Expro Group Holdings N.v. · NYSE:XPRO
Expro — DNB Energy & Shipping Conference 2022
35 slides from Expro's conference presentation, Mar 8, 2022
Slide 1: DNB Energy & Shipping Conference
DNB Energy & Shipping Conference NYSE: XPRO March 8, 2022
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: Compelling Investment Thesis
Compelling Investment Thesis 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 delivers sig
Slide 4: Expro at a Glance
Expro at a Glance Who We Are Company Snapshot 1 Full-cycle energy services leader with a diverse set of global capabilities in: • Well Construction Operations in Resilient • Well Flow Management over 60 countries; business model • Subsea Well Access best-in-class safety to drive through- • Well Inte
Slide 5: 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 2021 Revenue by Geography: 2021 Revenue by Product Line Group: 2021
Slide 6: …with Cyclical Recovery Upside
…with Cyclical Recovery Upside Brent Crude Pro Forma Price Revenue ($m) Revenue Brent Price $105 $3,000 $99 $95 $85 $2,500 $72 $65 $64 $2,000 $54 $55 $45 $45 $1,500 $43 COVID-19 $2,533 $25 $1,978 $1,000 $1,261 $1,390 $1,213 $1,085 $1,143 $5 $1,065 $500 ($15) $0 2014 2014 2015 2015 2016 2016 2017 201
Slide 7: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Well Construction Well Management Well Construction Well Flow Management Subsea Well Access Well Intervention & Integrity Innovative, high value, low risk well Proficiently gathering valuable well Ensuring safe, efficient and cost Deployment, insight a
Slide 8: Specialty Services within Well Construction
Specialty Services within Well Construction Transforming the construction and completion of wells to drive efficiency and increase production Well Construction Revenue Strengths Strengths ($m) Strategic Advancements • Industry pioneer with +80 years of experience $1,153 Continuously transforming the
Slide 9: Leading Well Flow Management Solutions for ~50 Years
Leading Well Flow Management Solutions for ~ 50 Years Full life-of-field capabilities; innovative and agile solutions Well Flow Management Revenue Strengths ($m) Strategic Advancements Fully integrated exploration and appraisal $892 Industry leading well testing technologies (E&A) and well clean-up
Slide 10: Technology Leader in Subsea Well Access
Technology Leader in Subsea Well Access Ensuring safe well access and lightweight production enhancement Subsea Well Access Revenue Strengths ($m) Strategic Advancements $273 $280 Providing reliable, efficient and cost Broad portfolio of subsea well access effective subsea well access systems, solut
Slide 11: Global Well Intervention and Integrity Capabilities
Global Well Intervention and Integrity Capabilities Safer, smarter well intervention and integrity solutions Well Intervention & Integrity Revenue Strengths ($m) Strategic Advancements • Largest independent provider of $215 Continue to expand technology to provide mechanical wireline services, with
Slide 12: Synergies: A Near-term Opportunity for Margin Expansion
Synergies: A Near-term Opportunity for Margin Expansion Integration plan on-track with $80-$100M in merger synergies expected within 24-36 months; +50% of initial $55 million of synergies opportunity identified and actioned in Q4 2021 $70M Cost Synergies $10-$30M Revenue Synergies 1 Cost synergies R
Slide 13: Making Significant Progress to Realize Expected Cost Synergies
Making Significant Progress to Realize Expected Cost Synergies Identified and actioned on +50% of expected $55 million in first 12-month cost savings Total Expected Cost Synergies ($m) Well on track $70 Expected in first to achieve 24-36 months total expected cost synergies in order $55 Expected sav
Slide 14: Sustainable Solutions for Expro and its Customers
Sustainable Solutions for Expro and its Customers Gas Environmental Operational Carbon Compression Efficiencies Emissions Capture Well Flow Well Flow Well Intervention Subsea Well Access Management Management & Integrity and Well Flow Management Customer reduced Carbon-efficient solution CoilHose op
Slide 15: Company Outlook
Company Outlook Q1 2022 2022 • We expect that revenue in the first quarter • Revenue momentum will be driven by an of 2022 will be relatively flat compared to increase in shorter-cycle, faster-return the fourth quarter of 2021 production optimization projects • We expect that Adjusted EBITDA margin
Slide 16: Appendix
Appendix: For further info, please visit: Investors.Expro.com >> Click here for Downloadable Financials >> @Expro @ExproGroup @ExproGroup @ExproGroup @ExproGroup Expro.com Copyright 2022 Expro. All rights reserved. 16
Slide 17: Revenue, Contribution Margin and Support Costs
Revenue, Contribution Margin and Support Costs Expected cost synergies provide clear path to margin expansion Combined support costs2 Combined support costs as a % of revenue Revenue Contribution Margin1 Adjusted EBITDA Margin Combined support costs as a % of revenue, net of $70m of synergies ($m) (
Slide 18: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA1 ($m) Expro Frank’s XPRO Expro Frank’s XPRO $793 $2,533 Legacy Legacy $1,978 $1,153 $447 $532 $975 $1,390 $1,213 $1,261 $1,143 $311 $1,085 $1,065 $580 $489 $522 $456 $390 $1,380 $172 $175 $158 $346 $145 $1,003 $21 $79 $57 $109 $810
