Slide 1: 2022 Q4 results
2022 Q4 results 28 February 2023 abl-group.com
Slide 2: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 3: Disclaimer
Disclaimer ▪ This Presentation has been produced by ABL Group ASA (the “Company” or “ABL Group”) solely for use at the presentation to investors and other stake holders and may not be reproduced or redistributed, in whole or in part, to any other person. This presentation is strictly confidential, h
Slide 4: 2022 Highlights – Continued delivery on growth and improved profitability
2022 Highlights – Continued delivery on growth and improved profitability Revenue and adj EBIT development 2017-2022, USDm • 2022 revenue of USD 167.9 million, up 11% from 2021 (2021: USD 150.7 million) 168 • Adjusted EBIT of USD 15.5 million (2021: USD 9.6 151 million) 9% • Total dividend of NOK 0.
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights 44.1 42.8 • Revenue of USD 42.8m, up 13% compared to Q4 2021 (USD 37.8m) 37.8 • Organic growth primarily driven by renewables consultancy OWC (+15% Revenue YoY) and specialist engineers Longitude (+18% YoY) (USDm) • Adjusted EBIT of USD 3.5m (Q4 21: USD 2.5m) Q4'21 Q3'22 Q4'22 • A
Slide 6: Our Markets
Our Markets 6 A=
Slide 7: ABL Group Service Portfolio
ABL Group Service Portfolio CONSULTING & ENGINEERING LOSS PREVENTION LOSS MANAGEMENT • Owner’s engineering • Marine design, upgrade Surveys, inspections & Marine warranty survey Marine casualty support & Expert witness & litigation • Technical due diligence & conversion audits • Renewables managemen
Slide 8: Global partner, local expert – Approaching 1,100 employees
Global partner, local expert – Approaching 1,100 employees 1,098 Employees1 62 Offices 38 Countries Global footprint provides clients with local expertise and swift response 8 1 Includes freelancers on FTE basis. Calculated as average during 4Q 2022.
Slide 9: Diversified revenue base across sectors and regions
Diversified revenue base across sectors and regions Market sector revenue LTM1 Segment revenue LTM1,2 Add Energy Maritime Longitude 6% 18% 6% Europe 22% Americas 14% 167.9 167.9 Oil&Gas USDm 53% USDm Asia Pacific Renewables Middle East 20% 29% 16% OWC 16% 9 Note: Market sector revenue based on manag
Slide 10: Project: Iberdrola appoints ABL Group for marine support services
RENEWABLES Project: Iberdrola appoints ABL Group for marine support services • ABL Group has signed a framework agreement to provide engineering and marine In 2022, ABL Renewables… services to support construction and operations & maintenance campaigns for Iberdrola’s German offshore wind farms • Ib
Slide 11: Project: ABL wins Greenlink interconnector offshore work
RENEWABLES Project: ABL wins Greenlink interconnector offshore work • ABL Group has been awarded a contract to provide marine warranty survey (MWS) services on the Greenlink interconnector – a 500MW interconnector linking power networks in Ireland and Great Britain. • Greenlink is a 190km long HVDC
Slide 12: Project: ABL Group completes Dos Bocas marine transportation project
OIL & GAS Project: ABL Group completes Dos Bocas marine transportation project • ABL Group and its client Mammoet have successfully completed 12 heavy-lift In 2022, ABL Oil&Gas… shipments of refinery equipment to the new Dos Bocas project in Mexico • ABL Germany has provided project management, owne
Slide 13: Project: ABL completes engineering design on USS Texas restoration
MARITIME Project: ABL completes engineering design on USS Texas restoration • ABL Group’s Houston office, together with group company Longitude, are proud to In 2022, ABL Maritime… have contributed to ongoing restoration work on the USS Texas, the only surviving battleship to have served in both Wor
Slide 14: Staff growth continues, accelerated by Add Energy acquisition
