Slide 1: Second Half Year 2023 Presentation
SECOND HALF YEAR 2023 PRESENTATION Oslo, 29 February 2024 Henrik Badin, CEO | Tina Tønnessen, CFO Photo: Henrik Badin
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets. The presentation includes and is based, inter alia, on forward-looking information and statements that
Slide 3: Looking back at 2023
LOOKING BACK AT 2023 Taking stock, forging ahead Backlog FY 2023 revenues FY 2023 EBITDA1 -2.5% 918.5 +17.3% -23.4 EBITDA 1 034 -4.5% y-o-y million y-o-y million million margin1 +921 m options Long list of projects successfully delivered Milestone contracts Significant revenue to customers confirmed
Slide 4: Record high project activity
RECORD HIGH PROJECT ACTIVITY 18 system deliveries to cruise new builds and 12 in commissioning during 2023 Total of 12 ships in commissioning Scanship deliveries includes systems for wastewater and handed over to owner ready for purification, food waste processing, waste management their respective
Slide 5: High activity in aftersales
HIGH ACTIVITY IN AFTERSALES Strong rebound in Aftersales after pandemic Aftersales business has grown to around 180 million in annual recurring revenue in 2023 42 Enjoying favourable position with leading cruise operators million and large installed base of Scanship systems Delivering spare parts, c
Slide 6: High project activity
HIGH PROJECT ACTIVITY Revenues in heat solutions more than doubled Faced with high energy costs and cost of emissions, heat intensive industries intensify their efforts to decarbonise and electrify C.H. Evensen technology has secured Vow a leading position with blue chip industry players across Euro
Slide 7: Important wins: Rhode Island project
IMPORTANT WINS Rhode Island project confirmed, and well underway USD 27 million contract to deliver complete biochar and renewable energy system Detailed engineering including process equipment, piping and electrical is wrapping up with major deliverables is well underway Main equipment deliveries t
Slide 8: Important wins: Vow Green Metals Phase II
IMPORTANT WINS Vow Green Metals confirmed Phase II, total scope expanded to 332 million Additional agreement for the delivery of pyrolysis technology signed. New total contract value is NOK 332 million Large C.H. Evensen reactor part of scope to double production capacity at Hønefoss plant (Follum)
Slide 9: Important wins: cruise newbuild and retrofit contracts
IMPORTANT WINS Several cruise newbuild and retrofit contracts awarded August 2023 October 2023 February 2024 USD 5 million retrofit EUR 3.7 + 4.2 million EUR 19.3 million 1+1 Wastewater purification Wastewater purification Wastewater treatment and system on cruise ship with system + waste handling t
Slide 10: Important contract wins
IMPORTANT CONTRACT WINS Cruise operators are increasingly keen to invest in Vow's zero-emission technologies Trendsetter Vow technology is setting a new standard for onboard waste and wastewater treatment Residues from wastewater and food waste are valorised into biochar and steam (heat) The process
Slide 11: Financials
FINANCIALS
Slide 12: Income statement
INCOME STATEMENT Key figures NOK million FY 2023 FY 2022 Financial performance affected by increased cost prognosis in projects Revenue 918.5 782.8 • Adjustments in recognised cost and total cost Gross profit 258.3 295.6 prognosis affect the current reporting period by reversing revenue (POC) and in
Slide 13: Segment information
SEGMENT INFORMATION NOK million FY 2023 FY 2022 INDUSTRIAL Share of total Revenues 364.5 304.3 SOLUTIONS 40% EBITDA before non-recurring -12.5 37.7 revenues EBITDA margin (%) -3.4% 12.4% Backlog (end of period) 450 441 MARITIME Revenues 375.5 358.6 Share of total 41% EBITDA before non-recurring 11.8
Slide 14: Balance sheet
BALANCE SHEET Key figures NOK million 31.12.23 31.12.22 Increase in intangible assets relate to investments in new technology for future growth Intangible assets and goodwill 588.1 512.1 Reduced working capital at year-end following working Accounts receivable 361.4 293.6 capital release in Q4 and d
Slide 15: Cash flow
CASH FLOW Key figures Neutral operating cash flow for the year following working NOK million FY 2023 FY 2022 capital release during the fourth quarter Cash and cash equivalents Investments for the period mainly relate to new technology 42.5 141.1 within Industrial Solutions at start of period Net ca
Slide 16: Comprehensive program for controlled and profitable growth
COMPREHENSIVE PROGRAM FOR CONTROLLED AND PROFITABLE GROWTH Comprehensive cost saving programme for 2024 Complete mapping of work processes, resulting in streamlined and simplified procedures, improved operational setup and increased efficiency in the delivery model Project reviews intensified with f
Slide 17: Markets, outlook and concluding remarks
MARKETS, OUTLOOK AND CONCLUDING REMARKS
Slide 18: Strong backlog and pipeline in cruise
STRONG BACKLOG AND PIPELINE IN CRUISE Significant and growing interest for pyrolysis solutions for newbuilds Current backlog comprises 32 confirmed Ships with Vow equipment orders for cruise ships under construction and options for another 15 In backlog, confirmed In backlog as ‘option’ Scanship’s s
Slide 19: Investments
INVESTMENTS NOK 300 million invested to position Vow in relation to powerful industry trends Digitalization of processes Technology development Pyrolysis Application development sewage sludge including valorization of syngas, liquid valorization and PFAS elimination 5% 17% fuels and biocarbon 13% Ap
Slide 20: Industrial solutions bid pipeline: largest ever window of opportunity
INDUSTRIAL SOLUTIONS BID PIPELINE LARGEST EVER WINDOW OF OPPORTUNITY With potential final investment decision towards 2029 By application By application By region in equipment value # of projects # of projects United Americas States 1 10% 10 20 18% 7% Asia 28 20 12 ~ NOK 25 billion 80 80 22% 43% 2 E
Slide 21: Trendsetters stepping up
TRENDSETTERS STEPPING UP Major industrial players are now taking decisive steps Outokumpu Elkem Committing to extensive use of Confirming long-term supply biocoke in its ferrochrome agreement for biocarbon produced production facility in Tornio, Finland by Vow Green Metals in Norway Acquiring equity
Slide 22: Focused business development
FOCUSED BUSINESS DEVELOPMENT Activity remains high in concrete opportunities with investment decisions imminent End-of-life tires Sewage plant FEED Caribbean Carbon Refinery® Currently designing first ELT NOK 10 million FEED for a Co-operation agreement plants, likely to be in the UK major project,
Slide 23: Concluding remarks
CONCLUDING REMARKS High activity and significant revenue growth in 2023, with long list of projects successfully delivered to customers Hit by inflation, cost escalation in projects, higher cost in commissioning from past years supply chain constraints, combined with record high project activity Mil
Slide 24: Believing in a future where industry is harmonized with nature
BELIEVING IN A FUTURE WHERE INDUSTRY IS HARMONIZED WITH NATURE