Slide 1: 2023 Q2 results
2023 Q2 results 31 August 2023 abl-group.com
Slide 2: Highlights, Financial review, Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by ABL Group ASA (the “Company” or “ABL Group”) 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, h
Slide 4: Q2 2023 Highlights
Q2 2023 Highlights • Revenue of USD 67.9m, up 64% compared to Q2 2022 (USD 41.4m) 67.9 • Growth primarily due to integration of Add Energy1 and AGR2 Revenue 41.4 45.2 • Organic growth primarily from renewables consultancy OWC (+47% YoY) (USDm) • Adjusted EBIT of USD 5.3m (Q2 22: USD 4.4m) Q2'22 Q1'2
Slide 5: Financial review
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 6: New segment structure aligned with group main brands
New segment structure aligned with group main brands Middle East Europe AGR OWC Longitude APAC Americas Previous segments Add Energy 1 Asset Integrity Well & Reservoir Management Services ABL AGR OWC Longitude New segments Share of group revenues (Q2 2023) 51% 28% 16% 5% Segment EBIT margin2 (Q2 202
Slide 7: Abbreviated segment revenues and EBIT
Abbreviated segment revenues and EBIT USD million Revenues Q2 22 Q1 23 Q2 23 • Revenue growth driven primarily by OWC (+47% ABL 32.0 32.4 36.0 OWC 7.6 8.8 11.2 YOY) and integration of Add Energy and AGR Longitude 3.1 2.7 3.2 AGR - 3.3 19.7 • Reduction in group Adjusted EBIT margin mainly Elimination
Slide 8: Abbreviated Financials: Income Statement
Abbreviated Financials : Income Statement USD million • Increase in revenue (+64% YoY), staff costs (+79%) and Abbreviated income statement Q2 22 Q2 23 other operating costs (+57%) primarily from M&A • Sale of Loss Adjusting, acquisition of Add Energy and AGR Total revenue 41.4 67.9 • Pro-forma comb
Slide 9: Abbreviated Financials: Cash Flow
Abbreviated Financials : Cash Flow USD million • Non-cash adjustments consisting of depreciation, Abbreviated cash flow Q2 22 Q2 23 amortisation and share based compensation • Increased working capital across existing business partly Profit (loss) before taxes 2.8 3.6 offset by net cash acquired thr
Slide 10: Abbreviated Financials: Balance Sheet
Abbreviated Financials : Balance Sheet USD million • Net cash1 decreased to USD 14.6 million Abbreviated balance sheet Q1 23 Q2 23 • Net working capital increased, but working capital ratio down to 56% due to low working capital intensity of AGR Cash and cash equivalents 28.8 26.4 • Working capital
Slide 11: Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 12: High organic staff growth, accelerated by AGR acquisition
High organic staff growth, accelerated by AGR acquisition Staff level development1 2 000 60% • 1,552 average number of employees in quarter represents 38% growth from Q1 2023 • 28% increase in permanent staff 1 000 10% • Freelancer share of 34%, up from 25% in Q1 • Increase mainly driven by integrat
Slide 13: Diversified revenue base across sectors and regions
Diversified revenue base across sectors and regions Market sector revenue LTM pro-forma combined1 Segment revenue LTM pro-forma combined1,2 Maritime Longitude 12% 4% OWC 13% Renewables 20% 259.9 259.9 ABL 49% USDm USDm Oil&Gas AGR 68% 34% 13 Note: Market sector revenue based on management accounts (
Slide 14: Acquisition of Delta Wind Partners supports further growth for OWC
Acquisition of Delta Wind Partners supports further growth for OWC Delta Wind Partners at a glance Strategic rationale • Delta Wind Partners is an offshore wind consultancy providing • Significantly strengthens OWC’s expertise and track record within specialist solutions wind turbine generators (WTG
Slide 15: Offshore wind market: 2023 on course for record European FIDs
RENEWABLES Offshore wind market: 2023 on course for record European offshore wind FIDs Offshore wind FIDs, Europe (GW and EURbn) Comments 8 30 • On course for a record year in European offshore wind FIDs 7 25 • In July, BP and Total paid world New capacity, FIDs (GW) 6 record EUR 13bn for rights to
Slide 16: O&G investments on the rise, jackup activity highest since 2015
OIL & GAS O&G investments on the rise, jackup activity highest level since 2015 E&P capex growth Rigs under contract 40% 440 280 420 260 30% 400 240 20% 17% 380 220 10% # Jackups # Floaters 360 200 0% 340 180 320 160 -10% 300 140 -20% 280 120 -30% 260 100 -40% 240 80 2023e 2003 2004 2005 2006 2007 2
