Akastor Asa · OSL:AKAST
Akastor Asa — Q1 2023 Earnings Presentation
35 slides from Akastor Asa's earnings presentation, Apr 27, 2023
Slide 1: Quarterly presentation – Akastor ASA 1Q 2023
1Q 2023 Quarterly presentation – Akastor ASA April 27, 2023 Akastor © 2023
Slide 2: 1Q 2023 Highlights
1Q 2023 Highlights NET CAPITAL EMPLOYED 1) NOK million, 31 March 2023 Book value per share ▪ Agreement with ABL Group re. sale of all shares in AGR against a combination of shares in ABL and cash 10.9 2.1 2.5 2.1 0.8 -1.3 17.1 -1.7 15.3 ▪ Akastor holds around 5% of ABL after closing of transaction i
Slide 3: Akastor is now a shareholder in ABL Group following sale of AGR
Akastor is now a shareholder in ABL Group following sale of AGR Introduction Overview of AGR transaction proceeds and assets retained by Akastor • AGR sold to Norway-listed ABL Group against combination of ABL shares and Offers independent energy and marine consultancy to 6,055,556 shares cash, with
Slide 4: Portfolio overview post closing of ABL transaction
Portfolio overview post closing of ABL transaction Industrial investments Financial investments Global full-service offshore and onshore Global engineering staffing provider within drilling equipment and service provider multiple sectors 50% ~15%2) Global provider of subsea well construction and int
Slide 5: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 5
Slide 6: Summary and outlook
Summary and outlook ▪ Continue to experience growth in order intake for the fourth consecutive quarter. Book-to-Bill >1 in the quarter. ▪ Secured strategic orders related to SeaONYXTM controls enhancements, equipment overhauls and digital technology in the quarter. ▪ EBITDA up nearly 50% year-on-yea
Slide 7: HMH highlights | 1Q 2023
HMH highlights | 1Q 2023 Proforma financials, IFRS ▪ Revenues up 33% year-on-year driven by GMGS REVENUE1) EBITDA2) EBITDA MARGIN project, service output and rig upgrades. Down 5% USD millions USD millions % quarter-on-quarter driven from higher 4Q22 output 196 31 17.8 as result of build up from ERP
Slide 8: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 30% year-on-year driven by improved order 140 intake in 2022 and down 12% quarter-on-quarter due to increase 95 102 106 123 build up in previous period due to ERP implementation and performance b
Slide 9: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 169 million as per end of period NET INTEREST-BEARING DEBT USD millions ▪ USD 8 million instalment payment on Term Loan in 1Q 2023 281 ▪ Leverage below targeted capital structure of 2-3x net debt with LTM NIBD/EBITDA (adj.) at 1.6x per 1Q 2023 113 206 IBD
Slide 10: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 10
Slide 11: Net Capital Employed per 1Q 2023
Net Capital Employed per 1Q 2023 Net Capital Employed per 1Q 2023 Net Capital Employed change in 1Q 2023 NOK million NOK million (1) 230 (352) 28 565 (475) (53) 54 (115) 690 119 562 4 677 4 202 2 982 4 677 4 645 DRU Other Net NIBD Equity Net Capital DRU Other Net Capital contracts Capital Employed c
Slide 12: Net interest-bearing debt development
Net interest-bearing debt development Net debt bridge 1Q 2023 highlights NOK million ▪ Net debt per 1Q 2023 presented excluding AGR net debt which was presented as held for sale per end of period and therefore not consolidated ▪ Net debt decreased by NOK 28 million in quarter, to NOK 1 192 million ▪
Slide 13: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 31 March 2023 NOK million 502 Facility Size Maturity Margin 450 52 Revolving (USD) USD 66 million [1] February 2024 4.5% - 5.5% Revolving (NOK) NOK 241 million [1] February 2024 4.5% - 5.5%
Slide 14: Income statement 1Q 2023
Income statement 1Q 2023 COMMENTS ▪ AGR presented as discontinued operations and held for sale per 1Q 2023 and thus not included in consolidated revenue or EBITDA ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only r
Slide 15: Income statement 1Q 2023 (cont.)
Income statement 1Q 2023 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange gain of NOK 69 million ▪ Equity accounted investees contributed negatively with NOK 94 million as a result of negative net profit in period (non-cash
Slide 16: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 16
Slide 17: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 196 64% 181 186 NOK 2 982 million ▪ Large installed base providing firm foundation for 157 strong customer relationship and
Slide 18: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 40 12% conceptual development to project execution 37 36 36 NOK 562 million 35 and offshore operations ▪ Operates two SESV vessels in Brazil
Slide 19: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 622 622 15% range of staffing services: Contract, Permanent Hire 576 600 NOK 690 million 534 & Managed Solutions ▪ Spans a dive
Slide 20: Key short to medium term priorities for Akastor
Key short to medium term priorities for Akastor Monetize key Conclude DRU Timely listing financial investments arbitration process of HMH (✓) DRU contracts DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2023
Slide 21: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 21
Slide 22: Appendix
Appendix Akastor © 2023 | 2023 Slide 22
Slide 23: Selected transactions since inception in 2014
Selected transactions since inception in 2014 April 2023 February 2023 November 2022 August 2022 June 2022 February 2022 a HMH company 100% sale, against cash 100% sale to 100% acquisition of Sale to Establish JV and shares in Sale of preferred equity holding NOK 353m5) DDK 20m USD 95m4) October 202
Slide 24: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Note: AGR is presented as discontinued operations from 1Q 2023. Comparable figures in 2022 have been restated. Akastor © 2023 Slide 24
Slide 25: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Akastor © 2023 Slide 25
Slide 26: Condensed Consolidated Statement of Cash flows
Condensed Consolidated Statement of Cash flows The statement includes cash flows from discontinued operations prior to the disposal. Akastor © 2023 Slide 26
Slide 27: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated financial ▪ Capex and R&D capitalization - a measure of expenditure on PPE or intangible assets that qualify for statements prepared in accordance with IFRS. Such performa
Slide 28: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) March 31 December 31 March 31 December 31 NOK million 2023 2022 NOK million 2023 2022 Non-current borrowings 0 198 Current operating assets 637 774 Current borrowings 1 244 1 142 Less: Gross debt 1 244 1 340 Current operating liabilities 387 531 Less: Net cu
Slide 29: Key figures | Group
Key figures | Group AKASTOR GROUP (continuing operations) Note: AGR is presented as discontinued operations from 1Q 2023. Historical figures have been restated. Akastor © 2023 Slide 29
Slide 30: Key figures | Split per company (1/3)
Key figures | Split per company (1/3) HMH Note: HMH figures presented on 100% basis [1] EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations [2] Equipment backlog defined as Project and Product orders Akastor © 2023 Slide 30
Slide 31: Key figures | Split per company (2/3)
Key figures | Split per company (2/3) AKOFS OFFSHORE Note: AKOFS Offshore figures presented on 100% basis Akastor © 2023 Slide 31
Slide 32: Key figures | Split per company (3/3)
Key figures | Split per company (3/3) OTHER HOLDINGS Akastor © 2023 Slide 32
Slide 33: Odfjell Drilling seller’s credit agreement and warrant structure
Odfjell Drilling seller’s credit agreement and warrant structure Seller’s credit agreement Warrant structure Description: Description: ▪ The preferred equity shares held by Akastor since 2018 were sold to Odfjell Drilling in ▪ Warrant structure adjusted in Q2 2022 following the spin-off of Odfjell T
Slide 34: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 35: Akastor ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 www.akastor.com Akastor © 2023