Expro Group Holdings N.V. · NYSE:XPRO

Expro — 2023 RBC Energy Conference

40 slides from Expro's conference presentation, June 2023

  1. Slide 1: 2023 RBC Energy Conference

    2023 RBC Energy Conference June 6-7, 2023 | New York, New York NYSE: XPRO

  2. 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

  3. Slide 3: Delivering technology, expertise and service

    Delivering Unlocking technology, expertise energy answers and service for tomorrow for the wells of today Copyright 2023 Expro. All rights reserved. 13

  4. Slide 4: Get to Know XPRO: Who We Are, What We Do

    Get to Know XPRO: Who We Are, What We Do OUR REVENUE COUNTRIES EMPLOYEES INTERNATIONAL OFFSHORE U.S. LAND Recent Market Capitalization1 Asia Pacific STRONG CASH FLOW OUTLOOK DEBT FREE BALANCE SHEET 15% Recent Enterprise Value2 with significant available liquidity Middle East TTM 20233 North & Latin

  5. Slide 5: The Combination of Expro and Franks Provides Increased Scale, Business Momentum

    The Combination of Expro and Franks in Q4 2021 Provides Increased Scale, Business Momentum… Historical Revenue ($m) Historical Adjusted EBITDA ($m) Excluding LWI-related Expro Adjusted EBITDA and Adjusted EBITDA costs, Adjusted EBITDA Well Management Well Construction Total Revenue up 36% Margin exc

  6. Slide 6: … and Improved Operating Leverage

    … and Improved Operating Leverage Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Product Line and central costs Geography-based support costs $103 $102 Aggregate support $101 $101 $322 costs since Q4 2020 $6 $6 $94 down from 31% to $6 $8

  7. Slide 7: Long Term Value Creation Strategy

    Long Term Value Creation Strategy Maximize Expected Increase Margins Maintain Focus on Multi-Year Upcycle and Free Cash Flow Through-cycle Resiliency Shareholder Returns Well positioned to capture Improving business mix Broad portfolio of value-added Achieve sustainable significant upside services a

  8. Slide 8: Where We Operate

    Maximize Multi-Year Upcycle Where We Operate INTERNATIONAL REVENUE2 OFFSHORE REVENUE DRILLING & COMPLETIONS REVENUE ~20% 30% U.S. ~30% Onshore Production Optimization * International Offshore Drilling & Completions ¹ After a strong recoveryCategory 1 in the US onshore market, we are Significant unde

  9. Slide 9: +$75 Oil Provides Strong Support for Offshore Recovery

    Maximize Multi-Year Upcycle +$75 Oil Provides Strong Support for Offshore Recovery Revenue Brent Price $3,000 $100 $110 $101 $92 $54 $2,500 $83 $90 $72 $71 $75 $2,000 $64 $70 $70 $44 $55 $42 $1,500 $50 $1,000 $30 $500 $10 $2,533 $1,978 $1,213 $1,085 $1,261 $1,390 $1,065 $1,143 $1,279 $- $(10) 2014 2

  10. Slide 10: Positive Fundamental Backdrop Supported by Announced Customer Spending Plans

    Maximize Multi-Year Upcycle Positive Fundamental Backdrop is Supported by Announced Customer Spending Plans Capital Committed for Offshore Greenfield by Year ($m)1 Offshore Exploration CAPEX ($m)2 21% $68 $147 Forward Estimates $70 $138 $141 $4 $60 Deepwater Shelf 54% $117 $52 $56 $50 $25 $97 $84 $8

  11. Slide 11: Higher Fall-Through on Incremental Revenue Pricing Tailwinds

    Increase Margins and Free Cash Flow Higher Fall-Through on Pricing Tailwinds Incremental Revenue  Limited upstream investment for +5 years;  FID estimates imply an approximate production capacity additions required to ~60% increase in offshore investment in 2023-2026 versus 2016-2019 support deman

  12. Slide 12: Recently-deployed Technologies Designed to Increase Growth and Expand Margins

    Increase Margins and Free Cash Flow Recently-deployed Technologies Designed to Increase Growth and Expand Margins Technologies for the Most Complex Oil and Gas Challenges WELL CONSTRUCTION WELL MANAGEMENT Cementing Technologies Mega Flow Separator Well Surveillance Technology Annulus Integrity Solut

  13. Slide 13: Illustrative Recovery: Strong Revenue Growth and Free Cash Flow Generation

    Increase Margins and Free Cash Flow Illustrative Recovery: Strong Revenue Growth, Increasing Adjusted EBITDA Margin, and a Step-change in Free Cash Flow Generation Revenue ($m)2 Adjusted EBITDA ($m)2 $2,000 ~2.5x $400 ~4.5x $1,800 $325 “Old” “New” $1,550 $1,600 Expro Expro $1,450 $300 $1,400 $1,200