Staff growth continues, accelerated by Add Energy acquisition Highlights Q4 2022 Staff level development1 • Average staff levels flat from Q3 2022 1 200 50% • 4% increase in permanent staff from last quarter 45% 1 000 • Freelancer share of 26%, down from 29% in Q3 40% • Reduction primarily due to se
Slide 15: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 16: Revenue and adjusted EBIT
Revenue and adjusted EBIT Revenue (USDm) Adj EBIT (USDm) +13% +41% 44.1 4.7 42.8 41.4 39.6 38.3 38.0 37.8 36.7 4.0 3.5 3.4 2.8 2.4 2.5 19.6 2.0 1.0 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 Revenue (reported) Adjusted EBIT 16 Note: Add Energy consolida
Slide 17: Segment revenues and EBIT
Segment revenues and EBIT Segment revenues (USDm) Segment adjusted EBIT1 (USDm) 14.0 2.0 12.0 10.0 1.5 8.0 6.0 1.0 4.0 2.0 0.5 0.0 0.0 -2.0 -4.0 -0.5 -6.0 -8.0 -1.0 4Q21 3Q22 4Q22 4Q21 3Q22 4Q22 • Revenue growth primarily driven by renewables consultancy OWC (+15% YoY), specialist engineers Longitud
Slide 18: Income Statement
Income Statement USD million Consolidated income statement Q4 2022 Q4 2021 FY 2022 FY 2021 • Revenues of USD 42.8 million for Q4, up 13% from Q4 2021 (USD 37.8 million) Revenue 42.8 37.8 167.9 150.7 Total revenue 42.8 37.8 167.9 150.7 • EBIT of USD 2.5 million (Q4 21: USD 1.9m) Staff costs (23.6) (2
Slide 19: Strong financial position, returning excess cash to shareholders and banks
Strong financial position, returning excess cash to shareholders and banks Highlights Q4 2022 Working capital2 (% of quarterly revenue) • Net cash1 of USD 17.6 million (Q3 22: USD 15.1 million) 100% 94% 94% 93% 92% • USD 31.0 million cash (Q3 22: USD 29.3 million) 87% 89% • USD 13.3 million bank deb
Slide 20: Proposing semi-annual dividend of NOK 0.35 per share
Proposing semi-annual dividend of NOK 0.35 per share Paid and proposed dividends (NOK/share) • Proposing dividend of NOK 0.35 per share, corresponding to USD 3.6 million 0.35 • The distribution will for tax purposes be considered a repayment of paid-in capital 0.30 0.30 • The dividend is subject to
Slide 21: Highlights, Financial review, Outlook
1. Highlights Reuben Segal, CEO 2. Financial review Stuart Jackson, CFO 3. Outlook Reuben Segal, CEO © 2012-2023 ABL Group
Slide 22: Wind development remains strong, installation growth to return after lull in '22
RENEWABLES Wind development remains strong, installation growth to return after lull in ‘22 Offshore wind, new installations (GW) Installed base (% and GW) CAGR 22% 22 Source: GWEC
Slide 23: Investments in greenfield and wells ramping up after brownfield focus in 2022
OIL & GAS Investments in greenfield and wells ramping up after brownfield focus in 2022 E&P capex growth Offshore Well Spend1 Growth by Region 40.0% 60% 56% 30.0% 50% 48% 20.0% 16% 40% 35% 10.0% 30% 0.0% 23% 24% 20% 16% 16% -10.0% 12% 8% 9% -20.0% 10% 0% -30.0% 0% -2% -40.0% -10% 2022e 2023e 2003 20
Slide 24: Summary and outlook
Summary and outlook • Highest fourth quarter revenues and EBIT in company’s history • Strong cash flow amid working capital improvements • Strong market outlook across the energy sector • Offshore wind development continues high growth in existing and new geographies • Offshore wind installation mar
Slide 25: Appendix
Appendix © 2012-2023 ABL Group
Slide 26: ABL Group targets
ABL Group targets • Financial targets • Renewables and energy transition services target at 50% of revenue in 2025 • Adjusted EBIT margin of 10 percent (excluding effects from IFRS 16 Leases and items affecting comparability) over a business cycle • More efficient cash management and working capital
Slide 27: Billing ratio development
Billing ratio development Billing ratio1 – Total technical staff (including freelancers) LOC consolidated from 1Q21 80.0% 78.0% 76.0% 74.0% 72.0% 70.0% 68.0% 66.0% 64.0% 62.0% 60.0% Oct-20 Jan-21 Apr-21 Jul-21 Oct-21 Jan-22 Apr-22 Jul-22 Oct-22 Billing ratio Gliding 3m average 1 Billing ratio exclud
