Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q4 2022 Earnings Presentation
23 slides from Expro's earnings presentation, Feb 23, 2023
Slide 1: Q4 2022 Key Highlights
Q4 | 2022 Key Highlights NYSE: XPRO
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: Growing Shareholder Value
Growing Shareholder Value Leading & Through-Cycle Compelling Accelerating Differentiated Portfolio Resiliency Rate-of-Change Story Cash Flow Significant upside Driven by breadth Improving business mix Debt free balance sheet from International & of services and Recently deployed and free cash flow u
Slide 4: Q4 2022 Expro Highlights
Q4 2022 Expro Highlights Q4 revenue of $351m increased 5% sequentially and 19% year-over-year Adjusted EBITDA for Q4 was $70m (20% of revenue). Excluding $5m and $17m in Q4 and Q3 respectively, of start-up and commissioning costs on a large subsea project in Asia Pacific (APAC), Adjusted EBITDA was
Slide 5: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Asia Pacific Well (APAC) Intervention & Integrity $47 $52 North & Middle East Latin America North Africa Q4 2022 1 (NLA) Q4 2022 1 Well Construction (MENA) Revenue: Revenue: $55 by Geographic $132 by Area of $138 Market Well Flow Capability $351m Management $
Slide 6: Q4 2022 Regional Highlights
Middle East & North Africa Middle East & North Africa Q4 2022 Regional Highlights The MENA region has achieved 10 million man-hours Loss Time Incidents (LTI-Free). Secured a contract with a major international client in Algeria for We won a major Integrated Well Test use of our innovative Octopoda™
Slide 7: Customer and Technology Highlights
Customer and Technology Highlights iTONG™ Proud to be named Champion Automated rig-floor technology in Distributed Fiber Optic Sensing Innovative subsea intervention solution Integrated Well Service Company line for another top industry award data delivers value to client in Asia helps secure UK P&A
Slide 8: Merger Synergies: Driving Margin Expansion
Merger Synergies: Driving Margin Expansion COST SYNERGIES REVENUE SYNERGIES 1 ~$55 million of annual run-rate $80-$100M in merger Complimentary capabilities, cost synergies within 12 months synergies expected operating footprints and following close, ramping up to within 24-36 months customer relati
Slide 9: Ahead of Plan on Integration and Synergies Capture
Ahead of Plan on Integration and Synergies Capture TOTAL EXPECTED ANNUALIZED COST SYNERGIES ($m) Achieved $66m of annualized cost savings in first 15 months, 94% of total targeted cost synergies Combined support EXPECTED IN FIRST costs declined from 24-36 MONTHS 31% of revenue in Q4 2020 SAVINGS IN
Slide 10: Sustainable Energy Solutions for Expro and its Customers
Sustainable Energy Solutions for Expro and its Customers Emissions Management Environmental Efficiencies Annular Well Integrity SUSTAINABLE ENERGY SOLUTIONS WELL FLOW MANAGEMENT WELL INTERVENTION & INTEGRITY Customer reduced Green House Unique solution intervening the A Carbon-efficient solution red
Slide 11: Our Inaugural ESG Report
Our Inaugural ESG Report: A Material Step Up One of most important organizations In ESG Ratings that evaluates companies’ ESG programs has upgraded Expro’s OVER THE PAST YEAR Only 2% sustainability rating two full levels from below average to above average. Helping to address the OF COVERED COMPANIE
Slide 12: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $35 35% 30% 30% $40 27% 26% 30% $30 30% $35 26% 21% 21% 21% 25% 23% 23% 22% $30 19% $25 21% 25% $25 20% 19% 15% 16% 15% 15% 14% 15% $20 18% 17% 18% 16% 18% 20% $20 12% 11% 15% 15% 15% 14% 13% $15
Slide 13: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 45% 44% 42% 43% 44% 45% 50% 41% 42% 42% 41% 42% 41% 42% $60 38% 40% 37% $374 40% $351 $50 $348 $342 $334 $40 30% $326 $330 $313 $314 $30 20% $139 $296 $284 $280 $20 $138 10% $156 $139 $129 $10 $123 $25
Slide 14: Q1 2023 and 2023 Outlook
Q1 2023 2023 Consistent with historical patterns, Based on our strong performance in 2022 revenue and profitability in Q1 are and a positive activity outlook, we expected to be impacted by the currently anticipate generating 2023 winter season in the Northern revenues of between $1,450m and Hemisphe
Slide 15: Appendix: Our ESG report, Follow us on
Appendix: To learn even more about Expro, check out these additional places to get in touch with us. Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Subscribe to our channel www.expro.com 15
Slide 16: Get to Know XPRO: We Are Well Experts
Get to Know XPRO: We Are “Well Experts” OUR REVENUE A DIVERSE SET OF GLOBAL CAPABILITIES IN: COUNTRIES EMPLOYEES WELL MANAGEMENT WELL CONSTRUCTION INTERNATIONAL OFFSHORE U.S. LAND Well Flow Management Subsea Well Access Well Intervention & Integrity Asia Pacific STRONG CASH FLOW OUTLOOK DEBT FREE BA
Slide 17: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m) Expro Frank’s XPRO Well Management Well Construction Total Revenue up 40% Adjusted EBITDA up since Q4 2020 169% since Q4 20203 $374 Legacy $348 $342 $351 $70 $330 $334 $326 $313 $314 $139 $296 $284 $280 $138 $51 $51 $51 $156 $1
Slide 18: Historical Revenue by Geographical Market and Product Line
Historical Revenue by Geographical Market and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Total Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $374 $374 $348 $342 $351 $348 $342 $351 $334 $42 $334 $326 $56 $330 $326 $330
Slide 19: Historical Support Costs
Historical Support Costs Support Costs ($m) Trailing Twelve Months ($m) Research, engineering and development Research, engineering and development Product Line and central costs Product Line and central costs Geography-based support costs Aggregate support Geography-based support costs $103 $102 co
Slide 20: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s XPRO Expro Frank’s XPRO Legacy Legacy $99 $40 $40 $37 $37 $33 $33 $10 $10 $73 $31 $31 $10 $10 $66 $28 $8 $9 $27 $5 $18 $52 $44 $41 $22 $20 $21 $21 $3 $19 $19 $32 $2
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended TTM 2022 ($ in millions) 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-Mar-22 30-Jun-22 30-Sept-22 31-Dec-22 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $
Slide 22: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 1,279 Cost of re
Slide 23: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended 31-Dec-21 31-Mar-22 30-Jun-22 30-Sept-22 31-Dec-22 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 Adjustm