Nekkar Asa · OSL:NKR
Nekkar Asa — Q1 2024 Earnings Presentation
27 slides from Nekkar Asa's earnings presentation, May 16, 2024
Slide 1: Q1 2024 Financial results
Q1 2024 Financial results Ole Falk Hansen CEO, Nekkar ASA Nekkar ASA | 16.05.2024
Slide 2: Disclaimer
Disclaimer By reading this company presentation (the “Presentation”), or attending any meeting or oral presentation held in relation thereto, you (the “Recipient”) agree to be bound by the following terms, conditions and limitations. The Presentation has been produced by Nekkar ASA (the “Company”) f
Slide 3: Nekkar in brief
Nekkar in brief Revenue 2023 MNOK 575 Industrial technology company Order backlog (31/03/24) Presently a portfolio of established businesses and impact technology ventures MNOK 888 within ocean-based industries World-class engineering expertise MNOK 197 in cash Proven track-record delivering complex
Slide 4: Industrial technology company driving efficiency & sustainability for ocean-based industries
Industrial technology company driving efficiency & sustainability for ocean-based industries World-class expertise Engaged industrial Flexible ownership model to ownership maximize value Scalable software leveraged across the portfolio Long-term active owner Individual degree of integration to In-ho
Slide 5: Portfolio overview
Portfolio overview Companies The global leading provider of shipyard solutions for safe Intelligent load handling systems, such as cranes and and efficient ship docking gangways, for renewables, subsea, and aquaculture vessels Industrial software solutions focused on digitalizing workflows through a
Slide 6: Business segments
Nekkar operates in four main business segments, focused on sustainable technologies for ocean-based industries Shipyard Renewables Aquaculture Offshore Energy Solutions segments Business Digital Portfolio Impact technology ventures 6
Slide 7: The portfolio consists of mature, financially solid businesses, and new impact technology ventures
The portfolio consists of mature, financially solid businesses, and new impact technology ventures Nekkar portfolio, overview of maturity level and key focus areas 3. Established Installed customer base 2. Growth Focus on profitability Proven products Service on installed base Broaden customer base
Slide 8: Highlights: Q1 2024
Highlights: Q1 2024 Financial highlights Operational highlights • Good project execution • Revenue of MNOK 152, up 50% versus Q1 2023 (101) • MUSD 5 contract with ASMAR Chile • 5-year maintenance contract in India • EBITDA of MNOK 30, up 33% (23) • MUSD 8 contract with Dubai Maritime City • Transoce
Slide 9: Key financials | Per quarter
Key financials | Per quarter Revenue EBITDA & margin (%) MNOK MNOK +50% 50 +32% 35 179 32 45 30 162 29 30 152 40 25 132 35 23 25 30 101 20 25 23% 20% 15 20 19% 18% 18% 15 10 10 5 5 0 0 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 EBITDA EBITDA % 9
Slide 10: Order intake and backlog | Per quarter
Order intake and backlog | Per quarter Order intake per quarter1 Order backlog development MNOK MNOK 242 864 888 832 803 747 188 148 61 27 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 10 1 Does not account for FX fluctuations in existing contracts
Slide 11: Syncrolift | Q1 update
Syncrolift | Q1 update • LoA for MUSD 5 basic engineering design contract from ASMAR Chile, plus MUSD 24 option for delivery of shiplift and ship transfer system Market & • Five-year contract, worth MNOK 23, for maintenance of ship transfer Sales system installed at Indian Navy's ship repair yard in
Slide 12: Syncrolift’s market leadership
Syncrolift’s market leadership Syncrolift has delivered 19 of the top 20 operational shiplifts globally, Sorted by capacity r city ons n t ft i t ft n i n y i 201 , 0 1 2 Syncrolift AS n i 201 0,000 1 Syncrolift AS S i t 2010 0,000 1 Syncrolift AS sl n 199 2 ,000 1 2 Syncrolift AS in S l n S i r i 2
Slide 13: Contract wins in 2023/2024 emphasise Syncrolift’s global reputation and competitiveness
Contract wins in 2023/2024 emphasise Syncrolift’s global reputation and competitiveness Undisclosed naval shipyard Europe Ship transfer system Song Thu Shipyard Vietnam Dubai Maritime City Extension of shiplift and ship United Arab Emirates transfer system previously 2x shiplift upgrades supplied by
Slide 14: ASMAR, Chile, represents significant potential