Slide 19: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA1 ($m) Well Management Well Construction Expro Frank's XPRO $374 Legacy $348 $51 $342 $326 $330 $51 $313 $45 $45 $45 $139 $296 $14 $284 $39 $156 $139 $123 $251 $251 $250 $16 $16 $35 $14 $144 $115 $33 $233 $112 $12 $108 $8 $86 $12 $24
Slide 20: Historical Adjusted CFFO and Capex
Historical Adjusted CFFO and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s XPRO Expro Frank’s XPRO $645 $646 Legacy $397 Legacy $368 $173 $438 $219 $100 $141 $132 $170 $109 $145 $37 $28 $21 $118 $224 $89 $88 $277 $69 $56 $62 $56 $208 $69 $41 $31 $42 $148 $119
Slide 21: Historical Adjusted Cash flow from Operations and Capex
Historical Adjusted Cash flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank's XPRO XPRO Expro Frank's Legacy Legacy 80 $73 $40 $40 $66 $37 $37 60 $27 $33 $33 $18 $52 $41 $10 $10 $31 $44 $10 $10 $28 40 $8 $9 $5 $32 $26 $22 $28 $22 $17 $20 $21
Slide 22: 2021 Revenue by Region and Product Line
2021 Revenue by Region and Product Line Revenue by Region ($m) Revenue by Product Line ($m) $1,143 $1,143 Europe & Sub Saharan Africa Well North & Latin Construction Well Flow America $373 Management $393 $430 $423 Asia Pacific Middle East Subsea Well Well $184 Intervention North Africa Access and I
Slide 23: Revenue Balanced by Region and Area of Capability
Revenue Balanced by Region and Area of Capability 4Q 2021(1) Revenue by Geographical Market ($m) 4Q 2021(1) Revenue by Area of Capability ($m) $296 $296 Well Management Well Construction Asia Pacific North & (APAC) Latin America $100 (NLA) $51 $112 $184 $49 Middle East Europe & Sub North Africa $94
Slide 24: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North and Latin America ($m) Europe and Sub Saharan Africa ($m) $50 50% $50 50% $40 40% $40 40% $30 30% $30 26% 30% 16% 23% 23% 22% 21% 21% 21% 15% 15% 19% 19% 15% 18% 17% 18% $20 15% 20% $20 15% 15% 20% 11% 14% 13% 12% 8% $10 10% $10 10% $21 $24 $20 $20 $15 $6 $9
Slide 25: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Management ($m) $100 42% 38% 41% 45% 40% 40% 40% Well Construction Well Management $90 38% 38% 36% 37% 40% 35% 35% $80 35% $70 30% $326 $348 $342 $374 $330 $251 $233 $250 $251 $284 $313 $296 $60 25% $50 $89 20% $40 $73 $80
Slide 26: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Region ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Subsea Well Access Well Flow Management Well Intervention and Integrity $2,533 $2,533 $364 $215 $154 $1,978 $1,978 $234 $892 $168 $152 $1,030 $1,390 $1,261 $555 $1,390 $1,213 $169 $
Slide 27: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Region ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention & Integrity $374 $374 $348 $348 $342 $342 $326 $56 $330 $326 $47 $330 $38 $44 $313 $41 $313 $42 $31 $42 $296 $39 $43 $43 $2
Slide 28: Annual Non-GAAP Reconciliations - Combined
Annual Non-GAAP Reconciliations - Combined Twelve Months Ended December 31 ($m) 2014 2015 2016 2017 2018 2019 2020 2021 Adjusted EBITDA 1 $ 793 $ 532 $ 172 $ 79 $ 145 $ 175 $ 109 $ 158 Depreciation, amortization and impairment expenses (274) (301) (677) (744) (241) (417) (547) (168) Severance and ot
Slide 29: Annual Non-GAAP Reconciliations (continued)
Annual Non-GAAP Reconciliations (continued) ($ in millions) Twelve Months Ended December 31 2014 2015 2016 2017 2018 2019 2020 2021 Total revenue $ 2,533 $ 1,978 $ 1,213 $ 1,085 $ 1,261 $ 1,390 $ 1,065 $ 1,143 Cost of revenue, excluding depreciation and amortization (1,648) (1,384) (973) (960) (1,07
Slide 30: Annual Non-GAAP Reconciliations (continued)
Annual Non-GAAP Reconciliations (continued) ($ in millions) Twelve Months Ended December 31 2014 2015 2016 2017 2018 2019 2020 2021 Cost of revenue, excluding depreciation and amortization $1,648 $1,384 $973 $960 $1,077 $1,179 $934 $974 Stock based compensation expense & others (6) (6) 2 (10) (5) (4
Slide 31: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended, TTM 2021 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 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 158 Depreciation, amortization
Slide 32: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM 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-Dec-21 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 1,143
Slide 33: Non GAAP Reconciliations (continued)
Non GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM 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-Dec-21 Cost of revenue, excluding depreciation and amortization $ 287 $ 290 $ 285 $ 317 $ 280 $ 221 $
Slide 34: Glossary of Terms
Glossary of Terms AcumenTM – Sonar meter solutions used in surveillance, well remediation, production optimization and adaptation for existing plant and facilities Blowout Preventer (BOP) – is a specialized valve or similar mechanical device, used to seal, control and monitor oil and gas wells to pr
Slide 35: Glossary of Terms (continued)
Glossary of Terms (continued) Pipeline and Flarestack – Systems for separation, fluids and solid handling complemented by specially designed flare systems that safely and quickly vaporize and burn off highly volatile liquids in operations ranging from routine pipeline maintenance blow-downs to emerg
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