Slide 1: AqualisBraemar ASA 2019 Q4 results
AqualisBraemar ASA 2019 Q4 results February 27, 2020 aqualisbraemar.com
Slide 2: Disclaimer
Disclaimer ▪ This Presentation has been produced by AqualisBraemar ASA (the “Company” or “Aqualis ”) 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 confidentia
Slide 3: Highlights, Financial review, Outlook
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 3
Slide 4: 2019 – A defining year for AqualisBraemar
2019 – A defining year for AqualisBraemar • Successful acquisition of Braemar Technical Services (BTS) – Fulfilled long term strategic goal to expand into insurance services – Strengthened client offering and market position – Positive feedback from staff, clients and the markets – Estimated cost sy
Slide 5: Q4 2019 Highlights
Q4 2019 Highlights Reported numbers1 Pro-forma combined2 • Revenues of USD 18.8 million, up 4% vs Q3 19 19.6 • Operating profit (EBIT) of USD 0.4 million 18.0 18.8 • Billing ratio of 69% Revenue 9.8 (USDm) • Quarterly improvement driven primarily by offshore activity in Middle East and Americas Q4'1
Slide 6: AqualisBraemar business model
AqualisBraemar business model High end consultancy services to the global energy, shipping and insurance industries Core services Project consulting Accident prevention Incident management 6
Slide 7: AqualisBraemar business streams
AqualisBraemar business streams Renewables Offshore Marine Adjusting Independent engineering Engineering and Worldwide emergency Loss adjusting and dispute and consultancy services to consultancy services to the incident response and resolution to the onshore offshore wind industry offshore oil and
Slide 8: Global footprint represents unique value to clients
Global footprint represents unique value to clients 423 Employees1 48 Locations 31 Countries Global footprint provides clients with local expertise and swift response 1 Includes subcontractors on 100% utilisation basis. Calculated as an average during Q4 2019 8 Map shows partnerships and exclusive s
Slide 9: Diversified across regions and services
Diversified across regions and services Business stream revenue 2019 Segment revenue 2019 Adjusting Renewables 12% 13% Asia Pacific Renewables 28% 13% Offshore 49% Europe 15% 73.4 73.4 USDm USDm Americas Marine 17% 26% Middle East 27% 9 Note: Proforma combined figures for 2019. No adjustment for int
Slide 10: Global growth in offshore wind brings new developers
RENEWABLES Global growth in offshore wind brings new developers Project pipeline (GW) – Ex China1 Market share, Top 3 developers2 18 16 68% 14 52% 12 48% 43% 46% 10 39% 8 30% 28% 6 4 2 0 2013 2015 2017 2019 2021 2023 2025 2013 2014 2015 2016 2017 2018 2019 2020 Europe Asia ex China North America • R
Slide 11: Project: Inspection of Floating Lidar System
RENEWABLES Project: Inspection of Floating Lidar System • In Q4, we completed an inspection and In 2019, OWC… typhoon-readiness assessment of a Floating Lidar System ...worked on • Our findings helped client to gain confidence and reduce the risk profile 27 farms associated with planned deployment w
Slide 12: OWC secures new project work in Vietnam
RENEWABLES OWC secures new project work in Vietnam • New contract with Mainstream Phu Cuong Company Limited in Vietnam to assist with the drafting of Employer’s Requirements for the Mainstream Phu Cuong Offshore Wind Project • Reinforces our commitment to providing services to the rapidly growing Vi
Slide 13: Offshore capex and jackup activity back to growth
OFFSHORE Offshore capex and jackup activity back to growth E&P capex growth Rigs under contract 30% 450 400 20% 350 10% 300 0% 250 # Units 200 -10% 150 -20% 100 -30% 50 -40% - Onshore Offshore Floaters Jackups 13 Source: IHS Markit, SB1 Markets
Slide 14: Project: MWS for decommissioning in Thailand
