Hunting Plc · LSE:HTG
Hunting — Shareholder Meeting (April 2021)
36 slides from Hunting's shareholder meeting presentation, April 2021
Slide 1: Hunting PLC Annual General Meeting 2021: Resilience Through A Global Crisis
Hunting PLC Annual General Meeting 2021 Resilience Through A Global Crisis
Slide 2: Agenda
Agenda Introduction Questions & Answers Jay Glick Jay Glick Chief Executive’s Review Business of AGM Jim Johnson Jay Glick • Strategic milestones Proxy votes received • 2020 overview and Q1 2021 update • Current market outlook Close • ESG metrics 1 Hunting PLC | 2021 Annual General Meeting submit qu
Slide 3: Board of Directors
Board of Directors Jay Glick Jim Johnson Bruce Ferguson Non-executive Chairman Chief Executive Finance Director Annell Bay Carol Chesney Richard Hunting, CBE Keith Lough Non-executive Director Non-executive Director Non-executive Director Senior Independent Chair of Remuneration Committee Chair of A
Slide 4: Introduction
Introduction w KOKI 52) ORO
Slide 5: Introduction
Introduction On behalf of the • 2020 – an extremely challenging year, for the world, Board, I want to for the energy industry and for Hunting thank and recognise the commitment • Management has delivered key strategic targets of our employees despite the market backdrop during the year • Decisive ac
Slide 6: Shareholders
Shareholders Shareholder Distribution (%) 3.0% 1,367 shareholders at 6 April 2021 Number of Percentage of issued UK 16.0% Ordinary shares Ordinary shares Europe Hunting Family 26,043,098 15.8 3.0% North America 78.0% GLG 13,579,104 8.2 RoW Schroders 12,268,889 7.4 M&G 10,999,836 6.7 BlackRock 10,108
Slide 7: Chief Executive's Review
2 Chief Executive’s Review
Slide 8: Hunting – COVID-19
Hunting – COVID-19 2020 has underlined Hunting’s operations Our customers Hunting helps the importance of were allowed to demand cleaner, deliver energy Hunting as a key remain open more efficient, strong but also the supplier to a critical throughout the quality assured sustainability and sector CO
Slide 9: Where we operate
Where we operate We operate from Products are sold directly or The Group has 2.8m sq ft 31 manufacturing sites through our network of 16 of manufacturing capacity in 11 countries distribution centres, primarily located in North America 8 Hunting PLC | 2021 Annual General Meeting submit questions to
Slide 10: Overview of 2020 and Q1 Trading Update
Overview of 2020 and Q1 Trading Update
Slide 11: Strategic Milestones
Strategic Milestones Acquired Enpro Subsea Divested Drilling Tools • $32.8m consideration • Contributed assets of $17.4m • 2020 revenue - $10.3m • Exited capital intensive product line Investment in Well Data Labs New technology introduced • $2.5m financing provided • Detonating cord • “Big Data” in
Slide 12: Acquisition of Enpro Subsea
Acquisition of Enpro Subsea Enpro has added low cost, flexible production modules to Hunting’s offshore portfolio 11 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.plc.uk
Slide 13: Divestment of Drilling Tools
Divestment of Drilling Tools Hunting divested its Drilling Tools business to Rival in December 2020 Since 2012, the business has absorbed a high level of capital, which can now be re-deployed Hunting retains good exposure to the US land drilling market, through an entity with good scale in a competi
Slide 14: Investment in Well Data Labs
Investment in Well Data Labs The investment in Well Data Labs allows Hunting to access the ‘Big Data’ sub-segment of the onshore drilling market The investment has good synergies with Hunting Titan’s instrumentation product lines 13 Hunting PLC | 2021 Annual General Meeting submit questions to agm@h
Slide 15: Key Capital Investment
Key Capital Investment Hunting Titan completed the $5.0m investment in its detonating cord manufacturing line in July 2020 Increases Hunting Titan’s product offering Annual production capacity of c.3.0 million feet 14 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.plc.uk
Slide 16: New Technology
New Technology ControlFire® Recon T-Set One® setting Tool Shear Seal Valve E-Line Variball™ Roller System 15 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.plc.uk
Slide 17: Significant Group Restructuring
Significant Group Restructuring Operating sites: 31 (2019: 36) Distribution centres: 16 (2019: 19) Headcount: 1,923 (2019: 2,956) Annualised cost savings: $86.0m Headcount 70 380 Hunting Titan US & Canada 364 880 EMEA Asia Pacific 229 Central 16 Hunting PLC | 2021 Annual General Meeting submit quest
Slide 18: 2020 Market Overview
2020 Market Overview The impact of the OPEC+ price war and Average oil price in 2020 was 20% lower COVID-19 had a catastrophic impact on than prior year, but sentiment is slowly oil demand and sentiment returning at the current oil price WTI Oil Price US Rig Count Onshore Offshore $75 1,000 $50 800
Slide 19: 2020 Financial Summary
