Akastor Asa · OSL:AKAST

Akastor Asa — Q3 2022 Earnings Presentation

37 slides from Akastor Asa's earnings presentation, Oct 27, 2022

  1. Slide 1: Quarterly presentation – Akastor ASA 3Q 2022

    3Q 2022 Quarterly presentation – Akastor ASA October 27, 2022 Akastor © 2021

  2. Slide 2: 3Q 2022 Highlights

    3Q 2022 Highlights NET CAPITAL EMPLOYED 1) NOK million, 30 September 2022 ▪ Strong EBITDA growth year-on-year Book value per share ▪ Good order intake within Products in period 11.1 2.3 3.8 2.6 2.1 0.9 -1.5 21.4 -5.3 16.1 ▪ Continued solid longer-term outlook driven by increased rig activity 254 (40

  3. Slide 3: Agenda

    Agenda HMH Financial update Ownership agenda Q&A Akastor © 2022 2021 Slide 3

  4. Slide 4: Summary and outlook

    Summary and outlook Market Outlook ▪ Book-to-Bill >1 in the quarter despite a slower than anticipated order uptick due to the first wave of ERP implementation ▪ Market conditions and rig reactivations continue to be tailwinds entering into fourth quarter One Year Anniversary ✓ First joint commercial

  5. Slide 5: HMH has a growing number of opportunities in our non-oil business

    HMH has a growing number of opportunities in our non-oil business… Main uses: • Installed base of over 115 pumps in total in Americas, Heavy duty Europe, Africa, Middle East and APAC. Mining, Process industry and slurry pumps Pipeline Transportation • Top 3 in overall PD pumps sold Main uses: • PBA

  6. Slide 6: Mining sector, EV battery sourcing fueling demand for Mining Equipment

    …including the mining sector, where sourcing for EV batteries, is fueling increased demand for our Mining Equipment Batteries Metal Demand, 2017-2021 Number of mines required, 2021 vs 2030 ▪ EV batteries are the main driver for lithium, but their importance is The report concludes the industry needs

  7. Slide 7: HMH highlights | 3Q 2022

    HMH highlights | 3Q 2022 Proforma financials, IFRS ▪ Revenues up 18% year-on-year driven by an REVENUE1) EBITDA2) EBITDA MARGIN increase in product shipments. Down quarter-on- USD millions USD millions % quarter driven by projects, with specific 181 32 31 19.6 termination effect in 2Q 22 and to a le

  8. Slide 8: Segments highlights

    Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Order intake up 6% year-on-year driven by market tailwinds, but 106 108 102 106 down 24% quarter-on-quarter. Slower than anticipated order 95 uptick in 3Q 22 due to first wave of ERP implementation pushing orders i

  9. Slide 9: Net interest-bearing debt

    Net interest-bearing debt ▪ Net debt of USD 142 million at end of 3Q 2022 NET INTEREST-BEARING DEBT USD millions ▪ USD 8 million instalment paid on Term Loan in 3Q 2022 250 ▪ Leverage below targeted capital structure of 2-3x net debt with LTM EBITDA at 1.4x per end of period 196 108 54 IBD as per 3Q

  10. Slide 10: Agenda

    Agenda HMH Financial update Ownership agenda Q&A Akastor © 2022 2021 Slide 10

  11. Slide 11: Financials highlights per 3Q 2022

    Financials highlights per 3Q 2022 1) HMH and AKOFS Offshore are both owned 50% by Akastor. HMH figures adjusted for expenses that are not a part of normal company operations Akastor © 2022 2021 Slide 11

  12. Slide 12: Financials highlights per 3Q 2022 (cont.)

    Financials highlights per 3Q 2022 (cont.) COMMENTS ▪ Net financial items of NOK 104 million include non-cash items from financial investments of negative NOK 25 million and a net foreign exchange gain of NOK 137 million ▪ Share of net loss from HMH in 3Q includes positive true-up effects from previo

  13. Slide 13: Net interest-bearing debt development

    Net interest-bearing debt development Net debt bridge 3Q 2022 highlights NOK million ▪ Net debt increased by NOK 158 million in quarter, to NOK 1 892 million ▪ “Other” (as shown in graph) includes non-cash foreign exchange effects of NOK 111 million ▪ DDW Offshore net debt of NOK 521 million per end

  14. Slide 14: External financing facilities and liquidity

    External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 30 September 2022 NOK million 357 Facility Size Maturity Margin February 107 Revolving (USD) USD 89 million [1] 4.5% - 5.5% 2023 250 February Revolving (NOK) NOK 250 million [1] 4.5% - 5.5%

