Vow Asa · OSL:VOW
Vow Asa — Q1 2022 Earnings Presentation
27 slides from Vow Asa's earnings presentation, May 5, 2022
Slide 1: Q1 2022 Trading Update
Q1 2022 TRADING UPDATE Henrik Badin, CEO Vow ASA Oslo, 5 May 2022
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: About Us
ABOUT US Provider of world leading technologies to eliminate pollution, enhance circular economy and mitigate climate change Offering patented unique solutions that turn waste and biomass into Our brands CO2 neutral energy, decarbonised energy, low-carbon fuels and biocarbon Proven ability to contin
Slide 4: Well established and with proven delivery model
WELL ESTABLISHED AND WITH PROVEN DELIVERY MODEL 117 4450+ 144 Net-zero ambition by 2025 patents systems systems in backlog to be delivered 209 tCO2e in within 17 families of patents installed1 over the next 3-5 years Scope 1 and 2 45 220 0 25% proprietary employees gender equality technologies with
Slide 5: The core of our value proposition
THE CORE OF OUR VALUE PROPOSITION We aspire to deliver excellence – over and over again Knowing your customer and understanding their challenge Always committed Understanding how and available to technology and deliver and support innovative solutions 100% uptime can help Delivering complex technolo
Slide 6: Financial and Operational Headlines
FINANCIAL AND OPERATIONAL HEADLINES
Slide 7: Key Takeaways
KEY TAKEAWAYS Backlog Total order backlog increased 31% year-over-year to an estimated 2.1 billion at the time of reporting 1 271 +31%2 million y-o-y Revenue continues to rise, Q1 22 nearly doubled year-over-year to +838 m options 183 million, supported by strong order backlog (C.H. Evensen not incl
Slide 8: Key Financials | Group
KEY FINANCIALS | GROUP By quarter 183 849 826 838 Options 23,6 155 778 76 665 52 109 1291 98 15,1 93 17 20 21 1284 1271 Landbased 17 11 22 10,2 10,1 12.9% Backlog Aftersales 7 14 8,1 1061 81 83 86 11.0% 969 Cruise projects 69 62 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q1 21 Q2 21
Slide 9: Q1: Projects | Cruise
Q1: PROJECTS | CRUISE Floating ceremony of the first large cruise ship built by in China by Shanghai Waigaoqiao Shipbuilding and Fincantieri in a joint venture, featuring Scanship inside Solid progress in revenues and profits. Revenues increased 26% and EBITDA improved 17% year-over-year Strong perf
Slide 10: Cruise is back
CRUISE IS BACK Great momentum at Seatrade Cruise Global as operators see all their fleets returning to sea by end of June this year Extensive fleet renewal programmes being planned, newbuilds and retrofits, to meet customers and investors’ expectations for green shipping Scanship secured 1+1 contrac
Slide 11: Cruise operators actively engaged in fleet renewal
CRUISE OPERATORS ACTIVELY ENGAGED IN FLEET RENEWAL High activity and Vow well positioned and with order book far into 2025/26 Current number Scanship orders Year of of vessels1 in Scanship orders advanced vessel cruise industry for waste wastewater delivery orderbook, management purification Vow sub
Slide 12: Q1: Aftersales | Cruise
Q1: AFTERSALES | CRUISE Cruise operations continued to resume as Covid-19 restrictions ease in key markets Revenues tripled year-over-year from very low levels. Still at around half of pre-covid level With more newbuilds coming into service, market for Aftersales is growing. Will over time likely su
Slide 13: As ships take to sea, demand for chemicals, spares and service rebound
AS SHIPS TAKE TO SEA, DEMAND FOR CHEMICALS, SPARES AND SERVICE REBOUND Number of cruise ships in service At end of period 347 Covid-19 hit Aftersales hard from Q2 2020 300 nn Ships with Scanship Coming out of Q1 2022, activity is climbing steeply equipment inside 239 towards a full fleet deployment
Slide 14: Q1: Landbased
