Endur Asa · OSL:ENDUR
Endur Asa — Q4 2020 Earnings Presentation
41 slides from Endur Asa's earnings presentation, Feb 26, 2021
Slide 1: Endúr ASA Q4 and full-year 2020 interim results
Endúr ASA Q4 and full-year 2020 interim results 26 February 2021
Slide 2: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary Appendix
Slide 3: Today's presenters
Today’s presenters Øivind Horpestad Hans Olav Storkås Lasse B. Kjelsås Chairman CEO CFO 3
Slide 4: Highlights in Q4 2020
Highlights in Q4 2020 Highlights Significant events subsequent to year-end ▪ Completion of acquisition of BMO Entreprenør ▪ New CEO and CFO appointed ▪ Strengthening of balance sheet through NOK 125 million ▪ Signed SPA for acquisition of Artec Aqua private placement ▪ Signed SPA for acquisition of
Slide 5: Subsequent events: Acquisitions of Artec Aqua and Marcon
Subsequent events: Acquisitions of Artec Aqua and Marcon Artec Aqua AS: Transaction structure Marcon-Gruppen I Sverige AB: Transaction structure Renowned supplier of land-based aquaculture Sweden’s premiere marine infrastructure company solutions and services • SPA signed 12 January 2021, • All thre
Slide 6: Proforma 2020; Key financials and order backlog
Proforma 2020; Key financials and order backlog Proforma; key financials FY 20201) Proforma order backlog YE 2020 ENDUR 2,705 P&L GROUP - ENDUR BMO ARTEC MARCON PROFORMA 431 NOKm FY2020 FY2020 FY2020 FY2020 FY2020 Sales 1 825 365 399 637 424 EBITDA 221 (5) 69 64 94 631 EBIT 139 (17) 45 62 48 1,643 E
Slide 7: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary Appendix
Slide 8: Introduction to Endúr
Introduction to Endúr Leading provider of Market capitalisation: marine infrastructure and 677 employees HQ in Bergen, Norway NOK 1,403m2) aquaculture solutions Identified two market segments as Leading full-service provider for marine highly fragmented and exposed to infrastructure and aquaculture
Slide 9: Endúr's recent history
Endúr’s recent history Synergy realisation, deleveraging, further Acquisition of consolidation Marcon, a Announced leading marine acquisition of Artec infrastructure Aqua, to grow player in 2021 - presence within Sweden land-based Equity issue of aquaculture NOK 125m equity Acquisition of issue to p
Slide 10: Building a unique service provider within marine infrastructure and aquaculture solutions
Building a unique service provider within marine infrastructure and aquaculture solutions Offshore wind Concrete bridge ✓ Full-service offering within marine infrastructure to take Infield cable large multi-disciplinary projects Water cleansing facility Land-based aquaculture Subsea power cable ✓ Ta
Slide 11: Present in Norway and Sweden
Present in Norway and Sweden Simplified new group structure1) Geographical presence Isfjorden Ålesund Energy services Artec Aqua HQ and Marine infrastructure Aquaculture Legacy2) fabrication facilities Härnosand Marcon marine services BMO Artec Aqua Entreprenør Bergen Stockholm HQ Sjøsterk Marcon ma
Slide 12: A one stop shop with all relevant services, supported by sustainability-driven megatrends
A «one stop shop» with all relevant services, supported by sustainability-driven megatrends Rationale Targeted marine infrastructure segments • Marine infrastructure and aquaculture solutions markets remain highly fragmented - clients seeking “one stop shop”-offerings. • Several segments showing hig
Slide 13: Recent acquisitions of strong stand-alone companies provide strong platform for growth
Recent acquisitions of strong stand-alone companies provide strong platform for growth Marine infrastructure Aquaculture solutions Former Endúr, all segments BMO Entreprenør Artec Aqua Marcon Other • Acquired Q4 2020 • Agreed to acquire in Q1 2021 • Agreed to acquire Q1 2021 • Endúr Sjøsterk (acquir
Slide 14: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary Appendix
Slide 15: Marine infrastructure: diversified segment with large share of public customers
Marine infrastructure Aquaculture Legacy/Other Marine infrastructure: diversified segment with large share of public customers Services offered by Endúr group Competitive position Marine infrastructure market1) Conservative estimate, • Near shore and underwater services: docks, • High barriers to en
Slide 16: Solid presence in high-growth aquaculture market
Marine infrastructure Aquaculture Legacy/Other Solid presence in high-growth aquaculture market Services offered by Endúr group Competitive position Market size (land-based)1) NOKm 22,389 • Land-based (Artec Aqua): turnkey solutions for • Extensive experience from FTS-/R and RAS land based aquacultu
Slide 17: Legacy/Other – Business segments
Marine infrastructure Aquaculture Legacy/Other Legacy/Other – Business segments Business segments Maritime Energy Headquarter / Group functions • Engine workshop with specialist expertise in high- • Following discontinuation of Endúr Industrier AS, • Offers headquarter functions to the group speed d
Slide 18: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary Appendix
Slide 19: Stable historical earnings from a diversified project portfolio
BMO Entreprenør, Artec Aqua and Marcon; Stable historical earnings from a diversified project portfolio Historical revenues Historical EBITDA and EBITDA-margin Diversified projects portfolio and customer base BMO Entreprenør1) - NOKm 500 BMO Entreprenør1) - NOKm BMO – # contracts by size 479 399 19.
