Vow Asa · OSL:VOW
Vow Asa — H1 2024 Earnings Presentation
21 slides from Vow Asa's earnings presentation, Aug 29, 2024
Slide 1: 2024 half-year report: Status and outlook
2024 half-year report STATUS AND OUTLOOK Henrik Badin, CEO Tina Tønnessen, CFO Oslo, 29 August 2024
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets. The presentation includes and is based, inter alia, on forward-looking information and statements that
Slide 3: Delivering according to plan
DELIVERING ACCORDING TO PLAN Robust business. Positioned Concrete actions taken to Margins back on track to drive growth strengthen balance sheet Significant turnaround Substantial investments in and improve liquidity showcasing enhanced technology, acquisitions and market Has negotiated new banking
Slide 4: Getting back on the right track
GETTING BACK ON THE RIGHT TRACK Key financials by quarter 253 26.0 929 213 20.5 86 Industrial 82 111 78 11% 65 8% 3.6 5.6 316 Options 106 55 Aftersales 38 48 49 50 42 -15.5 1 226 1 061 Backlog Maritime 115 107 112 99 94 67 -37.5 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24
Slide 5: Status and outlook
STATUS AND OUTLOOK Cruise projects: Strong order backlog. Valued by key cruise operators I and yards. Steadily growing revenues, and margins are improving Three robust and Aftersales: Highly recurring business with stable margins. II Addressable market increases for each new ship delivered expanding
Slide 6: Riding third wave of recovery in cruise
RIDING THIRD WAVE OF RECOVERY IN CRUISE Cruise market to be “fully recovered” this year and cruise ships ordering is picking up1 4000 50 Cruise contracting – Thousand GT Cruise contracting – # 46 45 3500 3 40 3000 Post Covid 36 36 35 2500 2 Post 08/09 financial crisis 32 30 2000 1 Post 9/11 25 19 20
Slide 7: Preferred and trusted partner
PREFERRED AND TRUSTED PARTNER 9 ships commissioned and main system deliveries for 16 ships scheduled for 2024 Ships with Vow equipment In backlog, confirmed In backlog, as "option" Meyer Turku (3) Currently being bid 16 Meyer Werft 13 5 Papenburg (2) 10 10 6 2 8 Chantiers De Atlantique (6) 6 6 Finca
Slide 8: Contracts are becoming larger and more integrated
CONTRACTS ARE BECOMING LARGER AND MORE INTEGRATED Cruise newbuild contracts awarded in H1 2024 | Total value EUR 47.7 million Wastewater purification, Wastewater purification, food waste processing and food waste processing and garbage handling systems garbage handling systems Solids handling to pre
Slide 9: Recurring and growing
RECURRING AND GROWING Aftersales Cruise ships with Scanship Cruise ships by shipowners revenues 194 equipment onboard (accumulated) equipped with Scanship tech million in NOK mill 12-month 158 173 170 166 rolling 161 million 151 Other 143 46 48 130 125 119 114 101 83 93 85 million 32 76 34 68 66 64
Slide 10: Growth story since IPO
GROWTH STORY SINCE IPO Significant growth in 955 919 REVENUES in MNOK 783 381 365 CAGR +21% 304 460 454 381 97 108 Legacy business 19 380 330 376 Maritme & 359 Aftersales growth 247 200 172 230 236 309 294 ~4x 146 132 165 since 2014 89 107 179 194 100 126 120 69 83 82 54 52 39 2014 2015 2016 2017 20
Slide 11: Dominance in a growing sector
DOMINANCE IN A GROWING SECTOR Leading the Biocarbon Market Vow Green Metals aims to be the top Biocarbon provider for the Metallurgic industry, using Vow's cutting-edge technology First Factory Launch Elkem is the first client, with the Follum factory launching soon, backed by funding from Enova, DN
Slide 12: Landmark biochar project
LANDMARK BIOCHAR PROJECT Major Contract Win Vow secured a USD 27 million contract with Quonset Soil Solution in Rhode Island to produce biochar for soil health using Vow technology Green Development Backing Quonset Soil Solution is owned by Green Development, a leader in large-scale renewable energy
Slide 13: Building a pipeline of opportunities
BUILDING A PIPELINE OF OPPORTUNITIES Invested NOK 900+ million over five years… ...leveraging on the largest ever window of opportunity 944m End-of-life Tyres Bid pipeline - By application Converting end-of-life tyres into in equipment value as of 20271 sustainable raw materials and liquid fuels 449
Slide 14: Focusing on near-term opportunities
FOCUSING ON NEAR-TERM OPPORTUNITIES Closer to investment decisions with combined contract value for Vow of EUR 120 million End-of-life tires Sewage plant FEED Caribbean Carbon Refinery® Test facility in Lakenheath Paid FEED study for a major Co-operation agreement with continues to qualify recovered
Slide 15: Financials
FINANCIALS
Slide 16: Segment information
SEGMENT INFORMATION NOK million 1H 24 1H 23 FY 23 INDUSTRIAL Share of total Revenues EBITDA before non-recurring 163.8 8.8 147.7 -0.5 364.5 -12.5 SOLUTIONS revenues 34% EBITDA margin (%) 5.4% -0.3% -3.4% Backlog 365 509 450 Revenues 219.1 214.1 375.5 MARITIME Share of total 45% EBITDA before non-rec
Slide 17: Income statement
INCOME STATEMENT NOK million 1H 2024 1H 2023 FY 2023 Comments Revenue 485.0 448.7 918.5 Revenue increased by 8.1% compared 149.9 172.8 232.1 with same period last year, mainly Gross profit driven by increased revenues in Gross margin % 30.9% 38.5% 25.3% Aftersales (+17.6%) and Industrials (+10.9%).
Slide 18: Balance sheet
BALANCE SHEET NOK million 30.06.24 31.12.23 Comments Intangible assets and goodwill 611.4 588.1 Increase in intangible assets relate to Accounts receivable 202.2 241.0 investments in new technology and currency effects Contracts in progress 305.2 270.3 Other assets 374.9 378.2 Decrease in net workin
Slide 19: Cash flow
CASH FLOW NOK million 1H 2024 1H 2023 FY 2023 Comments Cash and cash equivalents 57.5 42.5 42.5 Working capital release during Q2 2024 at start of period Investments for the first half of 2024 Net cash flow from operating amounted to NOK 29.5m, reduced 69.4 (15.2) (0.6) compared with historical leve
Slide 20: Concluding remarks: Delivering according to plan
CONCLUDING REMARKS DELIVERING ACCORDING TO PLAN Concrete actions taken to strengthen balance sheet and improve liquidity Has negotiated new banking agreement which will provide with improved covenant headroom to further strengthens Vow's financial stability Agreement is subject to a strengthening of
Slide 21: Believing in a future where industry is harmonized with nature
BELIEVING IN A FUTURE WHERE INDUSTRY IS HARMONIZED WITH NATURE