Integrated Wind Solutions Asa · DUS:9UG1
Integrated Wind Solutions Asa — Investor Presentation (March 2021)
30 slides from Integrated Wind Solutions Asa's investor presentation, March 2021
Slide 1: Integrated Wind Solutions Investor Presentation
Integrated Wind Solutions March 2021 | Investor Presentation Strictly Private & Confidential This document is for the use of the recipient only and should not be copied or distributed to any other person or entity. Please refer to important disclosures at the beginning of this presentation.
Slide 2: Disclaimer and Important Information (I/II)
DISCLAIMER AND IMPORTANT INFORMATION (I/II) This presentation (the "Presentation") has been prepared by Integrated Wind Solutions AS (the "Company" and together with its subsidiaries the "Group"), with the assistance of ABG Sundal Collier AS, Clarksons Platou Securities AS and Fearnley Securities AS
Slide 3: Disclaimer and Important Information (II/II)
DISCLAIMER AND IMPORTANT INFORMATION (II/II) This Presentation does not constitute an offer of, or an invitation to purchase, any of the shares in any jurisdiction in which such offer or sale would be unlawful. This Presentation does not constitute or form part of any public offer of securities and
Slide 4: Today's Presenters
TODAY’S PRESENTERS Lars Henrik Røren Christopher Andersen CEO Heidenreich COO 4
Slide 5: Becoming the Leading Pure Play Offshore Wind Service Company
BECOMING THE LEADING PURE PLAY OFFSHORE WIND SERVICE COMPANY Ordering two vessels with option to Strategic acquisitions and organic order four additional vessels growth of complementary services to targeting blue chip customers and construction and/or operations phase long-term contracts of windfarm
Slide 6: Deal Structure and Use of Proceeds
DEAL STRUCTURE AND USE OF PROCEEDS Key transaction details ▪ EUR ~20m of the proceeds from Order two purpose the private placement will be used Issuer ▪ Integrated Wind Solutions AS built offshore wind to fund two purpose built offshore service vessel wind service vessels with planned ▪ NOK ~750m, o
Slide 7: Integrated Wind Solutions | To Be a Fully Integrated Provider of Offshore Wind Services
INTEGRATED WIND SOLUTIONS | TO BE A FULLY INTEGRATED PROVIDER OF OFFSHORE WIND SERVICES Offshore wind is an essential part of ‒ Offshore wind is at the frontiers of the energy transition with expected installed capacity of ~250 GW by 1 the energy transition needed to achieve 2030 globally as leveliz
Slide 8: Offshore Wind Needs to Grow Fast to Reach Green Deal Target of Net Zero
OFFSHORE WIND NEEDS TO GROW FAST TO REACH GREEN DEAL TARGET OF NET ZERO BY 2050 Drivers European renewable generation1 Continued upward revisions of estimates2 The European energy mix is set for a TWh Offshore Wind, Cumulative Capacity (GW) ~5,750 significant change in the coming 300 decades in orde
Slide 9: IWS Targeting Above 50% of a Windfarm's Value Chain
IWS TARGETING ABOVE 50% OF A WINDFARM’S VALUE CHAIN Installation / Operations and Decommissioning Development Turbine supply Balance of Plant Commissioning maintenance ▪ Planning, engineering, ▪ Components and assembly ▪ All non-turbine ▪ All installation and ▪ Support the ongoing ▪ Decommissioning
Slide 10: Operations and Maintenance Market Expected to Grow Significantly
OPERATIONS AND MAINTENANCE MARKET EXPECTED TO GROW SIGNIFICANTLY – VESSEL HIRE ONLY A MINOR PART Annual O&M spending1,2 <(EURbn) Vessel hire only minor part of total O&M spending 3,4 8.0x Vessel hire Other O&M Spending 18.6 ~20% ~80% Integrated services 2.4 ~EUR 0.20bn turnover for each % market sha
