Slide 1: Archer Q2 2023 earnings presentation
Dag Skindlo Espen Joranger
Slide 2: Disclaimer - forward looking statements
A 2 2023 Disclaimer - forward looking statements Cautionary Statement Regarding Forward-Looking Statements In addition to historical information, this presentation contains statements relating to our future business and/or results. These statements include certain projections and business trends tha
Slide 3: Q2 Highlights
Q2 Highlights e Revenue of $295 million; up 20% YOY e Adjusted EBITDA of $31.9 million; up 52% YOY e EBITDA of $30.0 million; up 54% YOY e EBIT-margin of 6.2%, totaling $18.4 million e Ontrack to meet upper range of our financial guidance for 2023 e Secured a five-year $50 million coiled tubing cont
Slide 4: Archer awarded $165 million Plug & Abandonment project
A Q2 2023 — Archer awarded $165 million Plug & Abandonment project Project award to solidify company growth projections + Awarded project with contract value of $165 million is incremental to current contract portfolio and business volume * Archer in tender process for similar projects and looking t
Slide 5: Bundled P&A Service with key partners
Bundled P&A Service with key partners 4-5 years contract Contract value $165 million More than 30 wells to be P&A Key collaboration with partners 5 ©Archer 2023
Slide 6: Europe Offshore Well P&A and Decommissioning
Europe Offshore Well P&A and Decommissioning Total Decommissioning commitments - by supply type 2 Hl Offshore SHE 28 HB Offshore Dv Decommissioning commitments - by selected service segment 4 3 z HB Downhole & Inter . IB Rigs & Equipmen 10 10.2014 0152019 202024 252029 No. Of Projects to be shut in
Slide 7: Well Services
A 02202 Well Services Financials Operations ¢ Revenue increased by 11% over the quarter, ending at * Continued growth in demand for our well services and positive $76.5 million impact from the inclusion of the acquired businesses * EBITDA increased by 59% from previous quarter, to $13.3 * Awarded a
Slide 8: Platform Operations
A 02202 Platform Operations Financials Operations ¢ Operational revenue increased by 4% over the quarter * Activity temporarily reduced in the quarter due to standby rates from increased activity in Brazil and maintenance stops in Norway * EBITDA of $9.5 million in the quarter is a 25% reduction ove
Slide 9: Land drilling
Land drilling Financials + Revenue increased by 10 % to $88.2 million compared with previous quarter * EBITDA of $9.0 million, is a solid 29% increased compared to previous quarter + Exceptional items related to down manning in the quarter of $1.0 million Operations * Increased activity in the quart
Slide 10: Condensed profit & loss
A Q2 2023 Condensed profit & loss * Total revenue of $294.9 million in Q2 2023 represent an increase of $48.3 million from same quarter last year, driven by increased activity mainly in Well Services and Land Drilling * Adjusted EBITDA margin of 10.8% * EBITDA of $30.0 million is an increase of $10.
Slide 11: Condensed balance sheet
A 22 2023 ; Condensed balance sheet $ million 30.06.2023 31.12.2022 Cash and cash equivalents Restricted cash Accounts receivables Inventories Other current assets * Cash and cash equivalents of $67.5 million, reduced related to completion of the refinancing during April 2023 + Restricted cash of $5
Slide 12: LTM cashflow from operations
LTM cashflow from operations* 90 80 70 60 50 40 30 20 10 $1 Q2-22 Q3-22 Q4-22 Qh23 NIBD development .———22% 506 Q3-22 04-22 @ Prepaid debt fees Ml NIBD ‘ow from opera s of finan Strong cash flow from operations e Solid improvement in Last Twelve-Month cash flow from operations, in line with increase
Slide 13: Reiterate financial outlook for 2023 - on track for upper range
Reiterate financial outlook for 2023 - on track for upper range 2023 Guidance Archer Value Propo: n #10-20% Revenue [ yy ye = Strong performance in first half of : ay leading position and high-end -970 2023 offering 10 - 20% growth | * Growth in heavy intervention and 7 HROSEMIGIEFEIIS eI ReN ea inn
Slide 14: Appendix
Appendix
Slide 15: Revenue, EBITDA, NIBD and CAPEX
Revenuel[Sm] EBITDAISm] #00 264 267 yy * ‘eimbursable 250 247 240 30 Operational revenue y 30 7 200 25 25 23 150 60 20 100 + | 199) 210 “aks 22) 50 15 oO 10 Q2-22 Q322 Q422 «© Qt23S 223 Q222 Q322 © Q422 «= Qt23- 223 NIBDISml] CAPEX [Sm] ee eT 17,3 550) 510 506 6 500 488 anne 16 Pr id debt fe 450 ° r
Slide 16: Estimated FX effect on revenue and EBITDA
+30% Estimated FX effect on revenue from adverse movement in NOK -5% and GBP against USD +21% jan.22 apr.22 jul.22 okt.22 jan.23 apr.23 jul.23 okt.23 1H 2022 1H 2023 +66% Estimated FX effect on EBITDA from adverse movement in NOK and GBP against USD approximately -13% $4 million +54% jan.22 apr.22 j
Slide 17: Quarterly figures in $ million
(Figures in $ million) Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 17 17
Slide 18: Q2 2023 - Appendix: Condensed balance sheet
A Q2 2023 - Appendix Condensed balance sheet (unaudited) Cash, cash equivalents & restricted cash 99.1 108.7 93.0 198.2 731 Accounts receivables 135.0 121.3 152.6 147.1 161.2 Inventories 52.9 51.0 55.2 62.1 68.5 Other current assets 36.3 39.5 39.0 43 36.4 Investments and loans in associates 68 10.1
Slide 19: Appendix: Condensed cash flow statement
- Appendix Condensed cash flow statement - last 5 quarters (unaudited) (l in $ million) Q222 Q3 22 Q4 22 Q123 Q2 23 Operating activities 16.8 247 87 30.2 17 Investing activities (4.8) (4.3) (26.7) (17.7) (10.9) Financing activities (8.2) (4.4) (8.2) 94.7 (114.8) FX effect (8.9) (6.4) 5.4 (2.0) (1.2)