Abl Group Asa · OSL:ABL

Abl Group Asa — AqualisBraemar LOC — Q2 2021 Earnings Presentation

44 slides from Abl Group Asa's earnings presentation, Aug 20, 2021

  1. Slide 1: 2021 Q2 results

    2021 Q2 results 20 August 2021 ABL-GROUP.COM

  2. Slide 2: Highlights, Financial review, Outlook

    1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC

  3. Slide 3: Disclaimer

    Disclaimer ▪ This Presentation has been produced by AqualisBraemar LOC ASA (the “Company” or “ABL”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential

  4. Slide 4: Q2 2021 Highlights

    Q2 2021 Highlights Reported numbers1 Pro-forma combined2 • Highest quarterly revenues and EBIT in the company’s history 36.7 38.3 • Revenues of USD 38.3 million (Q2 20: USD 19.2 million stand-alone1, Revenue 35.0 19.2 USD 35.0 pro-forma combined2) (USDm) • Continued strong revenue growth in Renewabl

  5. Slide 5: Our Markets

    Our Markets 5

  6. Slide 6: Our Service Portfolio

    Our Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Technical due diligence • Clean shipping Marine surveys, Marine warranty survey Marine casualty support & Expert witness & litigation • Owner’s engineering & • Engineering & design inspections & audits • Renewables mana

  7. Slide 7: The strategic vision

    The strategic vision 1 2 3 Grow through continued expansion in Leverage our Capital efficiency, offshore renewables and sustainability- market leading position consistently return capital oriented services in the O&G and within shipping, oil and gas to improve to shareholders Maritime industries pro

  8. Slide 8: Renewables is now ABL’s second largest market LTM. 29% in 2Q21!

    Renewables is now ABL’s second largest market LTM. 29% in 2Q21! Market sector revenue LTM – pro forma combined Segment revenue LTM – pro forma combined1 Adjusting Longitude 6% 5% OWC 12% Europe 26% Maritime 22% 144.7 Oil&Gas 49% Middle East 144.7 USDm 17% USDm Asia Pacific Renewables 22% 22% America

  9. Slide 9: Global partner, local expert – new offices in Marseilles and Melbourne

    Global partner, local expert – 2 new offices in Marseilles and Melbourne 922 Employees1 62 Offices 38 Countries Global footprint provides clients with local expertise and swift response 9 1 Includes subcontractors on 100% utilisation basis. Calculated as an average during Q2 2021

  10. Slide 10: Innosea strengthens footprint with Marseille office

    RENEWABLES Innosea strengthens footprint with Marseille office • Innosea – ABL’s engineering, design and R&D consulting firm specialising in marine renewables – has expanded its footprint with an office in Marseille • The nearby Alps will be home to France’s largest floating solar PV plant, and ther

  11. Slide 11: Project: Floating wind design turn-key software

    RENEWABLES Project: Floating wind design turn-key software • Innosea has, along with industry partners, developed a software solution to design the anchoring and electrical connections of floating windfarms, optimising the performance and output of subsea connections • The software, called STATIONIS

  12. Slide 12: Project: DolWin5 export cable work

    RENEWABLES Project: DolWin5 export cable work • AqualisBraemar LOC Group has been contracted to provide marine warranty services for the export cable installation of the DolWin5 offshore grid connection project in Germany • Our scope of work covers all marine transportation and installation operatio

  13. Slide 13: Continuing to support Chinese offshore wind – now the largest global market

    RENEWABLES Continuing to support Chinese offshore wind – now the largest global market Selected projects, China New global installations, offshore wind – 2020 Conversion supervision Construction supervision 2x Jack-up rigs to WTIVs 2x Self-propelled deck carriers Guangdong Power Renewable Ouyang Off

  14. Slide 14: Recovery started in rig activity, but capex expected to be muted through 2021

    OIL & GAS Recovery started in rig activity, but capex expected to be muted through 2021 E&P capex growth Rigs under contract 30% 450 400 20% 350 10% 300 0% # Units 250 -10% 200 150 -20% 100 -30% 50 -40% 0 Onshore Offshore Floaters Jackups 14 Source: IHS Markit, SB1 Markets

  15. Slide 15: Project: Major MWS Project Offshore Australia

    OIL & GAS Project: Major MWS Project Offshore Australia • AqualisBraemar LOC was recently awarded a contract to provide MWS services to a major subsea project offshore Australia • Our scope includes MWS services to support the loadout, transport, delivery and installation activities over the project

