Next Geosolutions Europe Spa · MIL:NXT
Next Geosolutions Europe Spa — Investor Presentation (July 2024)
40 slides from Next Geosolutions Europe Spa's investor presentation, July 2024
Slide 1: Going Deeper, Sailing Further – Investor Presentation
GOING DEEPER SAILING FURTHER Investor Presentation July 2024
Slide 2: Key People
Key People ATTILIO IEVOLI GIOVANNI RANIERI GIUSEPPE MAFFIA CHAIRMAN CEO CFO Foto Foto • 30+ years of experience in shipping • 30+ years of experience in Offshore • 20+ years of industry experience in shipping survey industry • Selected experience: industry • Selected experience: Marnavi Group, • Sel
Slide 3: A Successful IPO
A Successful IPO Shares newly issued 8,000,000 Outstanding shares post-IPO 48,000,000* IPO Date 22 May 2024 Issue Price (€) 6.25 Market Cap (€/M) @ IPO 290.625 Market Euronext Growth Milan The total amount of the placement reserved to primary institutional investors and qualified investors, both Ita
Slide 4: Corporate Governance & Shareholders Structure
Corporate Governance & Shareholders Structure Board of Directors Shareholders Structure Attilio Ievoli Chairman 15.50% Giovanni Ranieri Giuseppe Maffia 2.36% Director / CEO Director / CFO 3.67% 5.33% Andrea Costantini Giorgio Filippi Independent Independent 52.60% Director Director 5.33% Board of St
Slide 5: Next Geo at a Glance
Next Geo at a Glance
Slide 6: A Green-born Survey Company For Offshore Market Development
A Green-born Survey Company For Offshore Market Development WHO WE ARE Key Financials 2023 NextGeo Main Projects 2015-2023 A LEADING EUROPEAN 100% ~86% OWF Subsea Cables Projects Marine Renewables Interconnector Projects PLAYER IN MARINE Oil&Gas Projects GEOSCIENCE SURVEY AND €148.6m Total Revenues
Slide 7: Derisking Subsea Infrastructure Projects
Derisking Subsea Infrastructure Projects… WHAT WE DO Infrastructure Stage EPC, installation and Operations & Concept & Planning Decommissioning commissioning maintenance 4-10 2-3 20-25 1-2 Years Years Years Years Client Capex Client Opex ~93%1 Concept Phase Design & Engineering Installation & Constr
Slide 8: …by Analyzing Seabed and Marine Subsea Data…
…by Analyzing Seabed and Marine Subsea Data… Final report / Lab test Data processing, analysis and interpretation of survey data to create marine cartography for project design & engineering Demobilization Desktop studies End of marine activities and Existing data review and removal of marine spread
Slide 9: Mission Critical Partner of Primary Infrastructure Players
Mission Critical Partner of Primary Infrastructure Players CLIENT CATEGORY BREAKDOWN TRANSMISSION SYSTEM OFFSHORE WIND FARM SUBSEA CABLES OIL & GAS OPERATOR DEVELOPERS PRODUCERS / INSTALLERS COMPANIES 2023A REVENUES BY END-MARKET 2023A REVENUES BY CLIENT CATEGORY Oil&Gas 1% Other 2% Oil&Gas 1% Gover
Slide 10: Explosive Growth Path Sealing Booming Market Momentum
Explosive Growth Path Sealing Booming Market Momentum 2023 Purchase of the 160 vessel NG Driller and new innovation projects 140 2022 Entering in the deep- geotechnic (drilling) market 120 2021 through new projects with Vattenfall and COP 2020 Geographic expansion into the 100 Netherlands through ❑
Slide 11: Wildfire Geographic Expansion Driven by Ever Larger Projects
Wildfire Geographic Expansion Driven by Ever Larger Projects INTERCONNECTOR OFFSHORE WIND FARM DUTCH AREA INCREASING MARKET SIZE ACCELERATING NEXT GEO’S TYRRHENIAN LINK PROJECT NEDERWIEK PROJECT GROWTH PATH ~€10bn ~€14bn Interconnectors EPCI OWF Subsea Cables Expenditure between Expenditure between
Slide 12: How Survey Activities are Delivered: Vessels, Equipment and People
How Survey Activities are Delivered: Vessels, Equipment and People VESSEL FLEET EQUIPMENT MULTINATIONAL TEAM Next Geo owns and operates a large pool of in-house Next Geo has access to an extensive fleet of both owned Next Geo's multi-national team of highly experienced technical resources, including
Slide 13: An Asset Light Company Maximizing Operating Flexibility
An Asset Light Company Maximizing Operating Flexibility Rented Marnavi’s assets ❑ Rental strategy for standardized assets Key ❑ Highly flexible cost structure features Pay-per- use ❑ Immediately available and fully equipped assets MPSV IEVOLI AMBER MPSV IEVOLI COBALT MPSV IEVOLI IVORY 1 Pay-per-use
