S.d. Standard Etc Plc · OSL:SDSD
S.d. Standard Etc — Standard Supply AS — Investor Presentation (June 2022)
36 slides from S.d. Standard Etc's investor presentation, Jun 9, 2022
Slide 1: Standard Supply AS Investor presentation
Standard Supply AS Investor presentation THE DISTRIBUTION OF PRESENTATION AND THE OFFERING, SUBSCRIPTION, PURCHASE OR SALE OF ANY SECURITIES MENTIONED HEREIN MAY IN CERTAIN JURISDICTIONS BE RESTRICTED BY LAW, INCLUDING (BUT NOT LIMITED TO) CANADA, AUSTRALIA, HONG KONG OR JAPAN. THIS DOCUMENT MAY NOT
Slide 2: Important information and disclaimer (I/II)
Important information and disclaimer (I/II) • This Presentation (together with its appendices) has been prepared by Standard Supply AS (under name change from NFH 220386 AS) (the "Company", and together with its subsidiaries, the "Group") solely for information purposes in connection with a potentia
Slide 3: Important information and disclaimer (II/II)
Important information and disclaimer (II/II) • ANY INVESTMENT IN THE COMPANY INVOLVES RISK, AND SEVERAL FACTORS COULD CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT MAY BE EXPRESSED OR IMPLIED
Slide 4: Summary of Risk Factors
Summary of Risk Factors • • Investing in the Shares involves inherent risks. Investors should consider all of the information set forth in this Investor Presentation, and in particular, the risk factors summarized out below. An investment in the Shares is suitable only for investors who understand t
Slide 5: Transaction overview
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 6: Transaction summary
Transaction summary Issuer Standard Supply AS (under name change from NFH 220386 AS) (“Standard Supply” or the “Company”) - a private limited company incorporated under the laws of Norway with registration no. 929 048 717. ISIN NO 001 2547308 Current share capital 100,300,000 shares outstanding, eac
Slide 7: Transaction overview
Transaction overview Transaction description Simplified transaction overview • Standard Supply AS (“Standard Supply” or the “Company”), a New investors S.D. Standard ETC subsidiary of S.D. Standard ETC (“SDSD”), seeks to list its ~25% ~75% shares on Euronext Growth Oslo NOK 150m equity raise • Stand
Slide 8: Valuation and capital structure
Valuation and capital structure Net asset value overview • Standard Supply owns a fleet of 2 large-size PSVs in addition USDm Gross value Ownership Net value to a 28.1% ownership stake in Northern Supply, owning a fleet Vessel values1) of 5 mid-size PSVs Standard Viking 16.0 100.0% 16.0 • The fleet
Slide 9: Investment Highlights
Investment Highlights Strong signs of unpresedented Low overhead costs and outsourced market upturn after a eight-year vessel managment to Fletcher Group down cycle Sponsor with a proven track record in Capable fleet of 2+5 platform supply business development, execution and Standard Supply AS vesse
Slide 10: Company and Strategy
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 11: Company overview
Company overview Standard Supply AS • Standard Supply AS is a Norwegian limited liability company currently 100% owned by Oslo Stock Exchange listed S.D. Standard ETC (“SDSD”) • Standard Supply AS is a newly established company which will own 100% of Wanax AS. Wanax AS was founded in 2016 as a vehic
Slide 12: Company strategy
Company strategy Focus on maximizing cash flow to investors • Lowest possible entry with significant upside potential • Fully capture ongoing unprecedented dayrate inflation in the OSV market • Debt free with clear dividend policy of returning excess cash to shareholders • Retain a low-cost platform
Slide 13: Standard ETC – Will remain the largest shareholder in Standard Supply
Standard ETC – Will remain the largest shareholder in Standard Supply Company overview • Founded in 2010, listed on Oslo Stock Exchange under ticker SDSD • Currently holds 100% of the shares in Standard Supply • Chairman: Martin Nes (CEO of Ferncliff) • Investment team: Espen L. Fjermestad and Espen
Slide 14: Standard ETC – Sector focus and portfolio overview
Standard ETC – Sector focus and portfolio overview Highly experienced and active owner with core focus on energy and transportation • Ferncliff is the largest shareholder in Standard ETC, holding close to 30% of the shares in the company • Strong investment team led by Espen L. Fjermestad (ex. Fearn
Slide 15: PSV fleet contract backlog
PSV fleet contract backlog Fleet of 7 Norwegian built PSVs, all in operation • High degree of operational leverage through vessels open to take advantage of tightening market 2022 2023 2024 Vessel Built Country Client Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Large-size vessels (100% owned) Standard Vikin
Slide 16: Fletcher Group as technical and commercial manager
Fletcher Group as technical and commercial manager Standard Supply has used Fletcher Group as technical and commercial manager since 2016 • Fletcher provides commercial, technical and corporate services incl. vessel maintenance, crewing and shipyard supervision • Fletcher has successfully- and econo
Slide 17: Competitive landscape
Competitive landscape Standard Supply will be the only debt-free OSV company listed in Norway • Competitive landscape still represented by highly levered companies with questionable future debt serviceability • Debt-free balance sheet of Standard Supply enables favorable dividend policy with focus o
Slide 18: Fleet overview
