Abl Group Asa · OSL:ABL

Abl Group Asa — AqualisBraemar LOC — Q4 2021 Earnings Presentation

42 slides from Abl Group Asa's earnings presentation, Feb 25, 2022

  1. Slide 1: 2021 Q4 results

    2021 Q4 results 25 February 2022 ABL-GROUP.COM

  2. Slide 2: Highlights, Financial review, Outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 AqualisBraemar LOC

  3. Slide 3: Disclaimer

    Disclaimer ▪ This Presentation has been produced by AqualisBraemar LOC ASA (the “Company” or “ABL”) 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

  4. Slide 4: 2021 Highlights – Continued delivery on growth and energy transition targets

    2021 Highlights – Continued delivery on growth and energy transition targets • 2021 revenue of USD 150.7 million, up 96% from 2020 (2020: Revenue development 2018-2021, USDm USD 77.0 million) • Up 8% on a pro-forma combined basis1 (2020: USD 139.5 million) 151 • Adjusted EBIT of USD 9.6 million (202

  5. Slide 5: Q4 2021 Highlights

    Q4 2021 Highlights Reported numbers1 Pro-forma combined2 • Revenue increased 8% compared to proforma combined Q4 2020 35.0 38.0 37.8 • Revenues of USD 37.8 million (Q4 20: USD 19.6 million stand-alone1, USD 35.0 19.6 million pro-forma combined2) Revenue (USDm) • Revenue growth primarily driven by re

  6. Slide 6: Our Markets

    Our Markets 6

  7. Slide 7: Our Service Portfolio

    Our Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Technical due diligence • Clean shipping Marine surveys, Marine warranty survey Marine casualty support & Expert witness & litigation • Owner’s engineering & • Engineering & design inspections & audits • Renewables mana

  8. Slide 8: Global partner, local expert – 4% staff growth in quarter

    Global partner, local expert – 4% staff growth in quarter 960 Employees1 63 Offices 39 Countries Global footprint provides clients with local expertise and swift response 8 1 Includes subcontractors on 100% utilisation basis. Calculated as an average during Q4 2021

  9. Slide 9: Renewables now ABL’s second largest market (27% LTM, 30% in 4Q21)

    Renewables now ABL’s second largest market (27% LTM, 30% in 4Q21) Market sector revenue LTM – pro forma combined Segment revenue LTM – pro forma combined1 Longitude 6% Maritime Europe 21% OWC 24% 14% 150.7 Oil&Gas 150.7 USDm 52% USDm Middle East 17% Renewables 27% Asia Pacific 23% Americas 16% Note:

  10. Slide 10: Offshore wind going global – Europe to drop below 50% of installed base by 2025

    RENEWABLES Offshore wind going global – Europe to drop below 50% of installed base by 2025 Offshore wind, new installations (GW) Total installations (% and GW) 10 Source: GWEC

  11. Slide 11: Project: ABL awarded second Erebus owner’s engineering contract

    RENEWABLES Project: ABL awarded second Erebus owner’s engineering contract • In November, OWC entered into a large1 contract to provide engineering services for In 2021, ABL Renewables… the second phase of the floating wind project “Erebus” offshore Wales • Developed by Blue Gem Wind, a JV between T

  12. Slide 12: Project: ABL partnered on 20% of capacity awarded in ScotWind

    RENEWABLES Project: ABL partnered on 20% of capacity awarded in ScotWind • Record 25GW of offshore wind leases awarded as part of “ScotWind” in January 2022, of which ~15GW of floating wind, positioning Scotland at the forefront of this industry • The auction was hotly contested, attracting 74 bids

  13. Slide 13: 2021 marked significant expansion of ABL Renewables services

    RENEWABLES 2021 marked significant expansion of ABL Renewables services OWC services before LOC acquisition LOC / Longitude / Innosea services Fixed OWF Floating OWF Wave & Tidal Emerging Tech. Solar New ABL Renewables hubs in 2021 New 2021 services Onshore wind Battery storage Hydrogen Cork Marseil

  14. Slide 14: E&P capex growth and sanctioning set to hit highest levels since 2012-2013

    OIL & GAS E&P capex growth and sanctioning set to hit highest levels since 2012-2013 E&P capex growth Offshore greenfield capex sanctioning by break-even 40.0% 250 98% of 22e-23e 30.0% sanctioning has 200 breakeven 20.0% 16.6% below USD 60/bbl 10.0% 150 USDbn +37% 0.0% 100 +8% -10.0% -20.0% 50 -30.0

