Slide 1: 2023 Q3 results
2023 Q3 results 26 October 2023 abl-group.com
Slide 2: Highlights, Financial review, Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by ABL Group ASA (the “Company” or “ABL Group”) 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, h
Slide 4: Q3 2023 Highlights
Q3 2023 Highlights • Revenue of USD 70.4m, up 60% compared to Q3 2022 (USD 44.1m) 67.9 70.4 • Growth primarily due to acquisition of AGR1 Revenue 44.1 • Organic revenue growth of 11%, primarily driven by OWC (+39% YoY) (USDm) • Adjusted EBIT of USD 6.8m (Q3 22: USD 4.0m) Q3'22 Q2'23 Q3'23 • Adjusted
Slide 5: Highlights
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 6: Segment overview
Segment overview ABL AGR OWC Longitude • MWS & other asset surveys • Wells & reservoir consulting • Renewables consulting • Marine ops engineering Key services • Marine operations support • Resource solutions • Owner’s engineering • Vessel & facility design • Marine casualty support • Software • Tec
Slide 7: Abbreviated segment revenues and EBIT
Abbreviated segment revenues and EBIT USD million Revenues Q3 22 Q2 23 Q3 23 • Revenue growth driven primarily by OWC (+39% YOY) and ABL 31.3 36.0 35.9 integration of Add Energy and AGR OWC 8.2 11.2 11.4 Longitude 2.8 3.2 3.5 • Quarter on quarter improvement in EBIT margin across all AGR 3.6 19.7 21
Slide 8: Abbreviated Financials: Income Statement
Abbreviated Financials : Income Statement USD million • Increase in revenue (+60% YoY), staff costs (+67%) and Abbreviated income statement Q3 22 Q3 23 other operating costs (+49%) primarily from acquisition of AGR in 2Q 2023 Total revenue 44.1 70.4 • Pro-forma combined1 YoY revenue growth (+11%) dr
Slide 9: Abbreviated Financials: Cash Flow
Abbreviated Financials : Cash Flow USD million • Increased working capital driven mainly by increased days Abbreviated cash flow Q3 22 Q3 23 sales outstanding in OWC • Increased FX charge in operating cash flow due to unrealised Profit (loss) before taxes 3.0 6.5 effects of movements in exchange rat
Slide 10: Abbreviated Financials: Balance Sheet
Abbreviated Financials : Balance Sheet USD million • Net cash1 increased to USD 14.9 million Abbreviated balance sheet Q2 23 Q3 23 • Working capital ratio down to 49% due to low working capital intensity of AGR, driving improved return on capital employed Cash and cash equivalents 26.4 25.9 • Underl
Slide 11: Declaring semi-annual dividend of NOK 0.35 per share to be paid in November
Declaring semi-annual dividend of NOK 0.35 per share to be paid in November Paid and proposed dividends (NOK/share) • Declaring dividend of NOK 0.35 per share, corresponding to approximately USD 3.9 million 0.35 0.35 • The dividend was resolved and declared in accordance with the authorisation grant
Slide 12: Operations and outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Operations and outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 13: High organic staff growth, accelerated by AGR acquisition
High organic staff growth, accelerated by AGR acquisition Staff level development1 2 000 40% • 1,569 average number of employees in quarter represents 1% growth from Q2 2023 1 000 20% • 3% increase in permanent staff • Freelancer share of 32%, down from 34% in Q1 0 0% • Slight reduction mainly due t
Slide 14: Diversified revenue base across sectors and regions
Diversified revenue base across sectors and regions Market sector revenue LTM pro-forma combined1 Segment revenue LTM pro-forma combined1,2 Maritime Longitude 12% 5% OWC 14% Renewables 21% 267.1 267.1 ABL 49% USDm USDm Oil&Gas 67% AGR 32% 14 Note: Market sector revenue based on management accounts (
Slide 15: Offshore wind market: Cost inflation impacting short-term demand
RENEWABLES Offshore wind market: Cost inflation impacting short-term demand Offshore wind projects by installation year (GW), ex China1 Comments 2022 report 2023 report • Inflation and interest rates impacting sector 38.9 34.1 26.7 • Project postponements, specifically on projects with 22.9 39.2 off
Slide 16: O&G investments on the rise, jackup activity highest level since 2015
OIL & GAS O&G investments on the rise, jackup activity highest level since 2015 E&P capex growth Rigs under contract 40% 440 280 420 260 30% 400 240 20% 17% 380 220 10% # Jackups 360 200 # Floaters 0% 340 180 320 160 -10% 300 140 -20% 280 120 -30% 260 100 -40% 240 80 2023e 2003 2004 2005 2006 2007 2
Slide 17: Summary and outlook