  14. Slide 14: Expertise, Technology and Broad Portfolio of Value-Added Services

    Maintain Through-cycle Resiliency Expertise, Technology and Broad Portfolio of Value-Added Services Provide Through-Cycle Resiliency EXPLORATION DRILLING COMPLETION PRODUCTION ABANDONMENT SUSTAINABLE & APPRAISAL ENERGY SOLUTIONS Well Lifecycle WELL CONSTRUCTION WELL MANAGEMENT Well Flow Management S

  15. Slide 15: Sustainable Energy Solutions for Expro and its Customers

    Maintain Through-cycle Resiliency Sustainable Energy Solutions for Expro and its Customers Emissions Management Environmental Efficiencies Annular Well Integrity SUSTAINABLE ENERGY SOLUTIONS WELL FLOW MANAGEMENT WELL INTERVENTION & INTEGRITY Customer reduced Green House Unique solution intervening t

  16. Slide 16: Disciplined Capital Allocation Debt Free

    Maintain Through-cycle Resiliency / Focus on Shareholder Returns Strategic and Financial Flexibilty Capital Allocation Framework FUND ORGANIC GROWTH Disciplined Maintenance capex/ Capital Allocation OUTSTANDING Growth capex & Debt Free OF REVENUE Balance Sheet VALUE-ADDED ACQUISITIONS to AVAILABLE L

  17. Slide 17: Q2 2023 and 2023 Guidance

    Q2 2023 2023 Management expects Q2 revenue to Based on a positive activity outlook, we are reflect ~20% year-on-year (~10% maintaining our 2023 guidance, with sequential) growth, with Adjusted revenues between $1,450m and $1,550m, EBITDA margin in the 16-18% range Adjusted EBITDA between $275m and $

  18. Slide 18: Appendix: Get in touch

    Appendix: To learn 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

  19. Slide 19: 2022 Revenue by Product Line and Region

    2022 Revenue by Product Line and Region Revenue by Product Line ($m) Revenue by Region ($m) Well Intervention Asia Pacific & Integrity 15% $193 Subsea Well Flow Well Management Access North & Latin $453 Revenue by Product Line $134 Middle East North Africa Revenue by America Geography 16% 39% $1,279

  20. Slide 20: 2022 Revenue by Type of Activity

    2022 Revenue by Type of Activity Revenue by Activity ($m) Drilling & Completions Revenue ($m) Production Optimization Revenue ($m) Tubular Product Sales Subsea Well Access $49 $14 Production Optimization Well Flow $377 Management Well Well Flow Well Revenue $283 Revenue Construction Management Reven

  21. Slide 21: 2022 Revenue by Region (by Product Line)

    2022 Revenue by Region (by Product Line) North & Latin America ($m) Europe & Sub-Saharan Africa ($m) Well Construction Well Flow Management Well Construction Well Flow Management Subsea Well Access Well Intervention & Integrity Subsea Well Access Well Intervention & Integrity $101 $115 $9 $140 $500

  22. Slide 22: 2022 Revenue by Region (by Type of Activity)

    2022 Revenue by Region (by Type of Activity) North & Latin America ($m) Europe & Sub-Saharan Africa ($m)  Drilling & Completions  Tubular Sales  Production Optimization  Drilling & Completions  Production Optimization $84 $100 $49 $500 $389 $368 $289 Middle East & North Africa ($m) Asia Pacific

  23. Slide 23: Historical Revenue & Adjusted EBITDA

    Historical Revenue & Adjusted EBITDA Revenue ($m) Adjusted EBITDA 1,2 ($m) $234 $2,533 $1,978 $1,213 $1,085 $1,261 $1,390 $1,065 $1,143 $1,279 $793 $532 $172 $79 $145 $175 $109 $158 $206 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adjusted EBITDA Margin3

  24. Slide 24: Historical Revenue & Adjusted EBITDA (Quarterly)

    Historical Revenue & Adjusted EBITDA (Quarterly) Historical Revenue ($m) Historical Adjusted EBITDA ($m) Excluding LWI-related Well Management Well Construction Total Expro Adjusted EBITDA and Adjusted EBITDA costs, Adjusted EBITDA Revenue up 36% Margin excluding LWI-related mobilization, up ~2x sin

  25. Slide 25: Historical Revenue by Region and Product Line

    Historical Revenue by Region and Product Line By Region ($m) By Product Line ($m) Well Construction Well Flow Management NLA ESSA MENA APAC Well Intervention & Integrity Subsea Well Access $2,533 $2,533 $273 $364 $1,978 $197 $154 $1,978 $234 $280 $152 $150 $910 $1,030 $1,390 $1,390 $1,279 $1,261 $1,

  26. Slide 26: Historical Revenue by Region and Product Line (Quarterly)

    Historical Revenue by Region and Product Line (Quarterly) By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Total Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $374 $374 $348 $342 $351 $348 $342 $351 $334 $339 $42 $339 $56 $330 $330 $334