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 19: PSV fleet overview
PSV fleet overview 100% owned [28.1]% owned MV Standard Supplier MV Standard Viking FS Kristiansand FS Crathes FS Balmoral FS Abergeldie FS Braemar Design: ST-216L CD Design: ST-216L CD Design: VS 470 MK II Design: UT 755 LN Design: UT 755 LN Design: UT 755 LN Design: UT 755 LN Built: 2007 Built: 20
Slide 20: PSV fleet utilization overview
PSV fleet utilization overview Consistent utilization performance • Utilization negatively affected by Covid-19 outbreak in 2020 • Currently 100% utilization across fully- and partially owned PSVs Standard Supply vesssels (100% owned) Utilization S. Viking S. Supplier Weighted avg. Combined fleet ut
Slide 21: Valuation and Financials
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 22: Illustrative fleet economics
Illustrative fleet economics Key assumptions Standard Supply illustrative fleet economics (USDm) • Current North Sea term dayrates Large-size PSV: USD 21k/day Mid-size PSV: USD 16k/day 104 • Utilization assumptions 90 86 Fleet utilization of 95% 77 75 • Opex and SG&A assumptions 69 64 60 Opex for la
Slide 23: Trading levels for selected OSV companies
Trading levels for selected OSV companies Comments Selected OSV EV/2021 EBITDA multiples • Looking at trading levels for selected Norwegian OSV 15,6x companies, the 2021 EV/EBITDA multiples range from 9.1x to 15.6x 13,2x • The average 2021 EV/EBITDA multiple for the selected OSV 11,6x companies is 1
Slide 24: Trading levels for selected offshore drilling companies
Trading levels for selected offshore drilling companies Comments Top 5 US listed drillers EV/EBITDA multiples • Looking at trading levels for selected US listed offshore drilling companies, the 2023E EV/EBITDA multiples range from 6.6x to 15,3x 15.3x 13,4x • The average 2023E EV/EBITDA multiple for
Slide 25: Market sentiment
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 26: Global oil market: Strong demand growth, structural undersupply and low spare capacity
Global oil market: Strong demand growth, structural undersupply and low spare capacity Strong demand recovery post Covid-19 Continued demand growth in the foreseeable future Global demand (mbl/d) Global oil demand, historical and IEA forecast (mbl/d)1) 110 105 101100 102101 10099 104,1 100 97 97 105
Slide 27: Offshore rigs and subsea field development recovering strongly
Offshore rigs and subsea field development recovering strongly Offshore rigs working, globally Subsea EPC backlog (SUBC + TEC subsea + SPM E&C Offshore) Subsea EPC backlog (SUBC + TEC Subsea + SPM E&C Offshore) 700 40 600 35 30 500 25 400 20 USDbn 300 15 200 10 100 5 0 0 2010 2011 2012 2013 2014 201
Slide 28: Large PSV segment already fully recovered post Covid-19 and utilization at ~95%
Large PSV segment already fully recovered post Covid-19 and utilization at ~95% PSV/Supply 4,000 DWT+ Supply, Demand, Utilization - Global Commentary 600 100 • Active fleet utilization for large, modern PSVs globally is 550 95 hovering around 95% 500 90 • Limited remaining relevant capacity in the g
Slide 29: North Sea PSV fleet utilization at high level and laid up fleet is limited
North Sea PSV fleet utilization at high level and laid up fleet is limited and less relevant PSV North Sea Fleet PSVs in layup – NW Europe 300 100% 120 Limited remaining capacity. Assets have been 100 retired/scrapped, sold out of the 250 sector or already reactivated 90% 200 80 80% 150 60 70% 100 4
Slide 30: North Sea PSV term rates have tightened significantly YTD
North Sea PSV term rates have tightened significantly YTD PSV North Sea Term Rates (£,000/day) Large-size PSV (900m2) spot rates (£,000/day) 40 40 900+ m2 35 750-899 m2 35 500-749 m2 30 30 25 25 20 20 15 15 10 10 5 5 0 0 May-09 May-10 May-11 May-12 May-13 May-14 May-15 May-16 May-17 May-18 May-19 Ma
Slide 31: Large-size PSVs – historical spot rates for large-size PSVs
Large-size PSVs – historical spot rates for large-size PSVs Large-size PSV spot rates (900m2) 30 25 20 15 Last 5yr avg. USD 11.2k/d Current market rate USD 18.4k/d 10 5 0 Jan-13 Sep-13 May-14 Jan-15 Sep-15 May-16 Jan-17 Sep-17 May-18 Jan-19 Sep-19 May-20 Jan-21 Sep-21 May-22 Large PSV dayrate (USD/d
Slide 32: Financials
Transaction overview Company and Strategy Fleet overview Valuation and Financials Market sentiment Financials
Slide 33: Income statement – Wanax Group
Income statement – Wanax Group Income statement USD 20211) 2020 OPERATING INCOME Time charter revenue 11,854,345 6,393,814 Net gain sale of fixed assets 397,060 Other Income 293 -1,412 Total operating income 12,251,698 6,392,402 OPERATING COSTS Ship operating expenses 10,395,550 10,423,265 Administr
Slide 34: Balance sheet – Wanax Group
Balance sheet – Wanax Group Total assets Total equity and liabilities USD 20211) 2020 USD 20211) 2020 NON-CURRENT ASSETS EQUITY Fixed assets Paid in capital Associated assets 6,013,304 7,074,582 Share capital 24,749 24,749 Vessels 18,517,712 38,209,436 Premium of shares 65,541,325 71,862,325 Total f
Slide 35: Cash flow – Wanax Group
Cash flow – Wanax Group Cash flow USD 20211) 2020 Cash-flow from operational activities Profit before tax -1,859,940 -9,889,856 Profitshare from associates 296,557 2,001,222 Depreciations 2,817,123 2,987,000 Income tax paid -29,116 -35,187 Loss/(-gain) on sale fixed assets -397,060 Change in invento
Slide 36: Standard Supply AS
Standard Supply AS
Standard Supply AS — Investor Presentation (June 2022) on 6ix