Slide 20: 2020 pro forma revenues and EBITDA
2020 pro forma revenues and EBITDA Revenue split by company Adj. EBITDA split by company Adj. EBITDA-margin Comments BMO Entreprenør BMO Entreprenør Marcon 24.7% ▪ Artec Aqua largest contributor to total Artec Aqua revenue 22% Artec Aqua 26% BMO Entreprenør 17.2% 28% ▪ Marcon with the highest EBITDA
Slide 21: P&L 2020 – per entity and consolidated (pro forma)
P&L 2020 – per entity and consolidated (pro forma1) Profit and loss statement Comments ENDUR P&L GROUP - ENDUR BMO ARTEC MARCON PROFORMA NOK'000 FY2020 FY2020 FY2020 FY2020 FY2020 A ▪ Total sales of NOK 1,825m Operating revenue A 1 824 831 B 365 033 398 672 636 643 424 483 Other revenue 30 286 13 10
Slide 22: Balance sheet - per entity and consolidated (pro forma)
Balance sheet - per entity and consolidated (pro forma) Balance Sheet Comments ENDUR Balance sheet GROUP - ENDUR BMO FINANCING ARTEC MARCON PROFORMA NOK'000 31.12.2020 31.12.2020 31.12.2020 31.12.2020 31.12.2020 31.12.2020 ▪ Cf. Note 1 – Business combinations, in the appendix Assets C C A to this re
Slide 23: Completed placement of NOK 1,100 million bond issue
Completed placement of NOK 1,100 million bond issue Terms and structure Comments ▪ Total bond size NOKm 1100 (max NOKm 1600) ▪ The net proceeds from the bond issue will be employed to ▪ Maturity February 2025 (4 yrs) − fully finance the cash consideration related to the acquisitions of Artec Aqua AS
Slide 24: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary Appendix
Slide 25: Well positioned for future profitability
Well positioned for future profitability Priorities for future profitability Revenue bridge and 2022 target1) 2020 pro forma revenues (NOKm) 2,000-2,500 1 Streamline and integrate current exposure/companies Lower range 1 816 within 184 424 reach in 2021 637 without 2 Focus on top line synergies to a
Slide 26: Questions and answers
Questions and answers
Slide 27: Agenda
Agenda Highlights and key figures Company overview Business segment information Financials Summary and outlook Appendix
Slide 28: Appendix
Appendix
Slide 29: Alternative performance measures
Alternative performance measures Basis for preparation Alternative performance measures (cont.) This presentation provides financial highlights for the quarter for Endúr. The financial EBITDA - Profit/loss before i) tax, ii) net finance cost, iii) depreciation, amortisation, information is not repor
Slide 30: Key figures
Key figures P&L Adjusted EBITDA Balance Sheet Q4 FY Q4 FY 31.12 NOK'000 NOK'000 NOK'000 2020 2020 2020 2020 2020 Revenue 144 355 404 552 Reported EBITDA (14 190) (19 849) Total assets 996 921 EBITDA (14 190) (19 849) Adjustment - Transaction costs 7 926 10 169 Total liabilities 615 963 EBIT (440 156
Slide 31: Condensed consolidated statement of profit or loss
Condensed consolidated statement of profit or loss Q4 Q4 FY FY Business combinations: NOK'000 2020 2019 2020 2019 Oceano (consolidated from October 31st 2020) Continued operations BMO Entreprenør AS (consolidated from December 31st, 2020) Operating revenue 131 923 86 968 388 088 334 533 Re. the Q4 2
Slide 32: Condensed consolidated statement of financial position