Slide 17: Summary and outlook
Summary and outlook • All time high revenues, with solid profitability • OWC continues to grow rapidly, 47% compared to same quarter last year • Add Energy profitable in Q2, integrating into ABL and AGR • Completed acquisitions of AGR (April) and Delta Wind Partners (August) • Significant increase i
Slide 18: Appendix
Appendix © 2012-2023 ABL Group
Slide 19: Pro-forma combined financials (simplified)
Pro-forma combined financials (simplified) USD millions Revenue Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q/Q growth Y/Y growth ABL Group, as reported 39.6 41.4 44.1 42.8 167.9 45.2 67.9 50.4% 64.2% Loss Adjusting (divested May 2022) -1.9 -1.0 -2.9 Add Energy (consolidated 3Q22) 5.2 5.6 10.8 AGR (co
Slide 20: ABL Group Service Portfolio
ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Well engineering, Surveys, inspections & Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence management & servicing audits • Renewables mana
Slide 21: Global partner, local expert
Global partner, local expert 1,552 Employees1 65 Offices2 39 Countries2 Global footprint provides clients with local expertise and swift response 21 1 Includes freelancers on FTE basis. Calculated as average during 2Q 2023. 2 As of end 2Q 2023. Does not include Delta Wind Partners.
Slide 22: Billing ratio development
Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation 78% 77% 77% 75% 75% 75% • Increased billing ratio 74% 73% including freelancers due to increased freelancer share after AGR integration 69% 69% 69% 68% • AGR consolidated from Q2 67% 67% 66% 6
Slide 23: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into financial highlights for the quarter of the the operations, financ
Slide 24: 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
Slide 25: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Restructuring and integration costs 36 29 14 362 - - 19 170 189 - - Other special items (incl. share-based expenses) 353 531 485 1 475 456 209 504 603 1 773 393 404 Transaction
Slide 26: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Operating profit (loss) (EBIT) 2 281 1 319 1 916 7 375 2 806 3 868 3 329 2 512 12 514 2 708 4 397 Depreciation, amortisation and impairment 899 820 998 3 790 810 758 939 836 3
Slide 27: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Cash and cash equivalents 24 532 23 212 19 815 19 815 21 212 18 711 29 267 30 974 30 974 28 819 26 390 Less: Interest bearing bank borrowings 13 310 12 504 11 661 11 661 10 817 9 997 14 166
Slide 28: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Revenue 38 266 37 986 37 797 150 748 39 643 41 367 44 100 42 788 167 897 45 177 67 938 Total revenue 38 266 37 986 37 797 150 748 39 643 41 367 44 100 42 788
Slide 29: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Profit (loss) before taxes 1 866 495 2 408 6 184 3 151 2 847 3 026 1 629 10 654 326 3 563 Non-cash adjustment to reconcile profit before tax to cash flo
Slide 30: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Property, plant and equipment 1 284 1 169 1 137 1 345 1 787 2 993 2 101 2 163 2 329 Right-of-use assets 3 363 2 938 3 629 3 619 8 046 7 954 7 904 7 639 8 236 Go
Slide 31: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 ABL 31 905 30 953 31 062 125 047 31 299 32 002 31 253 30 803 125 357 32 370 36 016 OWC 6 077 6 665 6 759 24 110 7 199 7 587 8 191 7 762 30 739 8 751 11 184 Longitude 2 201
Slide 32: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 ABL 30 500 28 785 28 742 28 742 30 462 30 730 24 880 24 902 24 902 25 564 27 560 OWC 3 445 2 779 3 004 3 004 3 234 3 896 3 512 3 192 3 1
Slide 33: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 12.1% 2 HOLMEN SPESIALFOND 10 450 000 8.5% 3 DNB BANK ASA 7 637 835 6.2% 4 BJØRN STRAY 6 217 743 5.0% 5 RGA ENERGY HOLDINGS AS 6 055 556 4.9% 6 NORDEA BANK ABP, FIL 6 055 555 4.9% 7 MELESIO INVEST AS
Slide 34: The ABL Group family
The ABL Group family ABL Group ASA – a global brand family combining the deepest pool of expertise across energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans throughout the life-cycle of a project of asset. The Energy & Marine Consultants. The En
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