Akastor Asa · OSL:AKAST
Akastor Asa — Q2 2023 Earnings Presentation
30 slides from Akastor Asa's earnings presentation, Jul 13, 2023
Slide 1: Quarterly presentation – Akastor ASA
2Q 2023 Quarterly presentation – Akastor ASA July 13, 2023 Akastor © 2023
Slide 2: 2Q 2023 Highlights
2Q 2023 Highlights NET CAPITAL EMPLOYED 1) NOK million, 30 June 2023 Book value per share ▪ Increased EBITDA year-over-year and quarter-over-quarter following increased service order trend 11.4 2.0 2.6 2.1 0.9 -1.5 17.6 -1.9 15.7 ▪ Continue to experience growth in order intake for the fifth consecut
Slide 3: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 3
Slide 4: Summary and outlook
Summary and outlook ▪ Continue to experience growth in order intake for the fifth consecutive quarter. Book-to-Bill >1x in the quarter. ▪ Secured strategic orders related to SPS activity within the quarter ▪ Increased EBITDA year-over-year and quarter-over- quarter following increased service order
Slide 5: HMH highlights | 2Q 2023
HMH highlights | 2Q 2023 Proforma financials, IFRS ▪ Revenues up 4% year-on-year and up 2% quarter- REVENUE1) EBITDA2) EBITDA MARGIN (Adj.) on-quarter driven by increase in spares and USD millions USD millions % overhaul repair orders partially offset with 196 34 17.8 17.9 181 186 189 17.1 decrease
Slide 6: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 35% year-on-year and up 12% quarter-on- 140 138 quarter following past quarter increased order trend and 102 106 123 increasing spares recertifications and overhaul volumes ▪ Order intake up 16%
Slide 7: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 175 million at end of 2Q 2023 NET INTEREST-BEARING DEBT ▪ USD 8 million instalment payment on Term Loan in 2Q 2023 USD millions ▪ Leverage of 1.6x per 2Q 2023 (Net debt / LTM EBITDA) 282 ▪ RCF utilization increased by USD 20 million during Q2 2023 to fund
Slide 8: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 8
Slide 9: Net Capital Employed
Net Capital Employed Net Capital Employed per 2Q 2023 1) Development in 2Q 2023 NOK million NOK million 248 (414) 18 24 (62) 589 (531) 27 (17) 717 153 545 4 820 4 289 4 820 3 135 4 677 DRU Other Net NIBD Equity Net Capital DRU Other Net Capital contracts Capital Employed contracts Employed Employed
Slide 10: Net interest-bearing debt development
Net interest-bearing debt development Net debt bridge 2Q 2023 highlights NOK million ▪ Net debt decreased by NOK 123 million in the quarter, to NOK 1 069 million, driven by full settlement of the Odfjell Drilling seller’s credit agreement ▪ “Other” (as shown in graph) includes negative non-cash fore
Slide 11: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 30 June 2023 NOK million 619 Facility Size Maturity Margin Revolving (USD) USD 66 million [1] February 2024 5.5% 244 Revolving (NOK) NOK 241 million [1] February 2024 5.5% 375 Subordinated
Slide 12: Income statement 2Q 2023
Income statement 2Q 2023 COMMENTS ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only represent a minor part of Akastor’s investments. Akastor © 2023 Slide 12
Slide 13: Income statement 2Q 2023 (cont.)
Income statement 2Q 2023 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange gain of NOK 50 million ▪ Equity accounted investees contributed negatively with NOK 78 million as a result of negative net profit in period (non-cash
Slide 14: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 14
Slide 15: Portfolio overview
Portfolio overview Industrial investments Financial investments Company Service offering Ownership Global full-service offshore and onshore drilling equipment and service provider 50% Global provider of subsea well construction and intervention services 50% Global engineering staffing provider withi
Slide 16: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 196 65% 181 186 189 NOK 3 135 million ▪ Large installed base providing firm foundation for 157 strong customer relationship
Slide 17: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 40 11% conceptual development to project execution 37 36 36 NOK 545 million and offshore operations 28 ▪ Operates two SESV vessels in Brazil
Slide 18: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 670 15% range of staffing services: Contract, Permanent Hire 600 622 622 NOK 717 million 576 & Managed Solutions ▪ Spans a dive
Slide 19: Key short to medium term priorities for Akastor
Key short to medium term priorities for Akastor Monetized Conclude DRU Monetize Timely listing arbitration process of HMH ✓ DRU contracts DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2023 Slide 19
Slide 20: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 20
Slide 21: Appendix
Appendix Akastor © 2023 | 2023 Slide 21
Slide 22: Selected transactions since inception in 2014
Selected transactions since inception in 2014 April 2023 February 2023 November 2022 August 2022 June 2022 February 2022 a HMH company 100% sale, against cash 100% sale to 100% acquisition of Sale to Establish JV and shares in Sale of preferred equity holding NOK 353m5) DDK 20m USD 95m4) October 202
Slide 23: Key figures | Group
Key figures | Group AKASTOR GROUP (continuing operations) Note: AGR is presented as discontinued operations from 1Q 2023. Historical figures for income statement have been restated, while balance sheet information included discontinued operations prior to divestment. Akastor © 2023 Slide 23
Slide 24: Key figures | Split per company (1/4)
Key figures | Split per company (1/4) HMH Note: HMH figures presented on 100% basis 1) EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations 2) Equipment backlog defined as Project and Product orders Akastor © 2023 Slide 24
Slide 25: Key figures | Split per company (2/4)
Key figures | Split per company (2/4) AKOFS OFFSHORE Note: AKOFS Offshore figures presented on 100% basis Akastor © 2023 Slide 25
Slide 26: Key figures | Split per company (3/4)
Key figures | Split per company (3/4) DDW Offshore Note: DDW Offshore was previously included in “Other Holdings” prior to 2Q 2023 Akastor © 2023 Slide 26
Slide 27: Key figures | Split per company (4/4)
Key figures | Split per company (4/4) OTHER HOLDINGS Note: DDW Offshore is excluded from Other Holdings from 2Q 2023. Historical figures have been restated. Akastor © 2023 Slide 27
Slide 28: Odfjell Drilling seller’s credit agreement and warrant structure
Odfjell Drilling seller’s credit agreement and warrant structure Seller’s credit agreement Warrant structure Description: Description: ▪ The preferred equity shares held by Akastor since 2018 were sold to Odfjell Drilling in ▪ Warrant structure adjusted in Q2 2022 following the spin-off of Odfjell T
Slide 29: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 30: AKASTOR ASA
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 www.akastor.com Akastor © 2023