Electromagnetic Geoservices Asa · OSL:EMGS
Electromagnetic Geoservices Asa — NFF – Seismic Day (June 2007)
30 slides from Electromagnetic Geoservices Asa's conference presentation, June 2007
Slide 1: emgs presentation
emgs presentation June 2007 CEO Terje Eidesmo NFF – Seismic Day Oslo
Slide 2: Disclaimer
Disclaimer This quarterly presentation includes and is based, inter alia, on forward-looking information and statements that are subject to risks and uncertainties that could cause actual results to differ. Such forward-looking information and statements are based on current expectations, estimates
Slide 3: Agenda
Agenda Highlights The seabed logging industry emgs’ positioning Financials Summary & Outlook
Slide 4: Group highlights
Group highlights Strong market development Breakthrough for seabed logging on the Norwegian Continental Shelf Vessels, equipment and people to support growth plan through 2008 Secured capital for future growth Expects revenues of USD 160-170 Listing on Oslo Stock Exchange March 30, 2007 million in 2
Slide 5: The seabed logging industry
The seabed logging industry
Slide 6: Evolving exploration beyond seismic
Evolving exploration beyond seismic Seismic The emgs solution • Detects structure but not fluid content • Remote detection of offshore hydrocarbons • Long turnaround time; 6+ months • Rapid turnaround; days ~25% exploration > 90% technical success rate success rate • High uncertainty before drilling
Slide 7: The seabed logging applications
The seabed logging applications Prospect finding Prospect ranking Prospect/field appraisal Relevant to frontier, young and Relevant to known prospects Relevant to known prospects mature basin exploration & fields Single or multiple survey lines Coarse grid of survey lines crossing a prospect Fine gr
Slide 8: Seabed logging is becoming a market force
Seabed logging is becoming a market force More and more companies adopt USD million the seabed logging technology 450 400 Anticipated market potential of 350 USD 200 million in 2007 300 250 In emgs’ opinion the market could 200 potentially double annually 150 beyond 2007 100 Seabed logging can reach
Slide 9: emgs' positioning
emgs’ positioning
Slide 10: Technology leader with control of vital resources
Technology leader with control of vital resources All hardware, software and methodology in-house Ownership of all products Highly experienced group of geologist and geophysicists More than 30 employees with Ph.D Collaboration with a range of research institutes and organizations R&D agreements with
Slide 11: Operational experience and a fully integrated offering
Operational experience and a fully integrated offering Data Pre-survey processing Output and Contracting Surveying modeling and advice interpretation
Slide 12: Global Platform
Global Platform Trondheim Stavanger Oslo London Paris Houston Rio Kuala Lumpur
Slide 13: Experienced Management Team
Experienced Management Team Terje Eidesmo President and CEO CFO QHSE Svein Knudsen Jørn Hausmann Global Sales Global Marketing Odd Tjelta Ken Feather R&D Administration Svein Ellingsrud Jo Temre Geology & Asia Pacific Operations North Business Unit South Business Unit Geophysics Business Unit Erik S
Slide 14: Proven track record
Proven track record Over 250 commercial surveys Southeast Asia Over 40 wells drilled More than 90% success rate Demonstrated growth ability Norway (Troll)
Slide 15: Strong long-term customer relations
Strong long-term customer relations Accumulated no of clients 40 36 35 29 No. of customers 30 25 23 20 14 15 10 10 5 5 3 1 0 2000 2001 2002 2003 2004 2005 2006 2007
Slide 16: Customer case: The Aker Exploration contract
Customer case: The Aker Exploration contract Minimum value of USD 30.8 million Option for USD 6.7 million in 2007 Annual options contract for 2008-2011 Maximum value of USD 196 million Barents Sea, Norwegian Sea and North Sea A complete seabed logging package – from pre-survey to interpretation
Slide 17: Customer case: The Rocksource contract
Customer case: The Rocksource contract Minimum value USD 12 million 25 survey lines (maximum 50) Approximately three months Large upside potential Seabed technology will be used by Rocksource in early exploration phase
Slide 18: R&D agreement with Statoil
R&D agreement with Statoil Recently signed agreement with Statoil to develop new and improved software and methods for the analysis of electromagnetic data from seabed logging emgs will develop new software routines for processing and imaging of electromagnetic data Statoil will fund the project and
Slide 19: Financials
Financials
Slide 20: Financial highlights – Q1 2007
Financial highlights – Q1 2007 Q1 revenues of USD 25.9 million Q1 influenced by non-recurring cost items of USD 8.6 million EBITDA loss of USD 8.0 million Q2 revenues of USD 35-40 million expected
Slide 21: Summary & Outlook
Summary & Outlook
Slide 22: emgs holds a strong and unique position
emgs holds a strong and unique position Breakthrough for seabed logging technology in a strong and rapidly growing market Strong proprietary position across the value chain - from concept to technology and applications Unique operational experience - years ahead of the competition Highly profitable
Slide 23: Outlook
Outlook Continue to develop new contracts to secure the 2007 revenue goals and set a good start to 2008 Summer season looks promising with fifth vessel being mobilized in Q3 Revenue expected at USD 160- 170 million in 2007 1997 2007 2017
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Condensed Income Statement
Condensed Income Statement USD million Quarterly Year to date Full year Q1 2007 Q1 2006 2007 2006 2006 Revenues 25.9 25.6 25.9 25.6 117.7 Charter hire, fuel and crew expenses 18.8 13.4 18.8 13.4 62.7 Employee expenses 11.1 2.7 11.1 2.7 18.2 Other operating expenses 3.9 2.3 3.9 2.3 16.2 EBITDA (8.0)
Slide 27: Balance Sheet
Balance Sheet USD million Quarter ended Quarter ended 31 Year ended March 2007 31 March 2006 31 December 2006 ASSETS Cash and cash equivalents 12 834 2 578 20 485 Trade receivables 24 309 15 751 31 910 Other current assets 138 606 2 856 8 767 Total current assets 175 750 21 185 61 162 Intangible ass
Slide 28: Condensed Statement of Cash Flow
Condensed Statement of Cash Flow USD million Quarterly Full year Q1 2007 Q1 2006 2006 Net cash flow from operating activities (3 001) (5 731) (4 017) Net cash flow from investing activities (4 087) (2 216) (14 352) Net cash flow from financial activities (563) 7 976 36 305 Net profit (loss) (7 651)
Slide 29: Ownership Structure (as of May 14)
Ownership Structure (as of May 14) Shareholder Shares Holding Warburg Pincus 46,307,312 63.05% State Street Bank & Trust 2,477,031 3.37% Bjarte Bruheim 1,410,302 1.92% JP Morgan Chase 1,214.100 1.65% Fortis Bank Luxembourg 1,196,058 1.63% Morgan Stanley & Co. 1,035,011 1.41% Investors Bank and Trust
Slide 30: The seabed logging pioneer
The seabed logging pioneer Patent filings - Integrated part of overall business strategy The first idea 1997 - 150 patents filed and more than 60 patents granted or accepted world wide Patent process First patent 1998 1. Prior art investigation application 2. Filing 3. External opposition 1998 - 200
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