Expro Group Holdings N.v. · NYSE:XPRO
Expro — JP Morgan Energy, Power & Renewables Conference 2024
32 slides from Expro's conference presentation, Jun 17, 2024
Slide 1: Energy, Power & Renewables Conference
NYSE: XPR O Energy, Power & Renewables Conference June 17-18, 2024 | New York, NY
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: Get to Know XPRO
Get to Know XPRO T T M R E VE NUE 1 ~80% ~70% $1,557m INT ERNAT IO NAL OFFSHORE Asia Pacific ~$2.6bn Market Capitalization2 17% North & Latin America 33% ~$2.5bn Middle East North Africa BY REGION 16% 60 Countries ST RONG CASH Z ERO NET - DEBT Enterprise Value 3 FL OW OUT L OOK BAL ANCE SHEET with s
Slide 4: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Value-Adding Services Market Leadership Global Operating Across the Well Lifecycle Footprint Cost-effective, technology- We “punch above our weight” Activity in +60 countries, enabled services and because of long-standing with 80% of revenue from solut
Slide 5: Positioned to Capitalize on Increasing Demand for Energy Services
Positioned to Capitalize on Increasing Demand for Energy Services Estimated Value of Projects Sanctioned/Expected to be Sanctioned ($Bn)1 Favorable Macro Backdrop • Strong and stable oil prices are expected to drive Deepw ater FIDs +$300bn $171 for 2024-2027, levels not increased operator investment
Slide 6: Investment Momentum Shifting to International and Offshore Markets Provides Opportunity for Expro
Investment Momentum Shifting to International and Offshore Markets Provides Opportunity for Expro Total Capital Investments by Year ($Bn)1 50% $ 600 Increased offshore and CAPEX North America Onshore International Offshore international investment 40% (i.e., long cycle development) 500 30% provides
Slide 7: CAPEX Spend on Long Lead Items Provides Duration to the Cycle
CAPEX Spend on Long Lead Items Provides Duration to the Cycle New Wellhead and Tree Spend ($m)1 Sustained CAPEX spend Offshore Onshore provides opportunity for $2,588 $2,586 $2,680 $2,535 steady margin expansion $2,487 $2,393 $2,195 $2,077 Drilling and completion activity increases demand for techno
Slide 8: …with a Significant Footprint in Key Growth Markets
…with a Significant Footprint in Key Growth Markets North & Latin Europe & Middle East & Asia America Sub-Saharan Africa North Africa Pacific Management anticipates strong Excluding the ENI Congo project, Expro continues to build Management anticipates margin year-over-year growth driven by manageme
Slide 9: Get to Know Well Construction
GET TO KNOW WELL CONSTRUCTION Focused on innovation Tubular Products & Services to reduce drilling costs, enhance well integrity • Frank’s Tubular Running Services (TRS) has a market leading position in deepwater Tubular Cementing Tubular Running Services alongside WFRD and improve safety. Products
Slide 10: Expanding the Portfolio With Cost-Effective, Technology-Enabled Services and Solutions
Expanding the Portfolio With Cost-Effective, Technology-Enabled Services and Solutions Technology & Innovation Tubular Running Services Drives Differentiation in the Market Industries first and only fully autonomous iTONG Tubular Running Cem enting Coretrax Specialty Services iTONG Technologies Quik
Slide 11: Outlook for Medium-Term
Outlook for Medium-Term Expro Financial Outlook Medium-Term Targets for Revenue, Contribution Margin and Adjusted EBITDA Margin 1,2 • Intend to remain disciplined with costs and capex through this growth cycle • Multi-year growth phase should support 1% to 3,000 57% Adjusted EBITDA Margin 0.6 2% ann
Slide 12: Disciplined & Strategic Approach to Acquisitions
Disciplined & Strategic Approach to Acquisitions Smart, synergies-focused M&A to increase relevance (with customers and investors) Rigorous Criteria Proven Track Record of Successful M&A Complement existing capabilities, leverage our Expro / Frank’s Merger global operating footprint, and deliver mor
Slide 13: Balanced Capital Approach to Create Long-Term Value for Shareholders
Balanced Capital Approach to Create Long-Term Value for Shareholders Balanced Capital Allocation Framework Maintain Strong Balance Sheet Fund Organic Growth Investments Committed to keeping total capex (maintenance and Maintain growth) at 7-8% of revenue Disciplined Capital Allocation to Drive Pursu