Slide 14: Vessels: Detail of Owned Assets
Vessels: Detail of Owned Assets Next Geo’s proprietary assets Owned vessels Geophysical and geotechnical Geotechnical survey drilling survey vessel vessel ❑ Year built: 2009 ❑ Year built: 2009 ❑ Trial Speed: 12,00 knots ❑ Trial Speed: 12,00 knots ❑ Owned: 80% NG – 20% Marnavi ❑ Owned: 100% Next Geo
Slide 15: Equipment: A Key Success Factor Providing Strong Specialization
Equipment: A Key Success Factor Providing Strong Specialization Next Geo’s proprietary assets Equipment Geotechnical survey Geophysical & UXO survey 1x ❑ Rated: 3000m – 5000m ❑ Length: 5.5m The CPT analyzes seabed soil ❑ Survey speed: Up to 6 knots properties by driving a metal tip into the ground,
Slide 16: R&D Activity is Key to Deliver State-of-the-art Services
R&D Activity is Key to Deliver State-of-the-art Services Continuous R&D research offering innovative and sustainable solutions and supporting energy transition ~8% of R&D cost 30% 2 of R&D on sales cost covered Patents in 2023 by grants MARINE SEDIMENT SAMPLING HIGH-SPEED SURVEY ROV AUTONOMOUS SURVE
Slide 17: Key Financials
Key Financials
Slide 18: Strong Top Line Growth & Impressive Profitability of Asset Light Strategy
Strong Top Line Growth & Impressive Profitability of Asset Light Strategy 2022-2023 Growth 2022-2023 €M & Margins ❑ Total revenues (incl. €64m of WIP) growth 148.6 driven by: ❑ The ability to be awarded projects Total 121% 67.2 with higher size Revenues YoY Growth ❑ Increased number of projects ❑ St
Slide 19: Solid Backlog
Solid Backlog HARD BACKLOG ~€275m ~€325m ~€205m 2027 31.12.2023 29.02.2024 NTM Last year covered SOFT BACKLOG & PIPELINE ~€100m ~€253m Soft backlog as of Pipeline as of 29.02.2024 29.02.2024 18
Slide 20: Margins Sustainability
Margins Sustainability 1 INCREASING PROJECT SIZE 2 BID-TO-BID MECHANISM ❑ Thanks to the long-lasting relationships with its customers, NextGeo is increasingly obtaining new orders via bid-to-bid mechanism, i.e. a joint proposal with customers ~€43m 2023 Max project size ❑ Bid-to-bid mechanism gives
Slide 21: Highly Flexible and Efficient Cost Structure
Highly Flexible and Efficient Cost Structure Total Revenues €67.2m €148.6m ❑ Pay-per-use strategy guaranteeing high-cost flexibility and keeping the D&A costs relatively low (slightly higher 113.3 in 2023E for the new vessel purchased) 0.7% 1.1 2.7% 4.1 0.1% 7.8% 0.2 ❑ Around half of operating costs
Slide 22: Sound Balance Sheet Paired with Solid Deleveraging
Sound Balance Sheet Paired with Solid Deleveraging NET INVESTED CAPITAL €M CAPEX EVOLUTION €M % of capex on total revenues 20.7% 13.8% 58.9 39.2 19.7 20.5 0.6 1.7 14.9 13.9 €39.3 42.4 0.4 €23.4 tangible 25.9 tangible assets 18.9 assets (0.1) 13.5 (2.1) (3.0) 2022A 2023A 2022A 2023A Fixed Assets Net
Slide 23: Superior Cash Generation Capabilities
Superior Cash Generation Capabilities 2023 LEVERED FREE CASH FLOW (€M) €m 1 Source: Financial Statements, Management accounts; company information Note: 1) Computed as provision to funds net of use of funds 22
Slide 24: Market Positioning & Future Strategy
Market Positioning & Future Strategy
Slide 25: A Leading Position in North Sea and Med Area Energy-Infrastructure Projects
A Leading Position in North Sea and Med Area Energy-Infrastructure Projects AMONG TIER 1 INTERNATIONAL COMPANIES1 EBITDA 18% 37% 48% 24% 27% margin2 EBIT 12% 29% 17% 24% 24% margin3 2,187 1,161 9544 173 163 149 1865 Company 1 Company 2 Company 3 Company 4 6 NextGeo % Marine 76% 100% 100% ~100% 100%
Slide 26: Explosive Offshore Wind Market Trends…
Explosive Offshore Wind Market Trends… Supportive European Incentives – REPowerEU Increasing EU’s 2030 target to Reaching 500 GW in 2030 of installed Goals 45% renewables in the EU energy production mix wind capacity from 204 GW in 2022 Funds €300bn of investments to promote energy transition Boomin
Slide 27: …Boosting Investments in All Energy Fields…
…Boosting Investments in All Energy Fields… Interconnectors EPCI Expenditure (€bn, ’23-’33) – European Markets OWF Subsea Cables Expenditure (€bn, ‘23-’33) – European Market ~75% renewables Total amount of EPCI expenditure expected Cumulative installation cost of OWF subsea cables to reach ~€43bn be