Slide 11: Offshore Services Compatible with Use of C/SOV
OFFSHORE SERVICES COMPATIBLE WITH USE OF C/SOV Wind Turbine Generator • Mechanical/Electrical service • Blade inspections and repair (drone) • Tower inspection and repair Balance of Plant above water line • Utility systems inspections and repairs • Structural inspections • Corrosion protection • Saf
Slide 12: Integrated Wind Solutions Positioned to Take Advantage of the Strong Market Backdrop
INTEGRATED WIND SOLUTIONS POSITIONED TO TAKE ADVANTAGE OF THE STRONG MARKET BACKDROP Integrated Wind Solutions Vessels Services #1 #2 Option vessel #1 Option vessel #2 Option vessel #3 Option vessel #4 Potentially acquire or develop a firm providing engineering, manpower and services in the construc
Slide 13: Perfect Timing for Entry to the C/SOV Market
PERFECT TIMING FOR ENTRY TO THE C/SOV MARKET The market needs newbuilds… …as supply is restrained Tier 1 supply Total wind demand international (Europe, Taiwan, Rest of Apac ex. China) 160 Tier 2 supply • Need additional vessel to meet demand in near term future 151 134 137 • Difficult for large, tr
Slide 14: Attractive Cash Flow Yield
ATTRACTIVE CASH FLOW YIELD Annual net cash flow per vessel Day rates for large CSOV’s Tier 1 & 21 Annual EBITDA per vessel at various dayrates2 at various dayrates2, 3 Historic day rates Forecasted rates Implied EV/EBITDA per vessel Implied cash flow yield per vessel 39k 14.1x 9.1x 6.7x 5.3x 4.4x 3%
Slide 15: Purpose Built Offshore Wind Newbuilds Offer a Multitude of Benefits
PURPOSE BUILT OFFSHORE WIND NEWBUILDS OFFER A MULTITUDE OF BENEFITS COMPARED TO EXISTING VESSELS Several tangible benefits from purpose built… …resulting in significantly lower opex1 EUR/day ~19,500 New vessels with lower risk and cost of capital compared to older vessels with conversion risk and fu
Slide 16: The Majority of Tier 1 Vessels Is Locked in on Long-Term Contracts
THE MAJORITY OF TIER 1 VESSELS IS LOCKED IN ON LONG- TERM CONTRACTS 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Owner Status Vessel Name Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Bibby Marine Active Bibby Wavemaster
Slide 17: Vessel Design Providing Flexibility with High Operability
VESSEL DESIGN PROVIDING FLEXIBILITY WITH HIGH OPERABILITY The motion compensated gangway can be adjusted between A 12-30 meters in height to access all turbine platforms, both floating and bottom-fixed, and regardless of turbine size A Vessel Design Dedicated motion compensated 3d “colibri” crane fo
Slide 18: Vessel Design Enabling Low-Carbon Footprint
VESSEL DESIGN ENABLING LOW-CARBON FOOTPRINT Energy-saving technology Plug-in hybrid Optionality for zero-emission On-site charging ✓ Digital twin developed for improved ✓ Plug-in hybrid solution with batteries and ✓ Ready for all-electric operation using operational decision support combustion engin
Slide 19: Building at a Reputable Yard with Robust Track-Record and at Attractive Terms
BUILDING AT A REPUTABLE YARD WITH ROBUST TRACK- RECORD AND AT ATTRACTIVE TERMS Ordering from a reputable yard… …offering first-class vessels at competitive prices ▪ CMHI is the 4th largest shipyard group in EURm New build cost per vessel China, located in Haimen, Jiangsu 67 Background ▪ Extensive ex
Slide 20: Clear Near-Term Contracting Focus and a Well-Established Strategy for the Future