  16. Slide 16: Project: Marine engineering services for London waterways

    MARITIME Project: Marine engineering services for London waterways • AqualisBraemar LOC has been awarded a framework agreement to supply marine engineering services to support Transport for London’s (TfL)’s marine assets, including piers and the Woolwich Ferry • Under the framework agreement, ABL wi

  17. Slide 17: Project: Adjusting Control of Well Losses

    OIL & GAS / ADJUSTING Project: Adjusting Control of Well Losses • ABL’s Adjusting business line has been instructed on several control of well losses in Q2 • Losses occurred in China, Malaysia, Mexico, US and Canada • Mixture of underground and surface blow-outs • Instructions pertain to both onshor

  18. Slide 18: Order backlog development

    Order backlog development Order backlog Highlights Q2 2021 80 • Order backlog at USD 64.6 million, down 9% from Q1 2021 70 • Backlog should be expected to fluctuate over time as 60 individual contract awards can have significant impact 50 • Backlog is largely driven by long-term project awards in US

  19. Slide 19: Staff growth continues post LOC acquisition

    Staff growth continues post LOC acquisition Highlights Q2 2021 Staff level development1 • Average staff levels increased 3% in Q2 relative to Q1, 1 000 50% driven by primarily by increased activity in Renewables • Subcontractor share of 31%, up from 29% in Q1 800 40% • Subcontractor share significan

  20. Slide 20: Highlights, Financial review, Outlook

    1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC

  21. Slide 21: Revenue and adjusted EBIT

    Revenue and adjusted EBIT Revenue (USDm) Adj EBIT1 (USDm) BTS consolidated LOC consolidated BTS consolidated LOC consolidated from 3Q19 from 1Q21 from 3Q19 from 1Q21 2.8 38.3 2.4 36.7 +9% +99% 1.8 1.4 18.8 19.8 19.2 19.6 18.0 18.4 1.0 9.9 0.6 0.5 0.4 0.3 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21

  22. Slide 22: Segment revenues and EBIT

    Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 12.0 1.0 10.0 0.8 8.0 0.6 6.0 0.4 4.0 2.0 0.2 0.0 0.0 -2.0 -0.2 -4.0 -0.4 -6.0 -0.6 2Q20 1Q21 2Q21 2Q20 1Q21 2Q21 • Underlying revenue growth across the group, particularly in renewables consultancy OWC • High single dig

  23. Slide 23: Income Statement

    Income Statement USD thousands Consolidated income statement Q2 2021 Q2 2020 1H 2021 1H 2020 FY 2020 • Revenues for Q2 2021 up 99% from Q2 2020 Revenue 38 266 19 232 74 964 39 019 77 015 • Reported growth driven by consolidation of LOC Total revenue 38 266 19 232 74 964 39 019 77 015 • Revenues up 9

  24. Slide 24: Strong financial position, returning excess cash to shareholders and banks

    Strong financial position, returning excess cash to shareholders and banks Highlights Q2 2021 Working capital1 (% of quarterly revenue) • USD 24.5 million in cash 150% 146% 142% 140% 138% 135% • Down from USD 28.3 million in Q1 2021 127% • Negative cash flow from operations (USD 1.2 million) due to

  25. Slide 25: Semi-annual dividend of NOK 0.25 per share paid in June

    Semi-annual dividend of NOK 0.25 per share paid in June Paid dividends (NOK/share) • NOK 0.25 dividend per share paid in June, corresponding to USD 2.8 million • Returning capital to shareholders remains a strategic priority for 0.25 AqualisBraemar • AqualisBraemar LOC has implemented a semi-annual

  26. Slide 26: Events after the reporting period: Braemar warrants exercised

    Events after the reporting period: Braemar warrants exercised • In connection with the acquisition of BTS in 2019, Braemar were issued approx 6.5 million warrants1, vesting in 2021 based on performance of the Braemar business and the combined group • In connection with the acquisition of LOC, the Br

  27. Slide 27: Highlights, Financial review, Outlook

    1. Highlights David Wells, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook David Wells, CEO © 2012-2021 AqualisBraemar LOC

  28. Slide 28: Summary and outlook

    Summary and outlook • Highest quarterly revenues and EBIT in the company’s history • Lower activity should be expected in Q3 in line with normal seasonality • Initial integration of LOC and East Point Geo completed ahead of schedule, positive response from staff and clients • Cost synergy target rai

