Vow Asa · OSL:VOW
Vow Asa — H2 2019 Earnings Presentation
24 slides from Vow Asa's earnings presentation, Feb 26, 2020
Slide 1: 2H 2019 presentation
2H 2019 presentation 26 February 2020 Henrik Badin CEO Erik Magelssen CFO
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 Vow
About Vow • Deliver world leading technology that bring an end to waste and prevents pollution • Provider of solutions to replace fossil fuel, producing renewables and clean energy • Customers in cruise, aquaculture and a wide range of land-based < industries • Headquartered in Norway, with subsidia
Slide 4: Highlights 2H 2019
Highlights 2H 2019 • Record high order backlog with approx. NOK 1.5 billion including options • Strong backlog will drive growth in 1H 2020 • Acquisition of ETIA: access to new verticals with four break-through contracts already signed since takeover in October 2019 • Private placement in November r
Slide 5: Profitable growth continued in 2H2019
Profitable growth continued in 2H2019 199 183 130 23 23 15 12.5% 11.2% 11.6% 2H2017 2H2018 2H2019 2H2017 2H2018 2H2019 * 2H2017 2H2018 2H2019* Revenues EBITDA EBITDA % (in NOK million) (in NOK million) * Adjusted for non-recurring costs of NOK 18.6 mill
Slide 6: Strong full year 2019 performance
Strong full year 2019 performance 381 330 46 247 39 25 12.1 % 11.8 % 10.1 % 2017 2018 2019 2017 2018 2019 * 2017 2018 2019 * Revenues EBITDA EBITDA % (in NOK million) (in NOK million) * Adjusted for non-recurring costs of NOK 19.2 mill
Slide 7: All-time high order backlog
All-time high order backlog 890 (in NOK million) 2H2019 Etia backlog 77,9 mill Scanship backlog 812,5 mill 700 Options are all Scanship 656 590 513 469 360 330 207 160 130 86 1H2017 2H2017 1H2018 2H2018 1H2019 2H2019 Order backlog Options
Slide 8: Projects
Projects Cruise & Aquaculture Second half year Full year NOK Million 2019 2018 2019 2018 Revenues 114.4 130.7 236.0 229.8 EBITDA 20.8 21.6 37.0 34.6 EBITDA margin (%) 18.2% 16.5% 15.7% 15.1% Backlog 812.5 656.0 812.5 656.0 • Increase of margin yoy • Revenues will vary between periods based on timing
Slide 9: Landbased
Landbased Second half year Full year NOK Million 2019 2018 2019 2018 Revenues 19.1 19.1 EBITDA before non- -1.5 -1.5 recurring items EBITDA before non- -7.8% -7.8% recurring items margin(%) Backlog 77.9 77.9 • ETIA revenues of NOK 19.1 million only for the fourth quarter of the year • EBITDA for ETI
Slide 10: Aftersales (Life cycle Services)
Aftersales (Life cycle Services) Second half year Full year NOK Million 2019 2018 2019 2018 Revenues 65.9 52.4 125.7 99.8 EBITDA 10.4 7.5 22.5 15.5 EBITDA margin (%) 15.7% 14.3% 17.9% 15.5% • Revenues for segment increased 26% yoy • Segment represents 33% of total FY revenues • Sales of spares, cons
Slide 11: Profit and loss
Profit and loss CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (in NOK million) Unaudited Unaudited Unaudited Audited 2H 2019 2H 2018 FY 2019 FY 2018 Revenue 199.4 183.1 380.8 329.6 Total operating revenue 199.4 183.1 380.8 329.6 Cost of goods sold -131.0 -128.5 -259.3 -229.8 • Improvement
Slide 12: Balance sheet
Balance sheet (in NOK million) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL STATEMENT • Increase in intangible assets and goodwill from ETIA acquisition • Net interest-bearing debt at NOK 36.6 million at year-end 2019 with equity ratio at 38 % • ETIA payment terms positive on net working capital po
Slide 13: Cashflow
Cashflow (in NOK million) CONSOLIDATED CONDENSED CASH FLOW STATEMENT Unaudited Audited • Net cash flow from operations NOK 16.8 million in 2H 2019 2H 2019 2H 2018 excluding non-recurring costs. Result before tax -29,3 17,7 • Investing activities in 2H 2019 primarily related to the acquisition of Net
Slide 14: Strong order backlog foundation for further growth in the cruise market
Strong order backlog foundation for further growth in the cruise market 2020 2021 2022 2023 2024 2025 2026 2027 Chantier De Atlantique 13 Scanship Yard contractual partner Fincantieri 18 Meyer 5 CSSC 1 Kleven 1 Vessel deliveries with Scanship systems inside Total of 38 newbuilds and 125 Scanship sys
Slide 15: Well proven and complimentary technology
Well proven and complimentary technology Plastic, polymers & other Biomass from agricultural Wastewater Food Waste Garbage, RDF industrial waste and forestry Advanced Food waste wastewater collecting Feedstock Feedstock Feedstock purification and preparation preparation preparation (AWP) conveying H
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Slide 17: Increasing carbon tax is the dominant market driver
Increasing carbon tax is the dominant market driver Average increase (%) 27.50 450% 25.00 400% 22.50 250% 20.00 300% 17.50 250% 15.00 200% 12.50 150% 10.00 100% Average price (EUR/t CO2) 7.50 50% 5.00 0% Apr 2017 Apr Jul Oct 2018 Apr Jul Oct 2019 Apr Jul
Slide 18: Carbon negative process
Carbon negative process Biogenic residues from production process 7500 tla electricity ——— CO, saving = Transport avoidance on steam generator STEAM CO, saving SYNGAS c t [_[- RARARARAAAAAAAAA |] mixture of condensable vapours and calorific gas Ey Biogreen pyrolysis 1! ") PSSA Solid product cooling
Slide 19: Solutions to replace fossil fuel, producing renewables and clean energy
Solutions to replace fossil fuel, producing renewables and clean energy CH4 Heat & power CH4 Heat & power Reducing Water retention agent Bio -remediation Filtration sorbents Syngas reCB Syngas production H2 production Fossil free fuel CH4 Biochar Renewables: Biochar and Syngas Sludge and production
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Slide 21: Example projects within new strategic verticals
Example projects within new strategic verticals The vertical Example project Description and status • EU green deal to decarbonize the European • Scanship selected as technology partner in Vow gas grid drives growth in both existing project at Lindum to demonstrate technology to infrastructure and n
Slide 22: Example projects within new strategic verticals
Example projects within new strategic verticals The vertical Example project Description and status • Metallurgic industry consuming fossil coal • Production of carbon-neutral fuels for metallurgic and under strong CO2 emissions scrutiny industry • Search for carbon neutral fuels to replace • Ongoin
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Slide 24: Concluding remarks
Concluding remarks • Profitable growth continues • Record high backlog • Expanding into new verticals already in 2020 • Customer relations established on landbased with large demand