  27. Slide 27: Historical Revenue & Contribution by Area of Capability (Quarterly)

    Historical Revenue & Contribution by Area of Capability (Quarterly) Revenue ($m) Well Construction ($m) $70 45% 44% 42% 43% 44% 45% 43% 50% 41% 42% 42% 41% 42% 41% 42% $60 38% 40% 37% $374 40% $351 $50 $348 $342 $334 $339 30% $326 $330 $40 $313 $314 $30 20% $139 $296 $284 $280 $20 $138 10% $156 $139

  28. Slide 28: Historical Contribution by Product Line (Quarterly)

    Historical Contribution by Product Line (Quarterly) Well Construction ($m) Well Flow Management ($m) $70 42% 45% 50% $70 50% 44% 42% 43% 44% 45% 43% 43% 41% 42% 41% 42% 41% 42% 40% 41% $60 38% 40% 37% $60 39% 38% 38% 39% 36% 38% 36% 38% 38% 37% 40% 36% 34% 35% 40% $50 33% $50 30% $40 30% $40 $30 $30

  29. Slide 29: Historical Segment EBITDA by Region

    Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $35 35% 30% 30% 26% $40 27% 30% 25% $30 26% 30% $35 23% 23% 22% 21% 21% 21% 25% $25 21% 25% $30 19% 19% 18% 18% 18% $25 16% 15% 15% 15% 20% $20 17% 16% 18% 20% 15% 14% 15% 15% 14% $20 12% 13% 11%

  30. Slide 30: Historical Support Costs

    Historical Support Costs Historical Support Costs ($m) Geography-based support costs Product Line and other central costs Research, engineering and development $640 $24 $573 $128 $28 $116 $416 $406 $16 $363 $360 $25 $15 $20 $322 $116 $297 $100 $17 $278 $96 $86 $10 $89 $8 $489 $87 $79 $430 $284 $252

  31. Slide 31: Historical Support Costs (Quarterly)

    Historical Support Costs (Quarterly) Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Product Line and central costs Geography-based support costs $103 $102 Aggregate support $101 $101 $322 costs since Q4 2020 $6 $6 $94 down from 31% to $6

  32. Slide 32: Historical Adjusted Cash Flow from Operations & Capex

    Historical Adjusted Cash Flow from Operations & Capex Adjusted Cash Flow from Operations ($m) Core Capital Expenditures ($m)² $645 $646 $397 $219 $138 $170 $109 $103 $145 $89 $118 $115 $69 $74 $61 $69 $62 $41 2014 2015 2016 2017 2018 2019 2020 2021 2022 2014 2015 2016 2017 2018 2019 2020 2021 2022 C

  33. Slide 33: Historical Adjusted CFFO & Capex (Quarterly)

    Historical Adjusted CFFO & Capex (Quarterly) Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) $99 $40 $40 $37 $37 $73 $33 $33 $66 $31 $31 $28 $29 $52 $44 $41 $22 $20 $21 $21 $19 $19 $26 $27 $22 $17 $10 $11 $8 $2 $2 -$15 -$7 -$1 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q

  34. Slide 34: Non-GAAP Reconciliations (Annual)

    Non-GAAP Reconciliations (Annual) Twelve Months Ended December 31 ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 Adjusted EBITDA 1 $ 793 $ 532 $ 172 $ 79 $ 145 $ 175 $ 109 $ 158 $ 206 Depreciation, amortization and impairment expenses (274) (301) (677) (744) (241) (417) (547) (168) (14

  35. Slide 35: Non-GAAP Reconciliations (Annual)

    Non-GAAP Reconciliations (Annual) Twelve Months Ended December 31 ($ in millions) 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total revenue $ 2,533 $ 1,978 $ 1,213 $ 1,085 $ 1,261 $ 1,390 $ 1,065 $ 1,143 $ 1,279 Cost of revenue, excluding depreciation and amortization (1,648) (1,384) (973) (960) (1

  36. Slide 36: Non-GAAP Reconciliations (Quarterly)

    Non-GAAP Reconciliations (Quarterly) Three Months Ended TTM 2023 ($ 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 30-Sep-22 31-Dec-22 31-Mar-23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $

  37. Slide 37: Non-GAAP Reconciliations (Quarterly)

    Non-GAAP Reconciliations (Quarterly) ($ in millions) 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 Q3 22 Q4 22 Q1 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339 $ 1,33

  38. Slide 38: Non-GAAP Reconciliations (Quarterly)

    Non-GAAP Reconciliations (Quarterly) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended 31-Dec-21 31-Mar-22 30-Jun-22 30-Sept-22 31-Dec-22 31-Mar-23 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $

  39. Slide 39: Notes

    Notes Copyright 2023 Expro. All rights reserved.

  40. Slide 40: GET TO KNOW

    MON” OL 12 Oud«

Expro Group Holdings — 2023 RBC Energy Conference on 6ix