  29. Slide 29: Appendix

    Appendix © 2012-2021 AqualisBraemar LOC

  30. Slide 30: AqualisBraemar LOC Group targets

    AqualisBraemar LOC Group targets • Financial targets • Organic revenue growth of 5 percent over a business cycle • Renewable and sustainability-oriented services target at 50% of revenue in 2025 • Adjusted EBIT margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparabi

  31. Slide 31: Billing ratio development

    Billing ratio development Billing ratio1 – Total technical staff (including subcontractors) BTS consolidated LOC consolidated from 3Q19 from 1Q21 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Billing ratio, Aqualis/AqualisBraemar Gliding 3

  32. Slide 32: Record offshore wind investments in 2020 as oil majors ramp up presence

    RENEWABLES Record offshore wind investments in 2020 as oil majors ramp up presence Offshore wind FIDs (USDbn) Oil majors accounted for 30% of 2020 offshore wind FIDs 60 50.0 50 40 31.9 30 20 10 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 • Offshore wind FIDs in 2020 totaling USD 50 billion, up 56

  33. Slide 33: General (1/2)

    General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar LOC discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an financial highlights for the quarter of the enhanced insight into the ope

  34. Slide 34: General (2/2)

    General (2/2) Alternative Performance Measures (APMs) continued Return on equity (ROE) ROE is calculated as the adjusted profit (loss) for the period attributable to equity holders of the parent, divided by average total equity for the period. The adjusted profit (loss) is annualised for interim per

  35. Slide 35: Adjustment items

    Adjustment items USD thousands Adjustment items (EBITDA) Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Restructuring and integration costs 48 475 5 528 48 55 52 30 185 283 36 Other special items (incl. share-based expenses) - - - - 78 76 80 83 318 106 353 Transaction costs relate

  36. Slide 36: APMs and Key Figures

    APMs and Key Figures USD thousands Profitability measures Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Operating profit (loss) (EBIT) (284) (245) 444 (332) 1 279 1 577 506 (416) 2 946 1 859 2 281 Depreciation, amortisation and impairment 38 362 252 690 362 363 392 360 1 477 1 07

  37. Slide 37: APMs and Key Figures

    APMs and Key Figures USD thousands Working capital Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Trade and other receivables 27 534 25 896 24 252 24 252 26 064 26 568 24 714 41 498 41 498 45 954 51 977 Contract assets 12 288 13 518 12 019 12 019 11 145 9 264 9 873 12 916 12 916 1

  38. Slide 38: Consolidated Statement of Income

    Consolidated Statement of Income USD thousands Consolidated income statement Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Revenue 9 869 17 957 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36 698 38 266 Total revenue 9 869 17 957 18 785 54 792 19 787 19 232 18 431 19 565 77 0

  39. Slide 39: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Property, plant and equipment 520 508 559 509 475 452 1 213 1 350 1 284 Right-of-use assets 2 415 2 167 2 376 2 021 1 757 1 485 4 707 4 046 3 363 Goodwill and i

  40. Slide 40: Consolidated Statement of Cash Flow

    Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Profit (loss) before taxes 11 116 144 (992) 9 900 3 000 1 394 441 (2 328) 2 507 1 414 1 866 Adjustments for: Depreciation, amortisation and impairment

  41. Slide 41: Revenues and EBIT - split per segments

    Revenues and EBIT - split per segments USD thousands Revenues Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Middle East 4 483 5 221 6 087 19 955 7 013 5 595 4 019 5 738 22 365 7 230 7 775 Asia Pacific 1 987 5 909 5 636 14 958 5 745 5 256 5 638 5 610 22 249 8 959 9 129 Europe 791

  42. Slide 42: Trade receivable & Cash and cash equivalents - split per segments

    Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q2 19 Q3 19 Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Middle East 5 450 5 102 5 648 5 648 6 915 6 778 4 937 6 338 6 338 6 316 6 997 Asia Pacific 5 718 5 705 6 207 6 207 6 844 6 597 6 050 8 0

  43. Slide 43: Top 20 shareholders

    Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 15.5% 2 HOLMEN SPESIALFOND 9 240 763 9.6% 3 BJØRN STRAY 6 017 743 6.3% 4 MELESIO INVEST AS 4 611 016 4.8% 5 SOBER AS 3 500 000 3.6% 6 MUSTANG CAPITAL AS 2 435 483 2.5% 7 TRAPESA AS 2 369 964 2.5% 8 M

  44. Slide 44: © AqualisBraemar LOC, 2021 ABL-GROUP.COM

    © AqualisBraemar LOC, 2021 ABL-GROUP.COM

AqualisBraemar LOC — Q2 2021 Earnings Presentation on 6ix