2020 Financial Summary Revenue EBITDA EBITDA margin Loss from operations $626.0 $26.1 million million 4% $16.4 million (2019: $960.0 million) (2019: $139.7 million) (2019: 15%) (2019: $94.3 million profit) Capital investment Net assets Cash and bank Final dividend $14.7 million $976.6 $101.7 4.0 mil
Slide 20: What we manufacture
What we manufacture Oil Country Tubular Perforating Advanced Goods (“OCTG”) Systems Manufacturing Subsea Intervention Tools Drilling Tools 2020 2019 Change Revenue by Product Grouping $m $m % Perforating Systems 154.5 363.0 -57 OCTG and Premium Connections 264.7 357.0 -26 Advanced Manufacturing 74.3
Slide 21: Strong performance from Subsea group
Strong performance from Subsea group Our Stafford, RTI and Enpro businesses all assisted in the delivery of growth in 2020 despite market conditions seen in the year RTI won significant orders throughout the year, while Stafford reported year on year revenue growth RTI and Enpro further position Hun
Slide 22: Hunting continues to diversify
Hunting continues to diversify AMG supplies to the We manufacture parts Falcon 9 Rocket Fleet for the F135 engine We have won an order with Hunting Dearborn manufactures a UK geothermal project photonic masts for submarines 21 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting
Slide 23: Q1 2021 Summary
Q1 2021 Summary • Market indicators continue to strengthen, including WTI oil price and drilling spend projections • Healthy cash and bank position recorded at 31 March 2021, along with a strong balance sheet • Quarter-on-quarter revenue improvement within Hunting Titan. Other operating segments rep
Slide 24: Current market outlook
Current market outlook • Sentiment has improved Global Rig Count Forecasts Rig Count - Q4 2020 Rig Count - Q1 2021 strongly in Q1 2021 2,500 • Good recovery reported in outlook 2,000 +15% +18% +18% for rig counts and drilling spend from 1,500 +2% +12% +15% Q2 2021 onwards 1,000 • c.20% increase in p
Slide 25: Environmental, Social and Governance
Environmental, Social and Governance
Slide 26: Strong Safety and Quality performance delivered in the year
Strong Safety and Quality performance delivered in the year Record year for safety, despite COVID-19 4.8m hours worked, manufacturing 8.0m parts Safety 2020 0.67 2019 1.17 2018 1.49 Quality 2020 0.24% 2019 0.30% 2018 0.22% 25 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.
Slide 27: ESG: caring for employees, caring for communities
ESG: caring for employees, caring for communities Our China facility commissioned a safety mask manufacturing line, which were sent to all Group facilities and donated to communities 26 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.plc.uk
Slide 28: Diversity
Diversity Board Composition 71% Senior Management 88% Male Male 12% Female Female 29% Workforce 78% Male Female 22% 27 Hunting PLC | 2021 Annual General Meeting submit questions to agm@hunting.plc.uk
Slide 29: Carbon and climate reporting increased in the year
Carbon and climate reporting increased in the year, enabling firm targets to be set Target of a long term Intensity Factor of <30 10% reduction in total carbon footprint set in 2019 Intensity Factor 2020 50.8 2019 37.4 2018 38.6 Carbon Dioxide (tonnes) 2020 31,826 2019 35,874 2018 35,171 28 Hunting
Slide 30: Resilience
Resilience Growth Strong Returns • Enpro acquisition completed expanding our Subsea Portfolio • Disposal of the Drilling Tools division to Rival Downhole Tools • RTI continuing to perform well, with growing backlog • Continuation of dividends • Strategic Investment in Well Data Labs • Balance sheet
Slide 31: Questions & Answers
at | cli 27s Na 4 staid: f o 5 c <x ) Questions
Slide 32: Q1 Why has the Company stopped providing tax vouchers?
Q1 Why has the Company stopped providing tax vouchers with dividend information? A1 The tax rules on dividend distributions changed in the UK a number of years ago, with the level of tax on all dividends now driven by certain thresholds and the personal tax rates of shareholders. We would recommend
Slide 33: Q2 Share buyback programme question
Q2 Given the fall in the Company’s market cap over the past year and the wide discount to tangible NAV and available free cash flow, what is management’s perspective on initiating a share buyback programme as the best way to deploy available capital for the benefit of shareholders currently? A2 The
Slide 34: Resolutions & Proxy Votes
4 Resolutions & Proxy Votes
Slide 35: Proxy votes received as at 19 April 2021
Proxy votes received as at Monday 19 April 2021 Resolution For Against Withheld 1 To receive the Annual Report 132,602,760 – 99.9% 15,582 – 0.1% 510,457 2 To approve the Directors’ Remuneration Policy 122,526,677 – 92.0% 10,600,216 – 8.0% 1,906 3 To approve the Annual Report on Remuneration 107,942,
Slide 36: Thank you
Hunting PLC Annual General Meeting 2021 Thank you www.huntingplc.com