  15. Slide 15: Project: MWS for two major CNOOC development projects

    OIL & GAS Project: MWS for two major CNOOC development projects • ABL has been appointed by CNOOC to provide Marine Warranty Services on the In 2021, ABL Oil&Gas… Enping 15-1 oil complex and the Kenli 6-1 oil complex developments • The Enping 15-1 oil complex development comprises 4 new platforms, 4

  16. Slide 16: Project: ABL representing H&M underwriters in collision outside India

    MARITIME Project: ABL representing H&M underwriters in collision outside India • On November 26, a tanker collided with a bulk carrier in the Gulf of Kutch, India In 2021, ABL Maritime… • ABL has since December represented the H&M underwriters of the struck vessel, including inter alia: ...received

  17. Slide 17: Acquisition of OSD-IMT

    Acquisition of OSD-IMT • In December, ABL acquired OSD-IMT, a specialist consultancy in ship design, operating across renewables, maritime, defence and oil and gas, from Damen Shipyard Group • The acquired operations generated revenues of EUR 1.4 million in 2020 and had 11 employees • OSD-IMT has la

  18. Slide 18: Staff growth driven by increased subcontractors usage and OWC recruitment

    Staff growth driven by increased subcontractors usage and OWC recruitment Highlights Q4 2021 Staff level development1 • Average staff levels increased 4% from Q3 to Q4 1 000 50% • Increased seasonal activity across APAC, Middle East driving subcontractor hours 800 40% • High recruitment and subcontr

  19. Slide 19: Highlights, Financial review, Outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 AqualisBraemar LOC

  20. Slide 20: Revenue and adjusted EBIT

    Revenue and adjusted EBIT Revenue (USDm) Adj EBIT1 (USDm) LOC consolidated LOC consolidated from 1Q21 from 1Q21 2.8 38.3 38.0 37.8 2.5 36.7 2.4 +8% 2.0 +96% 1.8 1.4 18.8 19.8 19.2 19.6 18.4 1.0 0.6 0.4 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Revenue

  21. Slide 21: Segment revenues and EBIT

    Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 14.0 1.4 12.0 1.2 10.0 1.0 8.0 0.8 6.0 4.0 0.6 2.0 0.4 0.0 0.2 -2.0 0.0 -4.0 -0.2 -6.0 -0.4 -8.0 -0.6 4Q20 3Q21 4Q21 4Q20 3Q21 4Q21 • Revenue growth primarily driven by renewables consultancy OWC and specialist engineers

  22. Slide 22: Income Statement

    Income Statement USD thousands Consolidated income statement Q4 2021 Q4 2020 FY 2021 FY 2020 • Revenues for Q4 2021 up 96% from Q4 2020 Revenue 37 797 19 565 150 748 77 015 • Reported growth driven by consolidation of LOC Total revenue 37 797 19 565 150 748 77 015 • Revenues up 8% vs pro-forma combi

  23. Slide 23: Strong financial position, returning excess cash to shareholders and banks

    Strong financial position, returning excess cash to shareholders and banks Highlights Q4 2021 Working capital1 (% of quarterly revenue) • USD 19.8 million in cash 150% 140% 138% 135% • Down from USD 23.2 million in Q3 127% • USD 1.6 million cash flow from operations 125% • USD -0.7 million cash flow

  24. Slide 24: Proposing semi-annual dividend of NOK 0.3 per share

    Proposing semi-annual dividend of NOK 0.3 per share Paid and proposed dividends (NOK/share) • Proposing dividend of NOK 0.3 per share, corresponding to USD 3.2 million • The distribution will for tax purposes be considered a repayment of paid-in 0.30 capital • The dividend is subject to shareholder

  25. Slide 25: Highlights, Financial review, Outlook

    1. Highlights Reuben Segal, CEO 2. Financial review Dean Zuzic, CFO 3. Outlook Reuben Segal, CEO © 2012-2022 AqualisBraemar LOC

  26. Slide 26: ABL – Market views and strategic positioning for 2022

    ABL – Market views and strategic positioning for 2022 Renewables Oil & Gas, Maritime Internal Status and market outlook: Status and market outlook: Status and market outlook: • Strong renewables growth for ABL: 3 new • Clear sign of upturn from 2022, with E&P • ABL has increased revenues 4x in the l

