Archer Limited · OSL:ARCH
Archer — Q1 2021 Earnings Presentation
19 slides from Archer's earnings presentation, May 12, 2021
Slide 1: Archer Q1 2021 Presentation
Dag Skindlo Chief Executive Officer Espen Joranger Chief Financial Officer 12 May 2021
Slide 2: Disclaimer - forward looking statements
A Q1 2021 Disclaimer - forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results These statements include certain projections and business trends tha
Slide 3: Net debt
250 25 237 21.7 21.0 • 213 20 19.2 211 19.0 200 193 • 184 15.6 15 • 150 10 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 • • Net debt 15 14.1 600 588 575 • 10 550 6.7 525 520 • 6.2 6.4 504 507 500 5 4.2 500 475 0 450 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 3
Slide 4: • • • • •
• • • • • 517 346 344 322 280 417 352 388 316 296 4
Slide 5: Archer Wireline
A 212021 Archer Wireline Secured wireline backlog of NOK 3.5 billion for 2021-2026 Innovative Conveyance and logging solutions ConocoPhillips ConocoPhillips Integrated wireline contract with Equinor Gross contract value Gross contract value NOK 1.0B firm period + NOK 2.5B firm period Contract commen
Slide 6: Signed SPA to acquire DeepWell
A Q1 2021 Signed SPA to acquire DeepWell * DeepWell is a well intervention company focusing on high-tech wireline services * Good track record andreputation for both top side and subsea well intervention * 2020 turnover of more than $40 million ¢ Employedappr 200 employeesin 2020 * Invested more tha
Slide 7: DeepWell - Acquisition highlights
A 212021 wii trates DeepWell - Acquisition highlights More knowledge & Enterprise value NOK 177 million _ NOK130 million payable upon closing and NOK 47 million in 2022 pY4 Short payback Payback less than 3 years $ Financing Cash and available credit lines Financial summary Customary closing conditi
Slide 8: Growth in Well Services - EBITDA in 2022 likely 2 to 3 times higher than 2018
A 212021 Growth in Well Services - EBITDA in 2022 likely to be 2 to 3 times higher than 2018 Growth enablers Well Services- Revenue ¢ Key contract awards and strategic alliances ¢ Innovation and digitalization driving down cost and carbon footprint * DeepWell acquisition with increased 2018 Actuals
Slide 9: Platform Drilling, Modular Rigs & Engineering
A 212021 Platform Drilling, Modular Rigs & Engineering Financials Operations * Revenue decreased by 2.5% compared to Q4 * Active drilling rigs in the Platform Drilling portfolio stabile a compared to Q4. Unsuccessful on Taqa tender which will reduce * EBITDA decreased by $3.2 million quarter on quar
Slide 10: Land drilling
A 212021 Land drilling Financials Operations * Revenue increased 2.3% * Complex environment with several disruptions to operation * EBITDA increased by $2.0 million to $3.2 million * Negotiations with Pan American for extension of key contract is ongoing * Additional rig start-up cost . ; . . * Incr
Slide 11: Committed to reposition as part of energy transition
A 212021 Committed to reposition as part of energy transition ARCHER SUSTAINABILITY = Approximately 90% of Archer revenue . 7 Reduce Archer emissions. from brownfield = Review and explore opportunities for expansion of service offering Support clients net zero emission vision by Key supplier in long
Slide 12: Condensed profit & loss statement
A Q1 2021 Condensed profit & loss statement Condensed profit & loss $mi Q1 2021 Q12020 FY 2020 . wae . Operating revenues 194.1 207.6 | 715.1 * Operational revenue of $2136 million, is a decrease Relais Parewaa 193 295 | 1089 oi of $23.7 million or 10% YOY Total Revenues 2134 2371, 8240 ¢ EBITDA of
Slide 13: Condensed balance sheet
A Q1 2021 Condensed balance sheet Accounts receivables increased by $4.6 million following increased activity Increase in investment in associates following positive development in KLX Energy share-price in the quarter NIBD in line with guidance for the year, at $507 million end Q1 2021 Condensed ba
Slide 14: 2021 guidance
• • • • • • Revenues for 2021 expected to increase moderately from run-rate second half 2020 • EBITDA for 2021 expected 10-20% higher than 2020 • Capex between 3-4% of revenue • 1) 14
Slide 15: Q&A
Q&A
Slide 16: Segment key financials
Appendix — Segment key financials Eastern Revenues ($m) EBITDA (%) Hemisphere 200 167,2 1602 1642 166,0 [50% B . ° 10,0 % Platform drilling & woo latform drilling ry Engineering 50 5,0% Ot + 0,0% Q120 Q220 Q320 Q420 Qi2i $m Q120 0220 0320 a420— aia Revenues 16721602 —*1464_—*1642 EBITDA before excep
Slide 17: Quarterly financials (figures in $ million)
(Figures in $ million) Q1 20* Q2 20* Q3 20 Q4 20 Q1 21 . 17 17
Slide 18: Note on Q1 2020 quarterly financials
*Archer did not prepare separate quarterly financials for Q1 2020. The balance sheet items at March 31, 2020 could be impact ed by the allocation of charges in the P&L allocation of H1 2020 results into Q1 and Q2 2020 results. 18 18
Slide 19: Condensed cash flow statement - last quarters
Appendix Condensed cash flow statement - last 5 quarters (Figures in$ mi ) Qi 20 Q220 Q320 420 Qi 21 Operating activities 1.6 A 10.9 16.1 (4.0) Investing activities (4.5) (8.4) (0.3) (18.3) G.3) Financing activities 75.8 (85.6) (15.4) G9) G5) FX effect (9.4) 0.6 4.0 (2.4) (0.4) Total 63.5 (52.1) (0.