  15. Slide 15: Agenda

    Agenda Financial update HMH Ownership agenda Q&A Akastor © 2022 2021 Slide 15

  16. Slide 16: Portfolio of industrial and financial investments

    Portfolio of industrial and financial investments Industrial investments Financial investments Global full-service offshore and onshore Global engineering staffing provider within drilling equipment and service provider multiple sectors 50%1) ~15%3) International drilling, well service and Global pr

  17. Slide 17: HMH

    HMH Business model REVENUE ▪ Global full-service offshore and onshore drilling USD millions equipment provider with a broad portfolio of products 52% Capital Employed 181 and services 163 160 NOK 3 043 million 135 140 ▪ Large installed base providing firm foundation for strong customer relationship

  18. 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 11% conceptual development to project execution 38 37 37 NOK 637 million 35 and offshore operations ▪ Operates two SESV vessels in Brazil

  19. Slide 19: NES Fircroft

    NES Fircroft Business model FINANCIAL DEVELOPMENT1) ▪ NES Fircroft is the world’s leading engineering USD millions staffing provider spanning the Oil & Gas, Capital Employed 12% Power & Renewables, Infrastructure, Life Revenue NIBD NOK 720 million Sciences, Mining, Automotive and Chemicals 2 500 400

  20. Slide 20: AGR

    AGR Business model REVENUE ▪ AGR is a multi-disciplinary engineering NOK millions consultancy and software provider to the 4% Capital Employed 208 energy sector 190 193 184 NOK 228 million 177 ▪ Offers consultancy, asset evaluation, peer study, software and integrated well engineering services Akast

  21. Slide 21: Key short to medium term priorities for Akastor

    Key short to medium term priorities for Akastor DRU contracts Monetize key Conclude DRU Timely listing financial arbitration of HMH investments process DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2022 2021 Slide 21

  22. Slide 22: Agenda

    Agenda Financial update HMH Ownership agenda Q&A Akastor © 2022 2021 Slide 22

  23. Slide 23: Appendix

    Appendix Akastor © 2021 | 2022 Slide 23

  24. Slide 24: Condensed Consolidated Income Statement

    Condensed Consolidated Income Statement Note: MHWirth is presented as discontinued operations in the income statement in the period 1Q-3Q 2021 Akastor © 2022 2021 Slide 24

  25. Slide 25: Condensed Consolidated Statement of Financial Position

    Condensed Consolidated Statement of Financial Position Akastor © 2022 2021 Slide 25

  26. Slide 26: Condensed Consolidated Statement of Cash flows

    Condensed Consolidated Statement of Cash flows Akastor © 2022 2021 Slide 26

  27. 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 ▪ Gross debt - sum of current and non-current borrowings, which do not include lease liabilities statements prepared in accordance with IFRS. Such performance me

  28. Slide 28: Alternative Performance Measures (2 of 2)

    Alternative Performance Measures (2 of 2) September 30 December 31 September 30 December 31 NOK million 2022 2021 NOK million 2022 2021 Non-current borrowings 761 1 372 Current operating assets 878 887 Current borrowings 1 239 16 Less: Gross debt 2 000 1 387 Current operating liabilities 516 647 Les

  29. Slide 29: Key figures | Group

    Key figures | Group AKASTOR GROUP (continuing operations) Akastor © 2022 2021 Slide 29

  30. Slide 30: Key figures | Split per company (1/4)

    Key figures | Split per company (1/4) HMH Note: HMH figures presented on 100% basis, proforma figures for 3Q 21 [1] Excludes discontinued operations, historical figures have been restated [2] EBITDA (adj) excludes expenses that are not part of normal company operations [3] Equipment backlog defined

  31. Slide 31: Key figures | Split per company (2/4)

    Key figures | Split per company (2/4) AKOFS OFFSHORE Note: AKOFS Offshore figures presented on 100% basis Akastor © 2022 2021 Slide 31

  32. Slide 32: Key figures | Split per company (3/4)

    Key figures | Split per company (3/4) AGR Akastor © 2022 2021 Slide 32

  33. Slide 33: Key figures | Split per company (4/4)

    Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2022 2021 Slide 33

  34. Slide 34: ODL preferred equity and warrant instrument

    ODL preferred equity and warrant instrument Preferred equity structure Warrant structure Instrument description: Instrument description: ▪ 5% cash dividend + 5% PIK per annum (semi-annual payment) ▪ Warrant structure adjusted in Q2 following the spin-off of Odfjell Technology with updated number of

  35. Slide 35: Selected transactions since inception in 2014

    Selected transactions since inception in 2014 August 2022 June 2022 February 2022 a HMH company 100% acquisition of Sale to Establish JV October 2021 October 2020 September 2020 June 2019 April 2019 September 2018 April 2018 merged with Subsea Drilling Systems Merged for an economic 100% acquisition

  36. Slide 36: 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

  37. Slide 37: 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 © 2021

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