Q4 ‘22e: 550 – 600 2 186 188 2021 pro-forma 2022 estimate 2021 pro-forma 2022 estimate • Solid underlying growth and tenderi
Slide 18: Endúr is generating robust free cash flow
FINANCIALS AND OUTLOOK Endúr is generating robust free cash flow Illustrative free cash flow based on Q3 LTM figures and new capital structure NOK million 238 37 1. Capex substantially below P&L depreciation (NOK 53m GAAP 31 depreciation) 35 1 2. Reduced interest cost related to 9 bond/bank debt fro
Slide 19: Endúr growth opportunity
FINANCIALS AND OUTLOOK Endúr growth opportunity Ambition by year end 2024 Aquaculture • Exponential growth in fish protein and Solutions strong pipeline • International growth >NOK 4 billion annualized revenue • Growth in other species • Increase share of own products and services 10-12% EBITDA +70%
Slide 20: Agenda
ENDÚR INVESTOR PRESENTATION Agenda Transaction Introduction to Endúr Financials and outlook Appendix - Risk factors 20
Slide 21: Risk factors (I/IV)
RISK FACTORS Risk factors (I/IV) Introduction An investment in the Company involves inherent risk. Prospective investors should carefully consider, among other things, the risk factors set forth below before making an investment decision in respect of the Company's shares (the "Shares"). The risks a
Slide 22: Risk factors (II/IV)
RISK FACTORS Risk factors (II/IV) 1.5 The Group is subject to project risk Project risks have previously constituted a persistent risk factor for the Group, first and foremost in relation to the Group taking on large and extensive projects, particularly with respect to the Group's marine infrastruct
Slide 23: Risk factors (III/IV)
RISK FACTORS Risk factors (III/IV) 2.2 Risks related to cash flow and liquidity The Group monitors and manages the financial risks related to its operations through internal reports and analysis. However, the Group is exposed to various risks such as working capital risk, liquidity risk, interest ra
Slide 24: Risk factors (IV/IV)
RISK FACTORS Risk factors (IV/IV) 3.1 Risks related to taxation Uncertainties related to, and changes in taxation law or the interpretation thereof, may affect the business, results of operations and financial condition of the Group. To the extent tax rules change, this could have both a prospective
Slide 25: Agenda
ENDÚR INVESTOR PRESENTATION Agenda Transaction Introduction to Endúr Financials and outlook Appendix - Supplementary information 25
Slide 26: High level terms of the new debt facilities (i)
APPENDIX High level terms of the new debt facilities (i) NOK term loan facility Margin grid SEK and NOK term loan facilities • Size NOK 250 million • NIBD / EBITDA <= 2.00: 3.55% • Quarterly payments with interest rate of 3-month NIBOR plus a margin based on margin • NIBD / EBITDA >2.00 and <= 2.50:
Slide 27: High level terms of the new debt facilities (ii)
APPENDIX High level terms of the new debt facilities (ii) Foreign exchange and interest rate hedging facility • Size NOK 10 million • Margin to be agreed for each contract • Initial maturity of 2 years and thereafter subject to yearly renewal. The Facility will terminate on the Termination Date for
Slide 28: endur.
endur.