  27. Slide 27: Summary and outlook

    Summary and outlook • Continued year-on-year growth in revenues and EBIT • Strong profitability in APAC and ME compensating for low utilisation in OWC, Europe, Americas • Expect improved utilisation in OWC in Q1 • Strong market outlook: Continued market growth in renewables, expecting major improvem

  28. Slide 28: Appendix

    Appendix © 2012-2022 AqualisBraemar LOC

  29. Slide 29: AqualisBraemar LOC Group targets

    AqualisBraemar LOC Group targets • Financial targets • Organic revenue growth of 5 percent over a business cycle • Renewable and sustainability-oriented services target at 50% of revenue in 2025 • Adjusted EBIT margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparabi

  30. Slide 30: Billing ratio development

    Billing ratio development Billing ratio1 – Total technical staff (including subcontractors) LOC consolidated from 1Q21 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Billing ratio, Aqualis/AqualisBraemar Gliding 3m average, AB 1 For AqualisBr

  31. Slide 31: General (1/2)

    General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar LOC discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an financial highlights for the quarter of the enhanced insight into the ope

  32. Slide 32: 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

  33. Slide 33: Adjustment items

    Adjustment items USD thousands Adjustment items (EBITDA) Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Restructuring and integration costs 5 528 48 55 52 30 185 283 36 29 14 Other special items (incl. share-based expenses) - - 78 76 80 83 318 106 353 531 485 Transaction costs rel

  34. Slide 34: APMs and Key Figures

    APMs and Key Figures USD thousands Profitability measures Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Operating profit (loss) (EBIT) 444 (332) 1 279 1 577 506 (416) 2 946 1 859 2 281 1 319 1 916 Depreciation, amortisation and impairment 252 690 362 363 392 360 1 477 1 072 899 8

  35. Slide 35: APMs and Key Figures

    APMs and Key Figures USD thousands Working capital Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Trade and other receivables 24 252 24 252 26 064 26 568 24 714 41 498 41 498 45 954 51 977 51 898 43 235 Contract assets 12 019 12 019 11 145 9 264 9 873 12 916 12 916 14 952 14 905 1

  36. Slide 36: Consolidated Statement of Income

    Consolidated Statement of Income USD thousands Consolidated income statement Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Revenue 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36 698 38 266 37 986 37 797 Total revenue 18 785 54 792 19 787 19 232 18 431 19 565 77 015 36 698 38

  37. Slide 37: Consolidated Statement of Financial Position

    Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Property, plant and equipment 559 509 475 452 1 213 1 350 1 284 1 169 1 137 Right-of-use assets 2 376 2 021 1 757 1 485 4 707 4 046 3 363 2 938 3 629 Goodwill a

  38. Slide 38: Consolidated Statement of Cash Flow

    Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 2020 Q1 21 Q2 21 Q3 21 Q4 21 Profit (loss) before taxes (992) 9 900 3 000 1 394 441 (2 328) 2 507 1 414 1 866 495 2 408 Adjustments for: Depreciation, amortisation and impairment

  39. Slide 39: Revenues and EBIT - split per segments

    Revenues and EBIT - split per segments USD thousands Revenues Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Middle East 6 087 19 955 7 013 5 595 4 019 5 738 22 365 7 230 7 775 6 282 7 186 Asia Pacific 5 636 14 958 5 745 5 256 5 638 5 610 22 249 8 959 9 129 9 950 11 237 Europe 3 5

  40. Slide 40: Trade receivable & Cash and cash equivalents - split per segments

    Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q4 19 FY 19 Q1 20 Q2 20 Q3 20 Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 Middle East 5 648 5 648 6 915 6 778 4 937 6 338 6 338 6 316 6 997 6 251 6 363 Asia Pacific 6 207 6 207 6 844 6 597 6 050 8 091 8 091 8 2

  41. Slide 41: Top 20 shareholders

    Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 15.4% 2 HOLMEN SPESIALFOND 9 650 000 10.0% 3 BJØRN STRAY 6 017 743 6.2% 4 MELESIO INVEST AS 4 611 016 4.8% 5 SOBER AS 3 500 000 3.6% 6 MUSTANG CAPITAL AS 2 830 334 2.9% 7 HAUSTA INVESTOR AS 2 488 623

  42. Slide 42: © AqualisBraemar LOC, 2022 ABL-GROUP.COM

    © AqualisBraemar LOC, 2022 ABL-GROUP.COM

AqualisBraemar LOC — Q4 2021 Earnings Presentation on 6ix