Endur Asa · OSL:ENDUR
Endur Asa — Q4 2022 Earnings Presentation
29 slides from Endur Asa's earnings presentation, Feb 24, 2023
Slide 1: Endúr ASA Q4 and full-year 2022 financial results
Endúr ASA Q4 and full-year 2022 financial results 24 February 2023
Slide 2: Agenda
ENDÚR Q4 2022 PRESENTATION Agenda Group - Consolidated key figures and highlights - Group structure and strategy - Selected ongoing projects - Focus: Committed bank financing and private placement (subsequent event) Business segments - Aquaculture, Marine Infrastructure and Other - Key figures and h
Slide 3: Continued strong operating results and cash flow
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS Continued strong operating results and cash flow REVENUE ADJ. EBITDA ADJ. EBITDA MARGIN CASH FLOW FROM OPERATIONS NOK 668.3 million NOK 55.3 million 8.3% NOK 129.4 million +1% vs. Q4 2021 -11% vs. Q4 2021 -1.1 p.p. vs. Q4 2021 • Strong quarterly revenues Reven
Slide 4: 2022 represents major improvement on 2021
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS 2022 represents major improvement on 2021 REVENUE ADJ. EBITDA ADJ. EBITDA MARGIN CASH FLOW FROM OPERATIONS NOK 2 510.5 million NOK 230.7 million 9.2% NOK 266.7 +15% vs. FY 2021 +23% vs. FY 2021 +0.6 p.p. vs. FY 2021 • Strong growth in revenue, EBITDA Revenue*
Slide 5: Targeting group annualized revenue of NOK 4 billion by end of 2024
GROUP STRUCTURE AND STRATEGY Targeting group annualized revenue of NOK 4 billion by end of 2024 • Leading full-service provider for Aquaculture Solutions and Marine Aquaculture Solutions Marine Infrastructure Other Infrastructure in Norway and Sweden, servicing both public and private sector Artec A
Slide 6: Selected ongoing projects
PROJECTS Selected ongoing projects Aquaculture Solutions Marine Infrastructure Other Geo Salmo phase 1 Ferry quays Vestland Main routine KNM Thor Heyerdal Company Artec Aqua Company BMO Entreprenør Company Endúr Maritime Value NOK ~1.6 billion Value NOK ~100 million Value NOK ~30 million Client Geo
Slide 7: Significant reduction of finance costs through committed bank financing and private placement
FOCUS Significant reduction of finance costs through committed bank financing and private placement (subsequent event) Committed bank financing* and private placement NIBD & Leverage ratio • Sparebank 1 SR-Bank and Sparebank 1 SMN committed to term loans 600 10 equalling NOK 550 million (NOK 250 mil
Slide 8: Business segments
endur. Business segments
Slide 9: Aquaculture: Completion of Salmon Evolution BTA, design phase commencing for new projects
AQUACULTURE SOLUTIONS Aquaculture: Completion of Salmon Evolution BTA, design phase commencing for new projects REVENUE EBITDA EBITDA MARGIN -20% -93% -4.1 p.p. • Build-out of Salmon Evolution BTA Revenue EBITDA & EBITDA margin approaching final stage (delivery in Q1 376.3 364.6 22.3 2023) 400 25 30
Slide 10: Marine Infrastructure: Strong operating results and solid backlog
MARINE INFRASTRUCTURE Marine Infrastructure: Strong operating results and solid backlog REVENUE EBITDA EBITDA MARGIN +27% -10% -6.7 p.p. EBITDA & EBITDA margin • Strong revenue growth Revenue 56.1 56.1 Full-year EBITDA of NOK 182 mill. 311.1 50.5 60 60,00% • 350 (17.8%) 300 244.6 258.1 250.5 50 43.4
Slide 11: Other: Operating results from Endúr Maritime continuously improving
OTHER Other: Operating results from Endúr Maritime continuously improving ENDÚR MARITIME – EBITDA MARGIN ENDÚR MARITIME – REVENUE 9.4% +11.6% Endúr Maritime Revenue 60.6 Revenue split quarter • Best quarter since the inception of 58.7 62 60 “new” Endúr with high revenue and solid 58 9% margins 56 53
Slide 12: Financials
endur. Financials
Slide 13: Profit & loss
FINANCIALS Profit & loss Amounts in MNOK Q4 2022 Q4 2021 FY 2022 FY 2021 Actuals Actuals Actuals Pro forma* • High activity levels within Marine Continued operations Infrastructure and Other yields Operating revenue 667,2 658,9 2 492,2 2 173,3 highest ever quarterly revenue, Other revenue even as Sa
