Slide 1: Trading Update Q1 2024
TRADING UPDATE Q1 2024 Henrik Badin, CEO Tina Tønnessen, CFO Oslo, 14 May 2024
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets. The presentation includes and is based, inter alia, on forward-looking information and statements that
Slide 3: On Steady Course
ON STEADY COURSE Revenues in line with Q1 last year Maritime Solutions and Aftersales delivered double digit EBITDA margins. Industrial Solutions still impacted by costs related to capacity build-up and delayed order intake Comprehensive cost savings initiated and more underway Several R&D and busin
Slide 4: Key Financials | Group
KEY FINANCIALS | GROUP By quarter 255 929 236 232 213 215 26.0 Industrial 82 111 5.6 78 11.0% 321 65 Options 2.7% 106 3.6 Aftersales 38 48 49 50 42 1226 -15.5 1066 Backlog Maritime 115 99 107 94 67 -37.5 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Revenu
Slide 5: Business Segments
BUSINESS SEGMENTS EBITDA margin and share of group revenue Q1 2024 MARITIME AFTERSALES INDUSTRIAL Back to double-digit Approaching NOK 200 million Ongoing measures to increase EBITDA margin in annualised revenues efficiency and awaiting future contract awards 13.2% 12.3% -8.0% EBITDA margin EBITDA m
Slide 6: Maritime Solutions
MARITIME SOLUTIONS Numerous options at shipyards have expired, freeing up slots for a new series of ships being tendered by Scanship New tenders are being negotiated, indicating updated cost levels and enhanced margins Industry is transitioning towards larger ships equipped with increasingly sophist
Slide 7: Important Q1 Wins in Cruise
IMPORTANT Q1 WINS IN CRUISE Cruise newbuild contracts awarded | total value EUR 19.3 million February 2024 EUR 19.3 million 1+1 Wastewater purification, food waste processing and garbage handling systems Solids handling to prevent discharge overboard, including dewatering, thermal hydrolysis, drying
Slide 8: A Busy 2024 for Vow at European Yards
A BUSY 2024 FOR VOW AT EUROPEAN YARDS Meyer Turku (3) Scanship’s scheduled activities in 2024 • Commissioning on 9 ships • Main system deliveries for 16 ships A trusted technology provider and Meyer Werft Papenburg (2) supplier to leading cruise operators and their preferred shipyards Chantiers De A
Slide 9: Strong Backlog and Pipeline in Cruise
STRONG BACKLOG AND PIPELINE IN CRUISE Significant tendering activity with promising growth opportunities Ships with Vow equipment In backlog, confirmed In backlog as ‘option’ Current backlog comprises 34 confirmed Currently being bid orders for cruise ships under construction 5 10 Number of options
Slide 10: Aftersales
Aftersales revenues AFTERSALES in NOK million 12-month rolling Stable, steady business built on service and technology leadership Approaching the NOK 200 million mark on an annualised basis Activity growing steadily with increased number of ships in operation 188 million Double digit EBITDA margins,
Slide 11: Industrial Solutions
INDUSTRIAL SOLUTIONS Segment still impacted by costs related to building of market position and capacity costs in anticipation of new contracts Heat treatment solutions continue to perform well, with good margins and strong order intake, enjoying a long-standing relationships with leading industrial
Slide 12: Project Status: Hønefoss and VGM
PROJECT STATUS: HØNEFOSS AND VGM Key customer Vow Green Metals (VGM) secures financing Early Production Line payment secured Onstream in November 2023. Production currently being ramped up VGM enters lease agreement with bank. Releasing in excess of NOK 40 million in cash to Vow in Q2 Status Phase I
Slide 13: Project Status: Rhode Island
PROJECT STATUS: RHODE ISLAND USD 27 million contract to deliver complete biochar and renewable energy system Detailed engineering including process equipment, piping and electrical is wrapping up with major deliverables is well underway Main equipment deliveries to site expected to start during fall
Slide 14: References in Circular Solutions
REFERENCES IN CIRCULAR SOLUTIONS Examples from Vow’s extensive reference list which has opened doors to significant project opportunities Envigas Japanese utility NSR System deliveries to Transforming sewage Biochar from garden Sweden’s leading sludge into biogenic waste for soil producer of BioCarb
Slide 15: Focused on Concrete Opportunities
FOCUSED ON CONCRETE OPPORTUNITIES Closer to investment decisions with combined contract value for Vow of EUR 120 million End-of-life tires Sewage plant FEED Caribbean Carbon Refinery® Currently designing first ELT Paid FEED study for a major Co-operation agreement plants, located in the UK project,
Slide 16: Financials
FINANCIALS
Slide 17: Income Statement
INCOME STATEMENT Key figures Revenue in line with Q1 last year NOK million Q1 2024 Q1 2023 FY 2023 Gross margin for the quarter improved to 235.7 918.5 31.5% during Q1 2024, up from 25.3% Revenue 232.3 for FY 2023, following cost increases in ongoing projects recorded during 2023 Gross profit 73.1 9
Slide 18: Income Statement
INCOME STATEMENT Key figures NOK million Q1 2024 Q1 2023 FY 2023 Depreciation increased driven by finalised development projects Revenue 232.3 235.7 918.5 Net financial items for Q1 2024 include net interest (-NOK 10.1m) EBITDA 5.6 26.0 -54.7 and Vow ASA’s share of net profit from the associated com
Slide 19: Balance Sheet
BALANCE SHEET Key figures NOK million 31.03.24 31.12.23 Increase in intangible assets relate to Intangible assets and goodwill investments in new technology and currency 605.3 588.1 effects Accounts receivable 213.2 241.0 Contracts in progress 309.2 270.3 Increased net working capital during the Oth
Slide 20: Cash Flow
CASH FLOW Key figures NOK million Q1 2024 FY 2023 Negative operating cash flow of NOK 8.8m driven by build up in working capital Cash and cash equivalents 57.5 42.5 Investments for the period amounted to NOK 11.2m at start of period Cash flow from financing activities was negative NOK Net cash flow
Slide 21: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Combination of securing new contracts, improved margins and increased efficiency Cost savings and cash discipline … and secure new contracts Improving margins in existing contracts Remaining order backlog amounting to NOK 1,066 million Cost reduction programme to redu
Slide 22: Concluding Remarks
CONCLUDING REMARKS
Slide 23: On Steady Course
ON STEADY COURSE Stable revenues, double digit EBITDA in two of three business segments Further cost saving underway Improving financial performance by a combination of securing new contracts, improved margins and increased efficiency Cruise operators are renewing their fleets, ordering new and bigg
Slide 24: Believing in a future where industry is harmonized with nature
BELIEVING IN A FUTURE WHERE INDUSTRY IS HARMONIZED WITH NATURE