CLEAR NEAR-TERM CONTRACTING FOCUS AND A WELL- ESTABLISHED STRATEGY FOR THE FUTURE EBITDA Near-term contracting strategy ▪ Currently working on tenders for construction and commissioning phases ▪ Active dialogues with potential clients to secure contracting of tonnage B Services Longer-term strategy
Slide 21: Coupling Decades of Maritime Heritage and Knowledge with Offshore Wind Competencies
COUPLING DECADES OF MARITIME HERITAGE AND KNOWLEDGE WITH OFFSHORE WIND COMPETENCIES Long track-record within shipping and offshore + Strong in-house capabilities 1939 Awilco AS is established Extensive experience in successfully delivering on newbuild projects in Asia on time and cost with own site-
Slide 22: Management Team with Extensive Experience Backed by a Board with Deep Industry Roots
MANAGEMENT TEAM WITH EXTENSIVE EXPERIENCE BACKED BY A BOARD WITH DEEP INDUSTRY ROOTS Management team Board of Directors Lars-Henrik Røren – Chief Executive Officer Sigurd Einar Thorvildsen – Chairman of the Board ▪ +30 years of experience from the Investment Banking and Asset ▪ CEO of the Awilhelmse
Slide 23: Company Structure
COMPANY STRUCTURE Management agreement Awilhelmsen Integrated Wind for corporate services Management AS Solutions AS 100% Awilco Management agreement for technical services Technical Awind AS Services Services AS 100% 100% 100% 100% 97% 100% 3% Awind 1 AS Awind 2 AS Awind 3 AS Awind 4 AS Awind 5 AS
Slide 24: Integrated Wind Solutions Aims to Deliver Highly Attractive and Sustainable Risk-Adjusted Returns
INTEGRATED WIND SOLUTIONS AIMS TO DELIVER HIGHLY ATTRACTIVE AND SUSTAINABLE RISK-ADJUSTED RETURNS Ordering two vessels with option to Strategic acquisitions and organic order four additional vessels growth of complementary services to targeting blue chip customers and construction and/or operations
Slide 25: Appendix
= Integrated SWind 7 Solutions
Slide 26: Vessel Specifications for the Vessels in Order
VESSEL SPECIFICATIONS FOR THE VESSELS IN ORDER Overview of vessel specifications by category Vessel design ▪ Kongsberg Maritime 3D compensated ▪ Step/less approach from packing area to the wind turbine gangway ▪ Reach heigh min-max (m): 10 – 32 ▪ Max capacity (mT): 25 3D compensated ▪ AHC offshore c
Slide 27: Vessel Definitions
VESSEL DEFINITIONS SPECIALIZED WIND SERVICE VESSELS NON SPECIALIZED VESSELS Tier 1: CSOV / SOV CTV Tier 2: Converted offshore vessels Typical O&G subsea tonnage with SPS code • Vessels originally intended for O&G industry but converted by installing fixed gangways Construction Service Operation Serv
Slide 28: Evolution of Offshore Wind Transportation
EVOLUTION OF OFFSHORE WIND TRANSPORTATION Crew Transfer Vessel (CTV) Helicopter CTV + Moored floating hotel 1 2 3 Offshore vessel with temporary gangways (TIER 3) Offshore vessel with fixed gangway (TIER 2) Purpose built Walk-to-Work vessel (TIER 1) 4 5 6 28
Slide 29: Offshore Wind Opportunities Is a Global Play, but Europe Is Leading
OFFSHORE WIND OPPORTUNITIES IS A GLOBAL PLAY, BUT EUROPE IS LEADING Installed capacity Europe (GW) by 2030E >110 China >60 N. America Asia ex. China >15 >50 Oceania S. America >2 >3 29 Source: Rystad Energy ; The Company
Slide 30: A Growing Installed Base Will Drive a Substantial Increase in Number of Turbines
A GROWING INSTALLED BASE WILL DRIVE A SUBSTANTIAL INCREASE IN NUMBER OF TURBINES Number of offshore turbines Comment 40,000 +4.8x Currently ~7,300 offshore wind turbines installed on a 35,000 global basis • ~5,300 (~73%) in Europe 30,000 • ~2,300 (~32%) installed +40km from shore 25,000 Expected to
Integrated Wind Solutions — Investor Presentation (March 2021) on 6ix