ASMAR, Chile, represents significant potential Firm: 2024 Option: 2025 onwards Photo: ASMAR • Letter of Award: Basic engineering design of 5,000 t • Option: Phase two equipment delivery of Syncrolift shiplift and ship fluid bed shiplift and ship transfer system transfer system • Value: USD 5 million
Slide 15: Growing Syncrolift’s installed base in Dubai
Growing Syncrolift’s installed base in Dubai Dubai Maritime City (DMC) Q2/23: Contract signed Q1/24: New contract award Photo: Dubai Maritime City Photo: Dubai Maritime City • Maritime cluster in UAE that covers all • Upgrade of two existing, third-party • Contract for delivery of 3 x newbuild ship
Slide 16: High visibility and tendering activity
High visibility and tendering activity Syncrolift order backlog by execution year1 Tender pipeline, newbuild/upgrades by year of contract award1 MNOK Per 31.03.24 MNOK Per 15.04.24 796 3.970 800 4.000 700 179 3.500 970 617 600 3.000 500 2.500 400 2.000 1.900 300 1.500 200 1.000 100 500 1.100 0 0 202
Slide 17: Techano Oceanlift | Q1 update
Techano Oceanlift | Q1 update • High tendering activity Market & • Developing new series of offshore/subsea cranes to meet increased demand Sales for subsea operations and construction - electrified – enabling it to deliver regenerated power back to the vessel Intelligent offshore lifting & load han
Slide 18: Intellilift | Q1 update
Intellilift | Q1 update Market & • Control system contract for drillship upgrade directly to Intellilift Sales • Tendering for simulators and other drilling controls Data-driven performance for ocean-based industries • Revenue primarily driven by external drilling projects Ownership Employees Head o
Slide 19: InteliWell’s performance gaining international recognition
nt li ll’s performance gaining international recognition “As part of our efforts to improve the consistency, efficiency, and repeatability of our operations, we continued to make progress with our automation initiatives in the first quarter. We achieved another milestone with our jointly owned Intel
Slide 20: Nekkar-led consortium awarded MNOK 75 grant
Nekkar-led consortium awarded MNOK 75 grant • Consortium to develop a safe and efficient solution for main component replacement (MCR) on offshore wind turbines • Status: Preparing for launch of project • Ongoing: Finalize partner agreements and project financing plan • Total project budget for all
Slide 21: Nekkar financial highlights
Nekkar financial highlights Profit & Loss, Q1 2024 Revenue • Q1 revenue of MNOK 152, an increase of 50% MNOK Q1 2024 Q1 2023 2023 compared to the same period last year Revenue 152 101 575 Profitability Syncrolift 126 93 515 Intellilift 8 10 34 • EBITDA of MNOK 30, a 33 % increase compared to Techano
Slide 22: Balance sheet
Balance sheet Assets Balance sheet, Q1 2024 • MNOK 40.5 million of Financial assets as of Q1 MNOK 31.03.24 31.12.23 2023 are linked to the investment in FiiZK ASSETS Working capital Intangible assets and goodwill 69 67 Right of use assets 14 14 • Working capital increase of MNOK 10 Tangible assets 9
Slide 23: Cash flow
Cash flow Cash flow development, Q1 2024 Cash flow • Operating cash flow for Q1 2024 is positive at MNOK MNOK 14, driven by a solid EBITDA in the +3 MNOK period offset by increased working capital of 194 197 MNOK 10 -10 -9 30 • Cash flow from investments is negative at MNOK -7 4 in Q1 2024 and is ma
Slide 24: Nekkar’s capital allocation strategy
r’s c it l lloc tion str t y Available capital, Q1 2024 MNOK Net cash 197 Portfolio growth Undrawn credit facility 200 Investments in existing portfolio companies to fuel organic growth while maintaining a strong balance sheet Total 397 Expecting continued solid operational cash flow Share buy-backs
Slide 25: Summary Q1 2024 & outlook
Summary Q1 2024 & outlook Summary Outlook ▪ Backlog provides good visibility for 2024 and 2025 Strong revenue growth of 50% versus Q1 2023 ▪ High tendering activity ▪ Successful implementation of InteliWell’s breakthrough award likely to open up further rig Healthy order backlog of NOK 888 million,
Slide 26: Alternative performance measures
Nekkar ASA Alternative performance measures INTRODUCTION TO ALTERNATIVE PERFORMANCE MEASURES (APMs) PROFIT MEASURES Nekkar Group (Nekkar) discloses alternative performance measures in addition EBITDA is short for “earnings before interest, taxes, depreciation and to those normally required by IFRS.
Slide 27: nekkar.com
AY NEKIKAR nekkar.com