Akastor Asa · OSL:AKAST

Akastor Asa — Q1 2020 Earnings Presentation

34 slides from Akastor Asa's earnings presentation, Apr 28, 2020

Slide 1: First Quarter Results 2020
Akastor ASA First Quarter Results 2020 Karl Erik Kjelstad (CEO) & Øyvind Paaske (CFO) Fornebu | 28 April 2020 Akastor © 2019 Akastor
Slide 2: Presenters and agenda
Presenters and agenda Group highlights Karl Erik Kjelstad Portfolio highlights Chief Executive Officer Financial update Øyvind Paaske Q&A session Chief Financial Officer Akastor © 2019 | AprilAkastor 2020 Slide 2
Slide 3: 1Q 2020 highlights
1Q 2020 highlights Revenue EBITDA Net Capital Employed Net Interest-Bearing Debt NOK 1.4bn NOK 137m NOK 5.8bn NOK 1.4bn  Revenue of NOK 1.4 billion, 33 percent growth year-on-year − Revenue of NOK 304 million from AKOFS Offshore (not consolidated)  EBITDA of NOK 137 million, 49 percent growth year
Slide 5: Akastor portfolio composition
Akastor portfolio composition Industrial investments Financial investments 100% 17% Leading global provider of first-class drilling systems, Global O&G manpower specialist products and services 50% USD 75m preferred equity International drilling, well service and engineering Global provider of subse
Slide 6: Impact of COVID-19 and low oil price on industrial holdings
Impact of COVID-19 and low oil price on industrial holdings Main operational impact • Logistical constraints are generating challenges with regards to service assignments due to quarantine regulations • Risk for delays on ongoing projects as a result of restrictions • The imbalance in the oil market
Slide 7: Key value drivers for our main portfolio assets
Key value drivers for our main portfolio assets NCE per 1Q 2020: NOK 3 613m NCE per 1Q 2020: NOK 1 105m NCE per 1Q 2020: NOK 874m NCE per 1Q 2020: NOK 645m 62% 19% 15% 11% Ownership agenda: Ownership agenda: Ownership agenda: Ownership agenda:  Buy-and-build strategy with  Secure order backlog and
Slide 8: Portfolio Highlights 1Q 2020 (1 of 2)
Portfolio Highlights 1Q 2020 (1 of 2) Drilling equipment Lifecycle services, spares and components Projects DLS  10% revenue growth compared to 4Q19,  High activity level through the quarter, driven by Awilco rig #2 mainly driven by spare part sale  Continued contribution for commissioning  Slig
Slide 9: Growing share of non-oil business for MHWirth
Growing share of non-oil business for MHWirth 40% of single equipment sales in FY19 Main non-oil products Main uses: • PBA is a niche market in on- and offshore projects for hard rock drilling. Extension for new applications in multiple areas Foundations for buildings, Pile Top Drill Bridges, Ports,
Slide 10: Frontica Engineering AS established by MHWirth in 1Q 2020
 Frontica Engineering AS established by MHWirth in 1Q 2020 as a separate entity (previously Engineering division of MHWirth)  Frontica Engineering is a provider of engineering services for offshore drilling facilities, processing installations and offshore wind systems  The company has a multidis
Slide 11: Portfolio Highlights 1Q 2020 (2 of 2)
Portfolio Highlights 1Q 2020 (2 of 2)  Solid revenue utilization for both vessels in Brazil  Skandi Santos to continue operating for Petrobras until end of November 2020  AKOFS Seafarer upgrade project in final phase, planned commencement on 5 years contract with Equinor ultimo 2Q 2020 Other indu
Slide 13: Financial highlights 1Q 2020
Financial highlights 1Q 2020 NOK million 1Q 2020 1Q 2019 1Q 2020 highlights Revenue 1 424 1 070 EBITDA 137 92  Revenue growth of 33 percent year-on-year EBIT 71 31  EBITDA up 49 percent year-on-year Net financials (393) 37  Depreciation and amortization of NOK 66 million in 1Q Profit (loss) befor
Slide 14: Key financials reconciliation
Key financials reconciliation 1Q 1Q 1Q 1Q Revenue (NOK million) 2020 2019 Net financial items (NOK million) 2020 2019 MHWirth 1 154 962 Odfjell Drilling (51) 47 AGR 217 30 Awilco Drilling (32) 13 Cool Sorption 43 60 NES Global Talent (104) 17 Other 10 30 DOF Deepwater (71) (6) Elimination - (11) AKO
Slide 15: Cash flow and net debt position
Cash flow and net debt position Net debt bridge 1Q 2020 highlights NOK million  Net interest-bearing debt position increased by NOK 697 million to NOK 1 388 million 1 637  “ Other” includes FX effect of NOK 331 million (non-cash) 228 (387) 1 388  Liquidity reserve of NOK 1.4 billion per end of 20
Slide 16: Net Capital Employed as per 1Q 2020
Net Capital Employed as per 1Q 2020 NOK million 645 (439) 874 (1 388) 1 105 5 798 4 410 3 613 1 081 Other Net Capital NIBD Equity (excl. Market Cap Employed hedge reserve) 31.03.2020 Note: Step Oiltools is consolidated as part of MHWirth from Q1 2020 Akastor © 2019 | AprilAkastor 2020 Slide 16
Slide 17: MHWirth
MHWirth Highlights 1Q 2020 Installed base per 1Q 2020  Project & Products revenues were NOK 534 million, an increase of Full package (rigs) Installed base by age 13% compared to last year 0-5 Fixed >20  DLS & DT revenues were NOK 620 million, an increase of 27% 14 21 18 compared to last year  EBI
Slide 18: AKOFS Offshore