OFFSHORE Project: MWS for decommissioning in Thailand • In Q4, we were contracted by COOEC as MWS for In 2019, Offshore… decommissioning of WPP & WHP (Topside and Full Jacket Removal) at SKL-C Field, Gulf of Thailand, Thailand ...performed • This was the first ever jacket removal in Gulf of Thailand
Slide 15: Growth in Technical Due Diligence space
MARINE Growth in Technical Due Diligence space • In 2019, AqualisBraemar Marine won 6 new contracts for In 2019, Marine… Technical Due Diligence services - assisting financial institutions and shipowners with mergers, acquisitions and refinancing ...received • Various vessel types including passenge
Slide 16: Project: Typhoon damage to platforms offshore Shanghai
ADJUSTING Project: Typhoon damage to platforms offshore Shanghai • In Q3-Q4 2019, we reviewed In 2019, Adjusting… damage and adjusted damage claims arising from storm damages to 16 platforms in the East China Sea due to Typhoon …received Ling Ling • We attended on behalf of 275 CNOOC’s underwriters,
Slide 17: Environmental, Social & Governance
Environmental, Social & Governance • In Q1 2020 we initiated a comprehensive process to establish best practice ESG reporting and instil sustainability into the culture and forward strategy of the group – AqualisBraemar2030 AqualisBraemar2030 • Implement ESG reporting anchored in the principles of t
Slide 18: Order backlog development
Order backlog development Order backlog1 Highlights Q4 2019 16 • Order backlog at USD 13.8 million, up 9% from Q3 2019 14 • Weighted pipeline of opportunities 12 significantly increased from last quarter • Current focus is on supporting clients on 10 day-to-day service operations - typically USDm ca
Slide 19: Staff level development
Staff level development Staff level development1 Highlights Q4 2019 450 • Average staff levels in Q4 2019 slightly increased due to higher activity driving 400 use of subcontractors 350 • Increased share of subcontractors in Q4 300 2019 - the group aims to further increase the subcontractor share to
Slide 20: Billing ratio development
Billing ratio development - Total technical staff (including subcontractors), billing ratio1 % Billing ratio Gliding 3m average billing ratio 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 1 Billing ratio for technical staff including subcontractors. For offshore oil & gas and offshore renewables: It e
Slide 21: Financial review
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 21
Slide 22: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue, pro-forma combined (USDm) Adj EBIT1, as reported (USDm) 1.0 10% 20.0 19.6 20 19.2 18.7 18.8 0.8 8% 18.3 18.0 18.0 17.4 0.6 6% 0.4 4% 16 0.2 2% 0.0 0% 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 12 Adjusted EBIT (left axis) Adjusted EBIT margin (%) 8 Adj EBIT1, pro
Slide 23: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 7.0 0.6 6.0 0.5 5.0 0.4 4.0 0.3 3.0 0.2 2.0 0.1 1.0 0.0 0.0 -1.0 -0.1 -2.0 -0.2 -3.0 -0.3 -4.0 -0.4 4Q18 3Q19 4Q19 4Q18 3Q19 4Q19 • Quarterly improvement in revenue and EBIT primarily driven by Middle East and Americas •
Slide 24: Income Statement
Income Statement USD thousands Consolidated income statement Q4 19 Q4 18 FY 19 FY 18 • Revenues for Q4 2019 up 91% Revenues 18 785 9 828 54 792 36 185 from Q4 2018 Total revenues 18 785 9 828 54 792 36 185 – Growth related largely to the Payroll and payroll related expenses (9 801) (4 043) (28 536)
Slide 25: Cash flow and financial position
Cash flow and financial position Highlights Q4 2019 Working capital1 (% of quarterly revenue) • Solid financial position with USD 10.9 million in cash 150% 146% 142% 140% • Capitalized lease of USD 2.4 million • Operational cash flow of USD 0.5 million 125% in the quarter • Working capital of USD 25
Slide 26: Proposing dividend of NOK 0.2 per share
Proposing dividend of NOK 0.2 per share • Proposing dividend of NOK 0.2 per share, corresponding to approx. USD 1.5 million – During the initial AqualisBraemar integration phase, the company has maintained a larger liquidity buffer than normal. As the integration is on track and progressing well, th