Summary and outlook • All time high quarterly revenues and EBIT • OWC continues to grow rapidly, 39% compared to same quarter last year • Improved margins in all segments compared to Q2 • Robust market outlook despite near term slowing in offshore wind growth • Renewables: Reduced short term growth
Slide 18: Appendix
Appendix © 2012-2023 ABL Group
Slide 19: Revenue base increased 600% since 2018
Revenue base increased 600% since 2018 Revenue (USDm) and adjusted EBIT margin development, ABL Group Key acquisitions • 2014: OWC 9% • 2019: Braemar Technical 267 Services (BTS), forming AqualisBraemar 7% 8% 6% 6% • 2020: LOC Group, forming ABL 6% 168 Group 151 • 2021: East Point Geo, OSD-IMT • 202
Slide 20: Our Markets
Our Markets 20 ABLGroup
Slide 21: The ABL Group family
The ABL Group family ABL Group ASA – a global brand family combining the deepest pool of expertise across energy, marine, engineering and digital solutions to drive safety and sustainability in energy and oceans throughout the life-cycle of a project of asset. The Energy & Marine Consultants. The En
Slide 22: ABL Group Service Portfolio
ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Well engineering, Surveys, inspections & Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence management & servicing audits • Renewables mana
Slide 23: Global partner, local expert
Global partner, local expert 1,569 Employees1 66 Offices 40 Countries Global footprint provides clients with local expertise and swift response 23 1 Includes freelancers on FTE basis. Calculated as average during 3Q 2023.
Slide 24: Pro-forma combined financials (simplified)
Pro-forma combined financials (simplified) USD millions Revenue Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q/Q growth Y/Y growth ABL Group, as reported 44.1 42.8 45.2 67.9 70.4 3.6% 59.6% AGR (consolidated 2Q23) 19.1 21.3 19.5 Pro-forma combined (simplified) 63.2 64.0 64.7 67.9 70.4 3.6% 11.4% Adjusted EBIT Q3 2
Slide 25: Billing ratio development
Billing ratio development Billing ratio1 – Technical staff Comments • Freelancers are ~100% 79% utilisation 78% 77% 78% 77% 75% 75% • Increased billing ratio 74% 73% including freelancers due to increased freelancer share after AGR integration 69% 69% 69% 68% 68% • AGR consolidated from Q2 67% 66% 6
Slide 26: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into financial highlights for the quarter of the the operations, financ
Slide 27: 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
Slide 28: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Restructuring and integration costs 29 14 362 - - 19 170 189 - - 172 Other special items (incl. share-based expenses) 531 485 1 475 456 209 504 603 1 773 393 404 607 Transaction
Slide 29: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Operating profit (loss) (EBIT) 1 319 1 916 7 375 2 806 3 868 3 329 2 512 12 514 2 708 4 397 5 512 Depreciation, amortisation and impairment 820 998 3 790 810 758 939 836 3 342
Slide 30: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Cash and cash equivalents 23 212 19 815 19 815 21 212 18 711 29 267 30 974 30 974 28 819 26 390 25 890 Less: Interest bearing bank borrowings 12 504 11 661 11 661 10 817 9 997 14 166 13 337
Slide 31: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Revenue 37 986 37 797 150 748 39 643 41 367 44 100 42 788 167 897 45 177 67 938 70 402 Total revenue 37 986 37 797 150 748 39 643 41 367 44 100 42 788 167 89
Slide 32: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 Profit (loss) before taxes 495 2 408 6 184 3 151 2 847 3 026 1 629 10 654 326 3 563 6 476 Non-cash adjustment to reconcile profit before tax to cash flo
Slide 33: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Property, plant and equipment 1 169 1 137 1 345 1 787 2 993 2 101 2 163 2 329 2 209 Right-of-use assets 2 938 3 629 3 619 8 046 7 954 7 904 7 639 8 236 7 302 Go
Slide 34: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 ABL 30 953 31 062 125 047 31 299 32 002 31 253 30 803 125 357 32 370 36 016 35 912 OWC 6 665 6 759 24 110 7 199 7 587 8 191 7 762 30 739 8 751 11 184 11 353 Longitude 2 212
Slide 35: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Q1 23 Q2 23 Q3 23 ABL 28 785 28 742 28 742 30 462 30 730 24 880 24 902 24 902 25 564 27 560 28 029 OWC 2 779 3 004 3 004 3 234 3 896 3 512 3 192 3 192 4 2
Slide 36: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 12.1% 2 HOLMEN SPESIALFOND 10 450 000 8.5% 3 DNB BANK ASA 7 637 835 6.2% 4 BJØRN STRAY 6 217 743 5.0% 5 RGA ENERGY HOLDINGS AS 6 055 556 4.9% 6 NORDEA BANK ABP, FIL 6 055 555 4.9% 7 MELESIO INVEST AS
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