Slide 28: General (1/2)
General (1/2) Basis of preparations Alternative Performance Measures (APMs) This presentation provides consolidated ABL discloses APMs in addition to those normally required by IFRS. APMs are meant to provide an enhanced insight into financial highlights for the quarter of the the operations, financ
Slide 29: General (2/2)
General (2/2) Alternative Performance Measures (APMs) continued Return on equity (ROE) ROE is calculated as the adjusted profit (loss) for the period attributable to equity holders of the parent, divided by average total equity for the period. The adjusted profit (loss) is annualised for interim per
Slide 30: Adjustment items
Adjustment items USD thousands Adjustment items (EBITDA) Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Restructuring and integration costs 30 185 283 36 29 14 362 - - 19 170 189 Other special items (incl. share-based expenses) 83 318 106 353 531 485 1 475 456 209 504 603 1
Slide 31: APMs and Key Figures
APMs and Key Figures USD thousands Profitability measures Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Operating profit (loss) (EBIT) (416) 2 946 1 859 2 281 1 319 1 916 7 375 2 806 3 868 3 329 2 512 12 514 Depreciation, amortisation and impairment 360 1 477 1 072 899 820
Slide 32: APMs and Key Figures
APMs and Key Figures USD thousands Net Cash Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Cash and cash equivalents 30 642 30 642 28 319 24 532 23 212 19 815 19 815 21 212 18 711 29 267 30 974 30 974 Less: Interest bearing bank borrowings 15 083 15 083 15 096 13 310 12 504
Slide 33: Consolidated Statement of Income
Consolidated Statement of Income USD thousands Consolidated income statement Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Revenue 19 565 77 015 36 698 38 266 37 986 37 797 150 748 39 643 41 367 44 100 42 788 167 897 Total revenue 19 565 77 015 36 698 38 266 37 986 37 797 1
Slide 34: Consolidated Statement of Financial Position
Consolidated Statement of Financial Position USD thousands Consolidated balance sheet Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Property, plant and equipment 1 213 1 350 1 284 1 169 1 137 1 345 1 787 2 993 2 101 Right-of-use assets 4 707 4 046 3 363 2 938 3 629 3 619 8 046 7 954 7 904 Go
Slide 35: Consolidated Statement of Cash Flow
Consolidated Statement of Cash Flow USD thousands Consolidated cashflow statement Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Profit (loss) before taxes (2 328) 2 507 1 414 1 866 495 2 408 6 184 3 151 2 847 3 026 1 629 10 654 Adjustments for: Depreciation, amortisation an
Slide 36: Revenues and EBIT - split per segments
Revenues and EBIT - split per segments USD thousands Revenues Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Middle East 5 738 22 365 7 230 7 775 6 282 7 186 28 473 7 789 7 929 6 661 7 835 30 214 Asia Pacific 5 610 22 249 8 959 9 129 9 950 11 237 39 275 9 598 8 646 10 263 9
Slide 37: Trade receivable & Cash and cash equivalents - split per segments
Trade receivable & Cash and cash equivalents - split per segments USD thousands Trade receivables Q4 20 FY 20 Q1 21 Q2 21 Q3 21 Q4 21 FY 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 22 Middle East 6 338 6 338 6 316 6 997 6 251 6 363 6 363 6 190 6 477 5 295 5 226 5 226 Asia Pacific 8 091 8 091 8 243 9 327 7 631 7 6
Slide 38: Top 20 shareholders
Top 20 shareholders # Name of shareholder No. of shares % ownership 1 GROSS MANAGEMENT AS 14 890 351 14.2% 2 HOLMEN SPESIALFOND 10 450 000 10.0% 3 BJØRN STRAY 6 217 743 5.9% 4 MELESIO INVEST AS 4 811 016 4.6% 5 SOBER AS 3 500 000 3.3% 6 SAXO BANK A/S 3 281 696 3.1% 7 HAUSTA INVESTOR AS 2 725 852 2.6
Slide 39: abl-group.com
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