AKOFS Offshore Highlights 1Q 2020 Fleet overview Vessels Loc. 2019 2020 2021 2022 2023 2024 2025  Revenues and EBITDA of NOK 304 million and NOK 175 million, respectively +3 years option  Good revenue utilization for both vessels in Brazil AKOFS Seafarer  Skandi Santos to continue operating for P
Slide 19: NES Global Talent
NES Global Talent Recent development Award winning workforce solution specialist  Strong year-over-year growth driven by both organic growth and Global organization M&A with local client  Continued growth in number of contractors, however at declining touch-points through rate over last quarter a
Slide 20: Other industrial holdings
Other industrial holdings Highlights 1Q 2020  Other industrial holdings reported pro-forma consolidated revenue and EBITDA of NOK 260 million and NOK 18 million, respectively  AGR: Revenues and EBITDA of NOK 217 million and NOK 17 million, respectively  Cool Sorption: Revenues and EBITDA of NOK 4
Slide 22: Transactions track-record since inception in 2014
Transactions track-record since inception in 2014 June 2019 April 2019 September 2018 April 2018 October 2018 Merged for an economic 100% acquisition of 50% sale to interest stake of 55% Preferred equity ~6% share purchase investment USD 31.5m USD 142.5m USD 75m1) USD 10m November 2017 June 2017 Mar
Slide 23: ODL preferred equity and warrant instrument
ODL preferred equity and warrant instrument Preferred equity of USD 75m Warrant structure Instrument description: Instrument description:  5% cash dividend + 5% PIK per annum (semi-annual payment)  The total warrant issue comprise six tranches with 987,500 warrants per tranche, amounting to a tota
Slide 24: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement First Quarter Full Year NOK million 2020 2019 2019 Revenue and other income 1 424 1 070 5 361 Operating expenses (1 286) (978) (4 870) EBITDA 137 92 492 Depreciation, amortization and impairment (66) (62) (270) Operating profit (loss) 71 31 222 Net financial i
Slide 25: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position March 31 December 31 NOK million 2020 2019 Deferred tax asset 488 388 Intangible assets 1 759 1 593 Property, plant and equipment 789 760 Right-of-Use assets 576 537 Other non-current assets 39 65 Non-current interest bearing receivables 248 201
Slide 26: Condensed Consolidated Statement of Cash flows
Condensed Consolidated Statement of Cash flows First Quarter NOK million 2020 2019 Profit (loss) for the period (407) 62 (Profit) loss for the period – discontinued operations 116 - Depreciation, amortization and impairment 66 62 Other adjustments for non-cash items and changes in operating assets a
Slide 27: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to  Net current operating assets (NCOA) - a measure of working capital. It the consolidated financial statements prepared in accordance with IFRS. is calculated by current operating assets m
Slide 28: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) March 31 December 31 March 31 December 31 NOK million 2020 2019 NOK million 2020 2019 Non-current borrowings 1 849 1 444 Current operating assets 4 545 3 758 Current borrowings 20 3 Less: Current operating liabilities Gross debt 1 869 1 448 3 596 3 169 Deriv
Slide 29: Key figures
Key figures AKASTOR GROUP NOK million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2019 Revenue and other income 1 070 1 304 1 430 1 557 1 424 5 361 EBITDA 92 114 133 153 137 492 EBIT 31 27 76 88 71 222 CAPEX and R&D capitalization 16 23 22 66 19 127 NCOA 521 875 1 010 611 1 135 611 Net capital employed 4 721 5 23
Slide 30: Split per Company (1 of 4)
Split per Company (1 of 4) MHWIRTH NOK million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2019 Revenue and other income 962 1 088 1 173 1 219 1 154 4 442 EBITDA 92 121 136 148 136 497 EBIT 39 57 93 98 82 287 CAPEX and R&D capitalization 16 21 20 64 16 121 NCOA 855 1 216 1 141 736 1 268 736 Net capital employed 2
Slide 31: Split per Company (2 of 4)
Split per Company (2 of 4) AKOFS OFFSHORE 1) NOK million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2019 Revenue and other income 258 234 295 306 304 1 093 EBITDA 136 104 175 145 175 560 EBIT 56 24 94 64 94 237 CAPEX and R&D capitalization 144 110 130 234 71 618 NCOA 76 138 104 49 205 49 Net capital employed 3 4
Slide 32: Split per Company (3 of 4)
Split per Company (3 of 4) AGR NOK million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2019 Revenue and other income 30 156 167 221 217 573 EBITDA 2 (1) 1 12 17 14 EBIT 2 (7) (4) 7 13 (1) CAPEX and R&D capitalization - 2 2 2 2 6 NCOA (2) - 10 12 9 12 Net capital employed 12 153 161 170 171 170 Order intake 18 81
Slide 33: Split per Company (4 of 4)
Split per Company (4 of 4) OTHER HOLDINGS NOK million 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2019 Revenue and other income 90 68 100 96 53 354 EBITDA (2) (6) (5) (7) (16) (20) EBIT (11) (24) (13) (17) (24) (64) CAPEX and R&D capitalization - - - - - - NCOA (331) (342) (142) (137) (142) (137) Net capital empl
Slide 34: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u