Slide 28: …and Driving Strong Demand for Geo-Data Insights
…and Driving Strong Demand for Geo-Data Insights OWF Drilling Market (# of turbines, ‘23-’34) – European Market OWF Expenditure for Opex Activities (€bn, ‘24-’33) – European Market ~5,000 turbines to be developed in Europe Cumulative expenditure of OWF OPEX activities1 between 2023 - 2034 estimated
Slide 29: Value Chain Integration Widening the Spectrum of Services Offered
Value Chain Integration Widening the Spectrum of Services Offered FURTHER CONSOLIDATION FURTHER EXPANSION Design & Installation & Concept Phase Asset in Service Decommissioning Engineering Construction Today Tomorrow EXPANDING THE BUSINESS MODEL TO CATCH OTHER VALUE CHAIN SEGMENTS WILL SECURE NEXT G
Slide 30: Fleet & Geographic Expansion Through Organic and Inorganic Growth
Fleet & Geographic Expansion Through Organic and Inorganic Growth FLEET SPRAWL GEOGRAPHIC EXPANSION NEXT GEO WAS BORN INTERNATIONAL COVERING BOTH MEDITERRANEAN AND NORTH SEA SINCE ITS INCORPORATION CONTINUE THE FLEET EXPANSION MAINTAINING THE FLEXIBILITY OF AN ASSET LIGHT COMPANY BALANCING OWNED AND
Slide 31: Next Geo Sustainability
Next Geo Sustainability Next Geo Agenda 2030 Next Geo ESG Commitment Raising awareness of gender equality Scope 1: ongoing monthly monitoring extended to all vessels in operation on Next projects. Scope 2: ongoing monthly monitoring of GHGs from business travel, both for ITA and UK. Ecovadis Certifi
Slide 32: Appendix
Appendix
Slide 33: Income Statement
Income Statement Income Statement 2022A 2023A Operating revenues 52.6 79.9 Changes in contract work in progress 12.7 64.0 Other revenues 1.9 4.6 Total Revenues 67.2 148.6 Raw materials (5.9) (10.2) Raw materials (6.8) (9.6) Change in inventory of raw and consumable materials 0.9 (0.5) Cost of servic
Slide 34: Balance Sheet
Balance Sheet Balance Sheet 2022A 2023A Tangible assets 23.4 39.3 Intangible assets 2.5 3.1 Financial assets 0.0 0.0 Fixed Assets 25.9 42.4 Inventories 60.4 123.9 Trade receivables 19.9 39.6 Trade payables (17.7) (29.2) Advances (51.4) (116.6) Trade Working Capital 11.2 17.7 TWC on Total Revenues 16
Slide 35: Cash Flow Statement
Cash Flow Statement €m 2022A 2023A A) Cash flow from operating activities Net Income 7.4 29.2 Taxes 0.0 4.3 Financial expenses (income) 0.7 1.7 1) Profit before income taxes, interest, dividends and capital gains / losses on disposal 8.1 35.2 Provision to funds 0.4 0.4 Depreciation of fixed assets 2
Slide 36: Major Projects Across Different End-Markets
Major Projects Across Different End-Markets INTERCONNECTOR OFFSHORE WIND FARM TYRRHENIAN LINK (EAST AND WEST) NEDERWIEK PROJECT ~970km Kabeltracés of length Nederwiek 1 ~2GW Nederwiek 2 of capacity ~1GW Overig of capacity Aangewezen windenergiegebieden Ankergebied 600+ Clearways days 400+ scheepvaar
Slide 37: Indicative Project Timeline
Indicative Project Timeline 2/3 months ~3 months Tender Offer Award Start of activities 1-4 years (based on the project) Bid-to-bid Offer Bid-to-bid Offer Client’s award Start of activities CASE STUDIES 1 INTERCONNECTOR - TYRRHENIAN LINK PROJECT (2023) End Jul Oct Jul Oct Nov Feb 2022 2022 2023 2023
Slide 38: Group Structure
Group Structure 100% 100% 100% 100% 80% 50% 100% Next Geosolutions Next Geosolutions Next Geosolutions Phoenix Srl Subonica Srl Seashiptanker Srl NextPoli Srl UKCS Ltd Polish Sp.Z.o.o.1 BV 20% Marnavi SpA Source: Company Information 1) To be established 37
Slide 39: Organizational Structure
Organizational Structure CEO Business Next Geosolutions Procurement CFO Development QHSE Manager R&D Manager BV Managing Manager Director Director Sales & Risk Planning & Vessel Data Protection Offshore Wind Execution Director Commercial Document Management & Officer Strategy Director Manager Manage
Slide 40: Disclaimer
Disclaimer The information contained in this presentation (the “Presentation ”) has been prepared by Next Geosolutions Europe S.p.A. (the “ Company ” or Next Geo ”) for the sole purpose of the presentation made to you concerning the Company. This Presentation and the information contained herein are
Next Geosolutions Europe — Investor Presentation (July 2024) on 6ix