Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q3 2022 Earnings Presentation
22 slides from Expro's earnings presentation, Nov 3, 2022
Slide 1: Q3 2022 Key Highlights
Q3 | 2022 Key Highlights NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Growing Shareholder Value
Growing Shareholder Value Leading & Through-Cycle Compelling Accelerating Differentiated Portfolio Resiliency Rate-of-Change Story Cash Flow Significant upside Driven by breadth Improving business mix Debt free balance sheet from International & of services and Recently deployed and free cash flow u
Slide 4: Q3 2022 Expro Highlights
Q3 2022 Expro Highlights Q3 revenue increased 7% sequentially and 7% year-over-year on a proforma basis Adjusted EBITDA for the quarter was $48m (14% of revenue). Excluding $17m and $4m, respectively, of start-up and commissioning costs on a large subsea project in APAC, Adjusted EBITDA was $65m (19
Slide 5: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well North & Latin America Intervention (NLA) & Integrity $135 $49 Asia Pacific Subsea (APAC) Q3 2022 1 Well Access Q3 2022 1 Well $50 $38 Revenue: Construction Revenue: $129 by Geographic by Area of Middle East Market Capability North Africa $334m $334m (MEN
Slide 6: Q3 2022 Regional Highlights
Q3 2022 Regional Highlights Middle East & North Africa Tailored a solution for client’s wet gas Middle East & North Africa Mercury removal solution and multiphase measurement needs and executed mobilization time fit clients’ technical first field deployment of Expro combined needs and resulted in th
Slide 7: Customer and Technology Highlights
Customer and Technology Highlights iTONG™ World Oil award for HSE / Innovation funding awarded Enhanced digital technology Success in 18-well plug and Delivering fit for purpose value Sustainable technology for two carbon-reduction completed safe, low-cost TRS abandonment operation to rig operations
Slide 8: Merger Synergies: Driving Margin Expansion
Merger Synergies: Driving Margin Expansion COST SYNERGIES REVENUE SYNERGIES 1 ~$55 million of annual run-rate $80-$100M in merger Complimentary capabilities, cost synergies within 12 months synergies expected operating footprints and following close, ramping up to within 24-36 months customer relati
Slide 9: Ahead of Plan on Integration and Synergies Capture
Ahead of Plan on Integration and Synergies Capture TOTAL EXPECTED COST SYNERGIES ($m) Exceeded first year targeted cost savings of $55m by +10% Combined support EXPECTED IN FIRST costs declined from 24-36 MONTHS 31% of revenue in Q4 2020 SAVINGS IN FIRST to 20% in Q3 2022 OF FIRST-YEAR TARGET 1 2 MO
Slide 10: Sustainable Energy Solutions for Expro and its Customers
Sustainable Energy Solutions for Expro and its Customers Emissions Management Environmental Efficiencies Annular Well Integrity Emissions Management SUSTAINABLE ENERGY SOLUTIONS WELL FLOW MANAGEMENT WELL INTERVENTION & INTEGRITY WELL INTERVENTION & INTEGRITY Customer reduced Green Carbon-efficient s
Slide 11: Our Inaugural ESG Report
Our Inaugural ESG Report: A Material Step Up In ESG Ratings One of most important organizations OVER THE PAST YEAR that evaluates companies’ ESG Only 2% programs has upgraded Expro’s sustainability rating two full levels from Helping to address the OF COVERED COMPANIES IMPROVED TWO LEVELS below aver
Slide 12: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 35% $50 35% 30% 30% $45 $45 30% 26% 30% $40 $40 22% 25% 23% 23% $35 21% 21% 21% $35 21% 25% 19% 19% $30 20% $30 18% 18% 18% 16% 15% 15% 15% 17% 16% 20% $25 15% 14% $25 15% 15% 14% 12% 11% 15% 13% $20
Slide 13: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 42% 45% 44% 42% 43% 44% 50% 41% 42% 41% 42% 41% 42% $60 38% 40% 37% 40% $50 $374 $40 30% $348 $342 $330 $334 $326 $30 20% $313 $314 $296 $20 $139 $284 $280 10% $10 $59 $66 $63 $58 $47 $34 $32 $39 $39 $
Slide 14: Q4 2022 Outlook
Q4 2022 We expect revenue in the fourth quarter of 2022 to approach pre-pandemic levels of approximately $325-$350 million We expect Adjusted EBITDA margin of approximately 20% of consolidated revenue in line with previous guidance Copyright 2022 Expro. All rights reserved. 14
Slide 15: Appendix: Our ESG report
Appendix: To learn even more about Expro, check out these additional places to get in touch with us. Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Subscribe to our channel www.expro.com 15
Slide 16: EXPRO at a Glance: We Are Well Experts
EXPRO at a Glance: We Are “Well Experts” OUR REVENUE A DIVERSE SET OF GLOBAL CAPABILITIES IN: COUNTRIES EMPLOYEES WELL MANAGEMENT WELL CONSTRUCTION INTERNATIONAL U.S. LAND OFFSHORE Well Flow Management Subsea Well Access Well Intervention & Integrity Asia Pacific STRONG CASH FLOW OUTLOOK DEBT FREE B
Slide 17: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m) Well Management Well Construction Expro Frank’s XPRO Revenue up Legacy Adjusted 34% since EBITDA up Q4 2020 85% since $374 Q4 20203 $348 $342 $334 $326 $330 $313 $314 $296 $51 $51 $51 $139 $284 $280 $48 $45 $45 $45 $156 $139 $1
Slide 18: Historical Revenue by Geographical Market and Product Line
Historical Revenue by Geographical Market and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention & Integrity $374 $374 $348 $342 $348 $342 $56 $330 $334 $42 $330 $334 $326 $326 $38 $313 $314 $40
Slide 19: Historical Support Costs
Historical Support Costs Support Costs ($m) Trailing Twelve Months ($m) Research, engineering and development Research, engineering and development Product Line and central costs Chart Title Product Line and central costs Geography-based support costs Aggregate support Geography-based support costs
Slide 20: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s XPRO Expro Frank’s XPRO Legacy Legacy $73 $40 $40 $66 $37 $37 $33 $33 $27 $10 $10 $18 $52 $31 $10 $10 $44 $28 $41 $8 $9 $5 $32 $26 $22 $28 $21 $22 $20 $21 $48 $46 $
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Three Months Ended TTM 2022 ($ in millions) 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sept-22 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $
Slide 22: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 1,224 Cost of revenue, exclu