Expro Group Holdings N.v. · NYSE:XPRO
Expro — Investor Presentation (October 2021)
31 slides from Expro's investor presentation, October 2021
Slide 1: Positioned for Sustainable Growth & Value Creation
Positioned for Sustainable Growth & Value Creation October 2021 NYSE: XPRO | Expro.com 1
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, as amended. All statements, other than statements of historical facts, included in this presentation that address a
Slide 3: Compelling Investment Thesis
Compelling Investment Thesis Expro: A Full-Cycle Energy Services Leader 1 Broad services offering provides scale, breadth and through-cycle resiliency 2 Diversified customer base with strong revenue visibility 3 Future-facing technologies position company for Energy Transition 4 Frank’s merger deliv
Slide 4: Expro at a Glance
Expro at a Glance Who We Are Company Snapshot 1 Full-cycle energy services leader with Operations in over 60 a diverse set of global capabilities in: countries; best-in-class safety and service quality • Well Construction • Well Flow Management Resilient business model to • Subsea Well Access drive
Slide 5: Strategic Priorities
Strategic Priorities Deliver Achieve Complete Well Drive Digital Enable the Succeed Extraordinary Synergies Life Cycle Transformation Energy through our Performance Solutions Transition People Continuously strive to Significant revenue Develop a balanced Evolve our digital Advance and develop Nurtur
Slide 6: Scale, Breadth and Through-Cycle Resiliency…
Scale, Breadth and Through-Cycle Resiliency… Diversified offering across the full well lifecycle Revenue ~70% International Portfolio Across Diversified Customer Base (7% U.S. Land) the Well Lifecycle with Strong Revenue Visibility 2020 Revenue by Geography: 2020 Revenue by Product Line Group: 2020
Slide 7: …with Cyclical Recovery Upside
…with Cyclical Recovery Upside Brent Crude Pro Forma Price Revenue ($m) Revenue Brent Price $105 $3,000 $99 $85 $2,500 $72 $65 $64 $2,000 $55 >$70 $54 $45 $45 $1,500 $43 COVID-19 $2,533 $25 $1,978 $1,000 $1,261 $1,390 $1,213 $1,085 $5 $1,065 $500 ($15) $0 2014 2014 2015 2015 2016 2016 2017 2017 2018
Slide 8: Broad Capabilities across the Well Lifecycle
Broad Capabilities across the Well Lifecycle Differentiation through faster, lighter, more automated operations, and delivery of “knowledge as a service” Initiation of Production Drilling & Completions Production Optimization P&A Stage of field (years) + (8) (6) (4) (2) 2 4 6 8 10 12 16 18+ Explorat
Slide 9: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Well Intervention & Well Construction Well Flow Management Subsea Well Access Integrity Innovative, high value, low risk well Proficiently gathering valuable well and Ensuring safe, efficient and cost effective Deployment, insight and enhancement const
Slide 10: Specialty Services within Well Construction
Specialty Services within Well Construction Transforming the construction and completion of wells to drive efficiency and increase production Strengths Well Construction Revenue Strengths ($m) Strategic Advancements • Industry pioneer with +80 years of $1,153 Continuously transforming the constructi
Slide 11: Leading Well Flow Management Solutions for ~50 Years
Leading Well Flow Management Solutions for ~ 50 Years Full life-of-field capabilities; innovative and agile solutions Well Flow Management Revenue Strengths ($m) Strategic Advancements Fully integrated exploration and appraisal $892 Industry leading well testing technologies (E&A) and well clean-up
Slide 12: Technology Leader in Subsea Well Access
Technology Leader in Subsea Well Access Ensuring safe well access and lightweight production enhancement Subsea Well Access Revenue Strengths ($m) Strategic Advancements $273 $280 Providing reliable, efficient and cost Broad portfolio of subsea well access effective well access systems, throughout s
Slide 13: Global Well Intervention and Integrity Capabilities
Global Well Intervention and Integrity Capabilities Safer, smarter well intervention and integrity solutions Well Intervention & Integrity Revenue Strengths ($m) Strategic Advancements • Largest independent provider of $215 Continue to expand technology to provide mechanical wireline services, with
Slide 14: Technology and "Innovation With a Purpose"
Technology and “Innovation With a Purpose” iCAM® Light Well Intervention CoilHose Technology Octopoda™ Annulus Intervention Well Construction Subsea Well Access Well Intervention & Integrity Well Intervention & Integrity Solution: Artificial intelligence Solution: Lightweight wire- Solution: Nitroge
Slide 15: Future-facing Technologies
Future-facing Technologies Innovative solutions focused on automation, digitalization and Energy Transition Efficiency Digitalization Intelligent 4 Phase Galea™ Separator Autonomous well A compact system intervention solution / delivering reduced well reduced manpower / clean up and future artificia
Slide 16: Synergies: A Near-term Opportunity for Margin Expansion