Slide 27: AqualisBraemar Group targets
AqualisBraemar Group targets • Financial targets over a business cycle – Organic revenue growth of 5 percent – EBITA margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparability) – Dividend policy where the dividend over time corresponds to approximately 50-70 percen
Slide 28: Outlook
1. Highlights David Wells CEO 2. Financial review Kim Boman CFO 3. Outlook David Wells CEO 28
Slide 29: Summary and outlook
Summary and outlook • AqualisBraemar integration is on track and progressing well • Positive market outlook – Rapid growth and increasing globalisation in the offshore wind market – Offshore O&G markets improving from low levels – jackup activity leading the recovery • Positive start to 2020 across
Slide 30: Appendix
Appendix 30
Slide 31: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Transaction costs related to acquisition - - - - - - - 384 715 30 - 1 129 Restructuring and integration costs - - - - - - - - 48 475 5 528 Share of net profit (loss) from
Slide 32: General
General Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated AqualisBraemar discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced financial highlights for the quarter of the insight into the operations, f
Slide 33: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Operating profit (loss) (EBIT) (6 383) (5 628) 197 1 032 594 860 2 684 (248) (284) (245) 444 (332) Depreciation, amortisation and impairment 3 963 4 061 33 34 30 32 129 3
Slide 34: APMs and Key Figures
APMs and Key Figures USD thousands Working capital Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Trade receivables 7 886 7 886 7 080 7 663 7 663 8 289 8 289 6 901 20 814 18 848 19 628 19 628 Contract assets 1 402 1 402 2 201 1 800 2 013 2 297 2 297 1 910 12 288 13 518 12 18
Slide 35: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Revenue 8 948 31 134 8 159 9 595 8 603 9 828 36 185 8 182 9 869 17 957 18 785 54 792 Total revenue 8 948 31 134 8 159 9 595 8 603 9 828 36 185 8 182 9
Slide 36: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 17 Q1 18 Q2 18 Q3 18 Q4 18 Q1 19 Q2 19 Q3 19 Q4 19 ASSETS Property, plant and equipment 160 153 180 167 141 223 2 936 2 675 2 935 Intangible assets 13 063 13 234 12 908 12 867 12 864 12 921 12 901 12 733 12 973
Slide 37: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Profit (loss) before taxes (6 234) (6 333) (182) 1 427 560 1 073 2 878 (368) 11 116 144 (992) 9 900 Non-cash adjustment to reconcile profit before
Slide 38: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Middle East 3 702 12 505 3 984 5 029 3 855 4 928 17 796 4 164 4 483 5 221 6 087 19 955 Asia Pacific 2 262 7 764 1 595 1 858 1 918 1 987 7 358 1 427 1 987 5 909 5 636
Slide 39: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q4 17 FY 17 Q1 18 Q2 18 Q3 18 Q4 18 FY 18 Q1 19 Q2 19 Q3 19 Q4 19 FY 19 Middle East 3 400 3 400 3 413 4 099 3 865 4 824 4 824 4 069 5 450 5 102 5 668 5 668 Asia Pacific 1 897 1 897 1 271 1 456 1 845 1 6
Slide 40: Historical revenues and adjusted EBIT, pro-forma combined
Historical revenues and adjusted EBIT, pro-forma combined USD millions Aqualis 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 Revenues 7.3 8.9 8.2 9.6 8.6 9.8 8.2 9.9 Adjusted EBIT 0.2 0.6 0.2 0.7 0.6 0.9 0.1 0.5 BTS 3q17 4q17 1q18 2q18 3q18 4q18 1q19 2q19 Revenues 10.2 9.8 10.2 10.4 9.4 9.8 9.2 9.4 1 Adju
Slide 41: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 BRAEMAR SHIPPING SERVICES PLC 19 240 621 27.3% 2 GROSS MANAGEMENT AS 10 024 777 14.2% 3 BJØRN STRAY 3 000 000 4.3% 4 HOLMEN SPESIALFOND 2 615 834 3.7% 5 MP PENSJON PK 1 801 128 2.6% 6 OMA INVEST AS 1 694 000 2.4% 7 LGT BANK AG 1 5
Slide 42: aqualisbraemar.com
23 AQUALIS me? BRAEMAR aqualisbraemar.com