Condensed consolidated statement of Financial position 31.12 31.12 31.12 31.12 NOK'000 NOK'000 2020 2019 2020 2019 ASSETS EQUITY Deferred tax asset 11 688 19 644 Share capital 7 328 2 131 Intangible assets and goodwill 452 822 114 863 Share premium 369 528 167 002 Property, plant and equipment 179 6
Slide 33: Condensed consolidated statement of cash flows
Condensed consolidated statement of cash flows Q4 Q4 YTD YTD Q4 Q4 YTD YTD NOK'000 NOK'000 2020 2019 2020 2019 2020 2019 2020 2019 CASHFLOW FROM OPERATING ACTIVITIES CASHFLOW FROM INVESTING ACTIVITIES Profit/loss for the period (442 381) (17 150) (457 702) (9 616) Acquisition of property, plant and
Slide 34: Condensed consolidated statement of changes in equity
Condensed consolidated statement of changes in equity Share Other paid-in Retained NOK'000 Share capital Total equity premium capital earnings Equity 01.01.2019 52 000 - - (48 293) 3 707 Business combination (49 874) 178 643 - - 128 769 Business combination - other effects - (12 086) - - (12 086) Ca
Slide 35: Reporting segments
Reporting segments AQUACULTURE MARIN INFRASTRUCTURE OTHER SEGMENTS NOK'000 Q4 2020 FY 2020 FY NOK'000 Q4 2020 FY 2020 NOK'000 Q4 2020 2020 Revenue 15 748 65 227 Revenue 13 483 17 153 AQUACULTURE Revenue 50 932 50 932 EBITDA 265 (419) EBITDA (445) (11 801) Endúr Sjøsterk AS and Endúr Eiendom AS. EBIT
Slide 36: Note 1 – Business combinations OCEANO
Note 1 – Business combinations OCEANO Consideration transferred Goodwill arising from the acquisition Announcement NOKm NOKm date 18.06.2020 Total consideration transferred 352,1 Share price according to agreement, NOK 0,71 - Fair value of identifiable net assets acquired (96,7) Number of shares, #
Slide 37: Note 1 – Business combinations (cont.) BMO
Note 1 – Business combinations (cont.) BMO Consideration transferred Closing date NOKm 17.12.2020 Share price at closing (17.12.2020), NOK 1,17 Number of shares, # 107 470 870 Value of share consideration at closing date 125,2 Cash based payment 297,9 Fair value of options 3,7 Other purchase price a
Slide 38: Experienced management team, board and owners with extensive industrial background
Experienced management team, board and owners with extensive industrial background New executive management Board of directors Existing management in M&A targets Hans Olav Storkås Chairman: Øivind Horpestad Jeppe Raaholt – CEO BMO Entreprenør Former MD of NRC Norge AS, a total of Over 10 year built
Slide 39: Endúr's 20 largest shareholders – proforma
Endúr’s 20 largest shareholders – proforma Shareholder overview1) Ownership of M&A targets Shareholder Mill. Shares Pct. Artec Holding AS 296.1 26.1 Bever Holding AS 84.0 7.4 Middelborg Invest AS 82.0 7.2 Jörn Ryberg Holding AB 71.7 6.3 Former Artec owners Handeland Industri AS 61.3 5.4 Other shareh
Slide 40: Endúr ASA and Covid-19
Endúr ASA and Covid-19 The Group’s performance is affected by the global economic Moreover, as a result of the Covid-19 situation, national authorities conditions in the market in which it operates. The global economy have adopted several laws and regulations with immediate effect and has been exper
Slide 41: Endúr is an Old Norse word
Endúr is an Old Norse word derived from the word ‘endurnýja’ – which means to renew, to refresh, to change. But endúr also has several other meanings – not least ‘enduring’ or ‘persisting’ – and can be read as a short form of the English word endurance, which means tireless perseverance; to withstan