Synergies: A Near-term Opportunity for Margin Expansion $80-$100M in merger synergies within 24-36 months $70M Cost Synergies $10-$30M Revenue Synergies 1 Cost synergies Revenue synergies ~$55 million of annual run-rate cost Complimentary capabilities, operating synergies within 12 months following
Slide 17: Increased Scale, Enhanced Profitability and Free Cash Flow
Increased Scale, Enhanced Profitability and Free Cash Flow Opportunity to drive free cash flow of +$150m by 2023E Revenue1 ($m) Recovery Adjusted EBITDA2 ($m) Total Liquidity3 ($m) $1,390 COVID-19 ~$375 $1,065 $238 Additional Cost Synergies at 36 $15 $177 Direct months $130 Draw Capacity $15 on RCF
Slide 18: Pro Forma Revenue, Margin and Support Costs
Pro Forma Revenue, Margin and Support Costs Expected cost synergies provide clear path to margin expansion Combined support costs2 Combined support costs as a % of revenue 1 Contribution Margin Adjusted EBITDA Combined support costs as a % of revenue, net of $70m of synergies ($m) ($m) $2,533 39% $2
Slide 19: Citizens of the World – Our ESG Commitment
Citizens of the World – Our ESG Commitment Sustainability: a core business principle and C-suite priority; focus is on increasing efficiency and lowering emissions E S G Our Planet Our Communities Our Structure • 50% reduction of carbon intensity • Engagement with local • No dual class shares, class
Slide 20: Focus on Sustainable Solutions for Expro and its Customers
Focus on Sustainable Solutions for Expro and its Customers Gas Compression Environmental Efficiencies Carbon Capture Operational Emissions Well Flow Management Well Flow Management Subsea Well Access and Well Flow Well Intervention & Integrity Management Customer reduced Green Carbon-efficient solut
Slide 21: Compelling Investment Thesis
Compelling Investment Thesis Expro: A Full-Cycle Energy Services Leader 1 Broad services offering provides scale, breadth and through-cycle resiliency 2 Diversified customer base with strong revenue visibility 3 Future-facing technologies position company for Energy Transition 4 Frank’s merger deliv
Slide 22: For further info please visit…
For further info please visit… Downloadable Financials: Investors.Expro.com @Expro @ExproGroup @ExproGroup @ExproGroup @ExproGroup Copyright 2021 Expro Group. All rights reserved. 22
Slide 23: Appendix
Appendix Downloadable Financials: Investors.Expro.com Copyright 2021 Expro Group. All rights reserved. 23
Slide 24: Pro Forma Historical Revenue and Adjusted EBITDA
Pro Forma Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m) Expro Frank's Expro Frank's $2,533 $770 $1,978 $1,153 $430 $521 $975 $1,390 $1,213 $1,261 $1,085 $1,065 $305 $580 $489 $522 $456 $390 $1,380 $168 $158 $1,003 $340 $78 $132 $10 $55 $107 $725 $739 $810 $28 $630 $675 $21
Slide 25: Pro Forma Historical Adjusted CFFO and Capex
Pro Forma Historical Adjusted CFFO and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s Expro Frank’s $645 $646 $368 $438 $397 $173 $219 $170 $145 $100 $141 $132 $277 $21 $118 $109 $208 $56 $224 $89 $37 $28 $55 $41 $31 $69 $148 $42 $56 $14 $89 $119 $22 $104 $104
Slide 26: Pro Forma 2020 Revenue by Geomarket and Product Line Group
Pro Forma 2020 Revenue by Geomarket and Product Line Group Revenue by Geographical Market ($m) Revenue by Product Line Group ($m) $1,065 $1,065 Europe & Sub Saharan Africa Well North & Latin Construction Well Flow America $298 Management $370 $390 $408 Asia Pacific Middle East $175 Subsea Well Well
Slide 27: Pro Forma Historical Revenue by Geomarket and Product Line Group
Pro Forma Historical Revenue by Geomarket and Product Line Group By Geographical Market ($m) By Product Line Group ($m) NLA ESSA MENA APAC Well Construction Well Flow Management $215 Subsea Well Access $364 $273 Well Intervention and Integrity $154 $234 $168 $152 $280 $892 $1,030 $169 $555 $170 $729
Slide 28: Non-GAAP Reconciliations – Pro Forma Combined
Non-GAAP Reconciliations – Pro Forma Combined Twelve Months Ended December 31 ($m) 2014 2015 2016 2017 2018 2019 2020 Adjusted EBITDA1 $770 $521 $158 $78 $132 $168 $107 Depreciation, amortization and impairment charges (274) (301) (677) (730) (241) (417) (547) Severance and other charges (3) (50) (4
Slide 29: Links to ESG Case Studies
Links to ESG Case Studies Gas Compression Environmental Efficiencies Carbon Capture Operational Emissions Well Flow Management Well Flow Management Subsea Well Access and Well Flow Well Intervention & Integrity Management Customer reduced Green Carbon-efficient solution The Northern Lights project C
Slide 30: Glossary of Terms
Glossary of Terms AcumenTM – Sonar meter solutions used in surveillance, well remediation, production optimization and adaptation for existing plant and facilities Cased Hole Applications – Downhole wireline tools and services deployed to perform a variety of services including the evaluation of wel
Slide 31: Glossary of Terms (continued)
Glossary of Terms (continued) Subsea Test Tree Assembly (SSTTA) – Systems integral to subsea landing string run inside a marine riser that allows well operations during drill stem testing, well completion or intervention from a semi-submersible rig or drillship. The subsea test tree provides a dual
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