Akastor — Q1 2020 Earnings Presentation on 6ix

Akastor Asa — Q1 2020 Earnings Presentation

Slide 1: First Quarter Results 2020

Slide 2: Presenters and agenda

Slide 3: 1Q 2020 highlights

Slide 4: Portfolio companies highlights

Slide 5: Akastor portfolio composition

Slide 6: Impact of COVID-19 and low oil price on industrial holdings

Slide 7: Key value drivers for our main portfolio assets

Slide 8: Portfolio Highlights 1Q 2020 (1 of 2)

Slide 9: Growing share of non-oil business for MHWirth

Slide 10: Frontica Engineering AS established by MHWirth in 1Q 2020

Slide 11: Portfolio Highlights 1Q 2020 (2 of 2)

Slide 12: Financial update

Slide 13: Financial highlights 1Q 2020

Slide 14: Key financials reconciliation

Slide 15: Cash flow and net debt position

Slide 16: Net Capital Employed as per 1Q 2020

Slide 17: MHWirth

Slide 18: AKOFS Offshore

Slide 19: NES Global Talent

Slide 20: Other industrial holdings

Slide 21: Appendix

Slide 22: Transactions track-record since inception in 2014

Slide 23: ODL preferred equity and warrant instrument

Slide 24: Condensed Consolidated Income Statement

Slide 25: Condensed Consolidated Statement of Financial Position

Slide 26: Condensed Consolidated Statement of Cash flows

Slide 27: Alternative Performance Measures (1 of 2)

Slide 28: Alternative Performance Measures (2 of 2)

Slide 29: Key figures

Slide 30: Split per Company (1 of 4)

Slide 31: Split per Company (2 of 4)

Slide 32: Split per Company (3 of 4)

Slide 33: Split per Company (4 of 4)

Slide 34: Copyright and disclaimer