Slide 14: Why Invest in Expro
Why Invest in Expro Reasons to Own Expro • Strong and stabile oil prices are expected to drive increased operator investment and activity after nearly 10 years of limited upstream spending • Project approvals will drive customer capital spending (~70% of Expro’s revenue) for 3-5 years, thereby provi
Slide 15: Appendix
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 16: 2024 Revenue Guidance Supplement
2024 Revenue Guidance Supplement Supplemental Commentary & Outlook 2024 Revenue Guide Details1 ($m) • Focus on maximizing utilization of existing Midpoint of guidance implies 9% revenue headline grow th YoY and ~12% grow th in assets and growing higher margin, lower base business (excluding M&A) cap
Slide 17: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacif ic Interv ention (APAC) & Integrity $60 North & $59 Latin America (NLA) Well Q1 2024 Construction Q1 2024 Middle East $130 North Af rica Revenue Revenue $120 (MENA) by Geographic by Area of $71 Market Well Flow Management Capability $383m $383
Slide 18: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)1 Revenue up 53% Adjusted EBITDA since Q4 2020 up ~2.6x Well Managemen t Well Co nstruction since Q4 2020 $407 $397 $383 $370 $85 $351 $334 $339 $330 $313 $314 $145 $70 $72 $144 $120 $296 $116 $67 $284 $280 $138 $251 $250 $251 $
Slide 19: Historical Adjusted Cash Flow from Operations and A-EBITDA less Capex
Historical Adjusted Cash Flow from Operations and A-EBITDA less Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA2 / Capital Expenditures ($m) TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$150m since Q4 2020 $85 $99 $70 $72 $67 $73 $51 $51 $50 $64 $48 $45 $42
Slide 20: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESS A MENA APA C Well Co nstruction Well Fl ow Manag ement Sub sea Well Access Well In tervention an d Integrity $407 $407 $397 $397 $383 $383 $370 $370 $62 $57 $351 $65 $351 $54 $334 $339 $60 $334 $33
Slide 21: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 50% Well Managemen t Well Co nstruction 41% 42% 41% 42% $60 38% 40% 37% 40% $50 $407 $40 30% $397 $383 $30 $370 20% $351 $20 $334 $339 10% $330 $10 $313 $314 $14
Slide 22: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $70 50% $70 50% 44% 42% 43% 44% 45% 43% 43% 43% 44% 43% 41% 42% 41% 42% 40% 41% $60 38% 40% 37% $60 38% 39% 38% 38% 38% 37% 40% 36% 36% 40% 34% 35% 33% 34% 33% 34% 33% $50 $50 30% 30% $40 $40 $30 $30 20% 20% $20
Slide 23: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 40% $50 40% $45 $45 35% 31% 35% 30% 30% 30% 29% $40 $40 27% 27% 26% 30% 25% 30% $35 25% $35 26% 21% 21% 21% 21% 25% $30 22% 21% 25% $30 19% 19% 18% 18% 18% 18% $25 20% $25 17% 16% 20% 15% 15% 15% 14%
Slide 24: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support costs since Q4 TTM support costs up 6% w ith $94 Product Line and central costs 2020 dow n from 31% to run-rate revenue up 16% Geography-based supp
Slide 25: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + + + + $2,413 $2,295 $2,271 $2,301 $2,297 $2,178 $1,927 $1,878 $1,744 1 Q1 202 2 Q2 202 2 Q3 202 2 Q4 202 2 Q1 202 3 Q2 202 3 Q3 202 3 Q4 202 3 Q1 202 4 1) “Other” includes revenue from backlog and re-estimations. Copy
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q1 2024 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 Q2 23 Q3 23 Q4 23 Q1 24 Adjusted EBITDA 1 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $ 85 $ 67 $ 274 Depreciation, amo
Slide 27: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM 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 Q2 23 Q3 23 Q4 23 Q1 24 Total revenue $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339 $ 397 $ 370 $ 407 $ 383 $1,557
Slide 28: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) ($ in millions, except per share amounts) Three Months Ended Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Net Incom e (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9 $ (14) $ (12) $ (3) Adjustments: Mer
Slide 29: Notes
Notes Copyright 2024 Expro. All rights reserved.
Slide 30: Notes
Notes Copyright 2024 Expro. All rights reserved.
Slide 31: Notes
Notes Copyright 2024 Expro. All rights reserved.
Slide 32: Get to Know
GET TO KNOW
Expro Group Holdings — JP Morgan Energy, Power & Renewables Conference 2024 on 6ix