Slide 14: Balance sheet
FINANCIALS Balance sheet Amounts in MNOK Q4 2022 Q3 2022 Amounts in MNOK Q4 2022 Q3 2022 Actuals Actuals Actuals Actuals • Intangible assets largely related ASSETS EQUITY AND LIABILITES to acquisitions of Artec Aqua, Deferred tax assets Share capital 14 14 BMO Entreprenør and Marcon 0 0 Intangible a
Slide 15: Cash flow
FINANCIALS Cash flow Amounts in MNOK Q4 2022 Q4 2021 YTD 2022 YTD 2021 FY 2021 Actuals Actuals* Actuals Actuals Actuals • Strong cash flow from Profit/loss for the period -3,3 22,5 9,1 -51,8 -51,8 operations in Q4 2022 after Adjustments for non-cash items 37,3 -21,4 131,3 45,4 45,4 temporary tie-up
Slide 16: Net working capital (NWC) and net interest-bearing debt (NIBD)
FINANCIALS Net working capital (NWC) and net interest-bearing debt (NIBD) NWC NIBD & Leverage ratio Equity & Equity ratio • Reduction in NWC as operations 60 700 10 92 0 80,00% stabilize towards toward year- 56 687 end 677 • Fluctuations in NWC must be accounted for, but focus on 9 680 910 70,00% 66
Slide 17: Outlook & summary
endur. Outlook & summary
Slide 18: Market outlook
OUTLOOK Market outlook • Seasonally high tendering activity Backlog and early-phase projects* Aquaculture Solutions • Increased interest from abroad projects with foreign investors within Aquaculture Solutions • Final granting of permits take time, but still several early-phase Aquaculture Aquacultu
Slide 19: Solid FY 2022 and healthy outlook for FY 2023
SUMMARY Solid FY 2022 and healthy outlook for FY 2023 2022 revenue and EBITDA of NOK 2.5 billion and NOK 231 million (9.2%) Strong cash conversion while increasing revenue (2022 cash flow from operations of NOK 267 million) Year-on-year decrease in leverage ratio from 3.7x to 2.6x and commitment to
Slide 20: Q&A
endur. Q&A
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Slide 22: Appendix
endur. Appendix
Slide 23: Alternative performance measures
Alternative performance measures Basis for preparation Alternative performance measures (cont.) This presentation provides financial highlights for the quarter. The financial information in EBITDA - Profit/loss before i) tax, ii) net finance cost, iii) depreciation, amortisation, this presentation i
Slide 24: Key terms committed bank financing
APPENDIX Key terms committed bank financing 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 grid • NIBD / EBITDA >2.00 and <= 2.50: 3.60% •
Slide 25: Operating results per company
APPENDIX Operating results per company Artec Aqua (Aquaculture Solutions) Endúr Sjøsterk (Aquaculture Solutions) Amounts in MNOK Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Revenue 363,6 341,4 301,3 252,8 251,7 12,7 23,1 31,2 40,0 47,9 EBITDA 22,1 21,0 15,8 8,9 0,
Slide 26: Quarterly profit & loss
APPENDIX Quarterly profit & loss Amounts in MNOK Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Actuals Actuals Actuals Actuals Actuals Continued operations Operating revenue 658,9 609,9 625,3 589,8 667,2 Other revenue 4,4 1,9 12,6 2,8 1,0 Revenue 663,3 611,8 637,9 592,6 668,3 Cost of sales 447,8 408,2 399
Slide 27: Quarterly balance sheet
APPENDIX Quarterly balance sheet Amounts in MNOK Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Amounts in MNOK Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals ASSETS EQUITY AND LIABILITES Deferred tax assets 0 0 0 0 0 Share capital 14
Slide 28: Quarterly cash flow and statement of changes in equity
APPENDIX Quarterly cash flow and statement of changes in equity Amounts in MNOK Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Actuals Actuals Actuals Actuals Actuals Cash flow from operating activities -86,5 63,6 67,5 6,3 129,4 Cash flow from investing activities -440,6 -7,6 3,0 -8,0 -32,9 Cash flow from
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