Slide 1: Trading Update Third Quarter 2021
TRADING UPDATE THIRD QUARTER 2021 Henrik Badin, CEO Vow ASA Oslo, 27 October 2021
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: Financial and Operational Headlines
FINANCIAL AND OPERATIONAL HEADLINES
Slide 5: Key Takeaways
KEY TAKEAWAYS Backlog Total order backlog including options leaped to an estimated record high 2.1 billion at time of reporting, including contracts worth 360 million in 1 284 +27%2 cruise and 215 million in Landbased awarded in Q3 and Q4 million y-o-y +849 m options YTD revenues were 299 million in
Slide 6: Key Financials | Group
KEY FINANCIALS | GROUP 849 Options 457 460 778 436 619 413 413 665 90 97 584 90 Landbased 83 83 78 53 29 32 41 Aftersales 1284 Backlog 1082 1061 309 318 Projects 952 969 289 298 290 Cruise 10% 10% 10% 10% 10% Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2020 2020 2021 2021 2021 2020 2020 2021 2021 2
Slide 7: Projects | Cruise
PROJECTS | CRUISE Norwegian Prima is a Project Leonardo class cruise ship operated by Norwegian Cruise Line and the first in a series of six being equipped with Scanship clean tech systems. Revenues in Q3 and YTD in 2021 slightly reduced due to phasing of project delivery schedules Proven and effici
Slide 8: Aftersales | Cruise
AFTERSALES | CRUISE Cruise operations continued to resume as Covid-19 restrictions were eased in key markets, driving demand for chemicals, spare parts and service YTD revenues was 32 million in 2021, around one third of normal level before the pandemic With more newbuilds coming into service, marke
Slide 9: Landbased
LANDBASED Revenues and profit reflect continued high activity on customer projects and with new industry partners 215 million contract with Vow Green Metals confirmed for delivery in 2022 Continued to invest in people and building capacity. Workforce increased 31% since year-end 2019 Blue-chip indus
Slide 10: Strategy and Outlook
STRATEGY AND OUTLOOK
Slide 11: High Activity in Cruise Newbuilds …
HIGH ACTIVITY IN CRUISE NEWBUILDS … 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 Cruise operators are actively delivery orderbook, management purification engaged in
Slide 12: … and in Retrofits
… AND IN RETROFITS Cruise operators report plans for retrofitting around 30 ships in the next 1-2 years Environmental groups actively engage and inspire cruise industry to ‘go clean’ International Maritime Organisation (IMO) is discussing additional measures which already has resulted in increased d
Slide 13: Increased Market for Aftersales
INCREASED MARKET FOR AFTERSALES Aftersales revenues and EBITDA through the pandemic In 2019, Aftersales reported 126 million (in NOK million) 205 revenues and 22.5 million EBITDA 200 30 Covid-19 hit Aftersales hard from Q2 2020 150 25 Revenues EBITDA Business is gradually coming back as 20 74 100 cr
Slide 14: Building Landbased Step by Step
BUILDING LANDBASED STEP BY STEP Select ongoing projects and status Project Description Status Philip Morris Climate neutral gas for industry Equipment delivered. Team on site for International decarbonization commissioning and process tuning Biochar from garden waste for soil Equipment production un
Slide 15: PMI Going Green
PMI GOING GREEN See movie on YouTube https://youtu.be/KSGt8Jp2yUM With Biogreen from Vow inside In 2021 Phillip Morris International’s Neuchâtel plant in Switzerland became the second plant to reach the group’s carbon neutrality target Biogreen pyrolysis equipment is a core component in the circular
Slide 16: Vow's Scope at Follum Biocarbon Plant
VOW’S SCOPE AT FOLLUM BIOCARBON PLANT Process flow diagram of Follum plant Pyro- A 215 million purchase order scrubbers confirmed with Vow Green Metals in Biogreen October 2021, the largest contract trains so far in Landbased Synfuel Includes all core technology and heat components and mechanical sy
Slide 17: Elkem Raises Ambitions
ELKEM RAISES AMBITIONS In October 2021, Elkem reconfirmed its commitment to reducing emissions towards net zero, and raised its target for use of biocarbon by 2030 Original target 40% biocarbon in Norway = 140-150K tonnes per year New target 50% biocarbon worldwide = ca 400K tonnes per year “To redu
Slide 18: A Glimpse into the Future
A GLIMPSE INTO THE FUTURE Based on expected demand for biocarbon as reduction agent in metallurgical industry, analysts suggest that Vow Green Metals would need to follow an aggressive growth strategy to meet demand This would convert to a significant revenue stream for Vow as supplier of processing
Slide 19: Robust and Ready
ROBUST AND READY Order backlog of 2.1 billion at end of October including options, providing good visibility and revenues well into 2025/26 Cruise industry is bouncing back. Contracts for newbuilds and retrofits confirm cruise operators’ commitment to renew their fleets, and demand for aftersales is
Slide 20: Thank You for Your Attention
THANK YOU FOR YOUR ATTENTION Vow ASA | Lysaker Torg 12 | 1366 Lysaker | Norway | www.vowasa.com