Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q2 2022 Earnings Presentation
22 slides from Expro's earnings presentation, Aug 4, 2022
Slide 1: Expro Q2 2022
EXPRO Q2 | 2022 NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Expro: We Are "Well Experts"
Expro: We Are “Well Experts” GROWING SHAREHOLDER VALUE Delivered Positioned to capture Meaningful cost • Strong financial profile Future facing outstanding significant upside and revenue • Free cash flow upside technologies operational from strong industry synergies from better position performance
Slide 4: Q2 2022 Expro Highlights
Q2 2022 Expro Highlights Q2 revenue increased 12% sequentially and 10% year-over-year on a proforma basis Adjusted EBITDA increased 39% sequentially and 33% year-over-year on a proforma basis Opportunistically repurchased 1% of shares outstanding under recently announced stock repurchase program Cus
Slide 5: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well North & Latin America Intervention (NLA) & Integrity $130 $47 Asia Pacific Subsea Well (APAC) Well Access Construction Q2 2022 1 Q2 2022 1 $48 $37 $122 Revenue: Revenue: by Geographic by Area of Middle East Market Capability North Africa $314m $314m (MEN
Slide 6: Q2 2022 Regional Highlights
Q2 2022 Regional Highlights Middle East & North Africa Expansion of Well Construction into new territory with first contract in Algeria, a significant revenue merger synergy leveraging North & Latin America off existing Expro footprint Awarded Well Test work Middle East & North Africa for a strategi
Slide 7: Customer and Technology Highlights
Customer and Technology Highlights iTONG™ Newly-acquired Distributed Emerging Well Construction Delivering critical and reliable World-first intervention Proud to receive Spotlight Fiber Optic Sensing safety technology delivers well integrity when operators technology gains market on New Technology®
Slide 8: Merger Synergies: Driving Margin Expansion
Merger Synergies: Driving Margin Expansion COST SYNERGIES REVENUE SYNERGIES 1 ~$55 million of annual run-rate $80-$100M in merger Complimentary capabilities, cost synergies within 12 months synergies expected operating footprints and following close, ramping up to within 24-36 months customer relati
Slide 9: Ahead of Plan on Integration and Synergies Capture
Ahead of Plan on Integration and Synergies Capture TOTAL EXPECTED COST SYNERGIES ($M) 100% of initial $55 million of merger synergies opportunity identified and actioned by June 30 Combined support EXPECTED IN FIRST costs declined from 24-36 MONTHS 31% of revenue in Q4 2020 SAVINGS IN FIRST IDENTIFI
Slide 10: Sustainable Solutions for Expro and Its Customers
Sustainable Solutions for Expro and Its Customers Flare Management Environmental Efficiencies Emissions Management Carbon Capture WELL FLOW MANAGEMENT WELL FLOW MANAGEMENT WELL INTERVENTION & INTEGRITY SUBSEA WELL ACCESS & WELL FLOW MANAGEMENT Customer reduced Green Carbon-efficient solution CoilHos
Slide 11: Our Inaugural ESG Report
Our Inaugural ESG Report Helping to address the critical energy challenges of today and engineering the answers of tomorrow • Commitment to achieve Net Zero Carbon Emissions by 2050 • Supporting Customers’ Carbon Reduction Objectives and playing a leading role in the Energy Transition • Expro’s Tale
Slide 12: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 35% $50 35% 30% $45 $45 30% 26% 30% $40 $40 22% 25% 23% 23% $35 21% 21% 21% $35 21% 25% 19% 19% $30 20% $30 18% 18% 15% 16% 15% 15% 15% 17% 16% 20% $25 14% $25 15% 15% 14% 12% 11% 15% 13% $20 $20 15%
Slide 13: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Management ($m) Well Construction Well Management $100 50% $90 40% 42% 40% 38% 41% 40% 38% 38% 37% $80 36% 35% 40% 35% 35% 33% $70 $326 $348 $342 $374 $330 $251 $233 $250 $251 $284 $313 $296 $280 $314 $60 30% $50 $40 20% $3
Slide 14: Revenue momentum will be driven by shorter-cycle production optimization projects
Q3 2022 2022 Revenue momentum will be driven by an increase in shorter-cycle, faster-return production optimization projects We expect revenue in the third quarter of 2022 will be Recovering offshore market beyond the next few quarters up +/- 8% sequentially We expect that Adjusted EBITDA Delivering
Slide 15: Appendix: Our ESG report
Appendix: To learn even more about Expro, check out these additional places to get in touch with us. Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Subscribe to our channel www.expro.com
Slide 16: Expro at a Glance: We Are "Well Experts"
EXPRO at a Glance: We Are “Well Experts” OUR REVENUE A DIVERSE SET OF GLOBAL CAPABILITIES IN: COUNTRIES EMPLOYEES INTERNATIONAL U.S. LAND OFFSHORE WELL MANAGEMENT WELL CONSTRUCTION Well Flow Management Sub-sea Well Access Well Intervention & Integrity Asia Pacific STRONG CASH FLOW OUTLOOK DEBT-FREE
Slide 17: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m) Well Management Well Construction Expro Frank’s XPRO Revenue up Legacy Adjusted 26% since EBITDA up Q4 2020 96% since Q4 2020 $374 $348 $342 $326 $330 $313 $314 $296 $51 $51 $51 $139 $284 $280 $45 $45 $45 $156 $139 $123 $251 $2
Slide 18: Historical Geographical Market by Region and Product Line
Historical Geographical Market by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $374 $374 $348 $342 $330 $348 $342 $326 $56 $42 $314 $326 $330 $38 $313 $44 $40 $313
Slide 19: Historical Support Costs
Historical Support Costs Support Costs ($m) Trailing Twelve Months ($m) Research, engineering and development Research, engineering and development Product Line and central costs Chart Title Product Line and central costs Geography-based support costs Aggregate support Geography-based support costs
Slide 20: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s XPRO Expro Frank’s XPRO Legacy $73 Legacy $66 $27 $18 $52 $44 $41 $40 $40 $32 $37 $37 $28 $26 $22 $33 $33 $48 $46 $17 $10 $10 $31 $15 $2 $10 $10 -$15 $13 -$7 $28 $6
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended TTM 2022 ($ in millions) 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 1
Slide 22: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 1,203 Cost of revenue, excluding depreciation and amorti