Q1: LANDBASED Significant growth in revenues and profits, with Vow Green Metal’s Follum project representing a large share Production of equipment for Follum continues as planned for delivery later this year Ongoing studies to qualify pyrolysis gas for European gas grid, and biocoal as replacement f
Slide 15: The C.H. Evensen Acquisition
THE C.H. EVENSEN ACQUISITION
Slide 16: CHE Acquisition
CHE ACQUISITION Further strengthening foothold and capacities in landbased industry verticals C.H. Evensen has 40 employees Culturally well aligned with rest of Vow Pre-audit 57 million in total sales for 2021 EBITDA margin of 10.4% Purchased for 50 million, settled in cash and 25 million in seller’
Slide 17: Large and loyal customer base
LARGE AND LOYAL CUSTOMER BASE C.H. Evensen established in 1937, ranking as a leader in its field Trusted partner and supplier of technology for high- temperature industrial processes, with increasing focus on energy efficiency and non-fossil solutions Installed base of more than 4,200 systems worldw
Slide 18: Complementary technologies
COMPLEMENTARY TECHNOLOGIES Microwave assisted Biogreen C.H. Evensen reactor CHE + Biogreen pyrolysis (MAP) Well suited for processing of For production of sophisticated For processing large volumes of Two-step process with several organic waste and production of and advanced biocarbon, biomass, such
Slide 19: Introducing the CHE reactor to meet increased demand
INTRODUCING THE CHE REACTOR TO MEET INCREASED DEMAND With growing demand from industry customers to decarbonise, recycle carbon, and to secure access to reliable and locally produced CO2 neutral energy, Vow decided to start building a large-scale pyrolysis reactor for production of biocarbon and syn
Slide 20: Market Trends and Outlook
MARKET TRENDS AND OUTLOOK
Slide 21: What drives demand for our technologies
WHAT DRIVES DEMAND FOR OUR TECHNOLOGIES Industry Economic push for realities decarbonising Photo: AP EU carbon emission cost A new Government 2017-2022 world order Circular policies and economy Energy security regulation Self sufficiency 21
Slide 22: Trends reflected in rising costs and carbon tax
FOR OUR CUSTOMERS THESE TRENDS ARE REFLECTED IN RISING COSTS AND CARBON TAX Cost of CO2 emissions Price for metallurgical coking coal Price for natural gas in EU EU CO2 emission cost (ETS) 2016- Price for met coke 65-66% China included EU CO2 Price for Dutch TTF natural gas. Five times higher 2022,
Slide 23: Industry use more than 1,000 TWh natural gas today
INDUSTRY USE MORE THAN 1,000 TWH NATURAL GAS TODAY Pyrolysis gas is becoming available as a solution for industry seeking self- sufficiency and carbon neutrality in energy supplies Source: Eurostat - Supply, transformation and consumption of gas, EU 2019, 279 kWh/GJ 23
Slide 24: Unlocking a new market for pyrogas
UNLOCKING A NEW MARKET FOR PYROGAS Qualifying pyrogas for the European gas grid, helping countries to decarbonise and become more self-sufficient Overview of pyrogasification for injection in France More than ten commercial projects and gas production demonstrators in France have already been made p
Slide 25: The 50,000-tonnes biocarbon project
THE 50,000-TONNES BIOCARBON PROJECT Equivalent to 5x initial production capacity at Follum project and EUR 85-100 million worth of Vow technology A large-scale project in the circular economy, feeding a leading European non-ferrous metal producer with biocarbon 50,000 tonnes Sustainable CO2 neutral
Slide 26: Q1 Summary
Q1 SUMMARY All time high financial results • Revenue nearly doubled year-over-year to 183 million • EBITDA more than doubled to 23.6 million, proving efficient delivery model Pyrolysis emerging as preferred solution for industrial scale production of renewable gas for grid and recycling of carbon ma
Slide 27: Q1 2022 Trading Update
Q1 2022 TRADING UPDATE