Expro Group Holdings N.v. · NYSE:XPRO
Expro — BofA Securities 2021 Global Energy Conference
42 slides from Expro's conference presentation, Nov 18, 2021
Slide 1: BofA Securities 2021 Global Energy Conference
BofA Securities 2021 Global Energy Conference Thursday, November 18 NYSE: XPRO | Expro.com 1
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Compelling Investment Thesis
Compelling Investment Thesis Expro: A Full-Cycle Energy Services Leader 1 Broad services offering provides scale, breadth and through-cycle resiliency 2 Diversified customer base with strong revenue visibility 3 Future-facing technologies position company for Energy Transition 4 Frank’s merger deliv
Slide 4: Expro at a Glance
Expro at a Glance Who We Are Company Snapshot 1 Full-cycle energy services leader with Operations in over 60 a diverse set of global capabilities in: countries; best-in-class safety and service quality • Well Construction • Well Flow Management Resilient business model to • Subsea Well Access drive
Slide 5: Strategic Priorities
Strategic Priorities Deliver Achieve Complete Well Drive Digital Enable the Succeed Extraordinary Synergies Life Cycle Transformation Energy through our Performance Solutions Transition People Continuously strive to Significant revenue Develop a balanced Evolve our digital Advance and develop Nurtur
Slide 6: Scale, Breadth and Through-Cycle Resiliency
Scale, Breadth and Through-Cycle Resiliency… Diversified offering across the full well lifecycle Revenue ~70% International Portfolio Across Diversified Customer Base (7% U.S. Land) the Well Lifecycle with Strong Revenue Visibility 2020 Revenue by Geography: 2020 Revenue by Product Line Group: 2020
Slide 7: ...with Cyclical Recovery Upside
…with Cyclical Recovery Upside Brent Crude Pro Forma Price Revenue ($m) Revenue Brent Price $105 $3,000 $99 $85 $2,500 $72 $65 $64 $2,000 $55 >$70 $54 $45 $45 $1,500 $43 COVID-19 $2,533 $25 $1,978 $1,000 $1,261 $1,390 $1,213 $1,085 $5 $1,065 $500 ($15) $0 2014 2014 2015 2015 2016 2016 2017 2017 2018
Slide 8: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Well Intervention & Well Construction Well Flow Management Subsea Well Access Integrity Innovative, high value, low risk well Proficiently gathering valuable well Ensuring safe, efficient and cost Deployment, insight and enhancement construction soluti
Slide 9: Specialty Services within Well Construction
Specialty Services within Well Construction Transforming the construction and completion of wells to drive efficiency and increase production Strengths Well Construction Revenue Strengths ($m) Strategic Advancements • Industry pioneer with +80 years of experience $1,153 Continuously transforming the
Slide 10: Leading Well Flow Management Solutions for ~50 Years
Leading Well Flow Management Solutions for ~ 50 Years Full life-of-field capabilities; innovative and agile solutions Well Flow Management Revenue Strengths ($m) Strategic Advancements Fully integrated exploration and appraisal $892 Industry leading well testing technologies (E&A) and well clean-up
Slide 11: Technology Leader in Subsea Well Access
Technology Leader in Subsea Well Access Ensuring safe well access and lightweight production enhancement Subsea Well Access Revenue Strengths ($m) Strategic Advancements $273 $280 Providing reliable, efficient and cost Broad portfolio of subsea well access effective subsea well access systems, solut
Slide 12: Global Well Intervention and Integrity Capabilities
Global Well Intervention and Integrity Capabilities Safer, smarter well intervention and integrity solutions Well Intervention & Integrity Revenue Strengths ($m) Strategic Advancements • Largest independent provider of $215 Continue to expand technology to provide mechanical wireline services, with
Slide 13: Technology and "Innovation With a Purpose"
Technology and “Innovation With a Purpose” iCAM® Light Well Intervention CoilHose™ Technology Octopoda™ Annulus Intervention Well Construction Subsea Well Access Well Intervention & Integrity Well Intervention & Integrity Solution: Artificial intelligence Solution: Lightweight wire- Solution: Nitrog
Slide 14: Future-facing Technologies
Future-facing Technologies Innovative solutions focused on automation, digitalization and Energy Transition Efficiency Digitalization Intelligent 4 Phase Galea™ Separator Autonomous well A compact system intervention solution / delivering reduced well reduced manpower / clean up and future artificia
Slide 15: Synergies: A Near-term Opportunity for Margin Expansion
Synergies: A Near-term Opportunity for Margin Expansion $80-$100M in merger synergies within 24-36 months $70M Cost Synergies $10-$30M Revenue Synergies 1 Cost synergies Revenue synergies ~$55 million of annual run-rate cost Complimentary capabilities, operating synergies within 12 months following
Slide 16: Increased Scale, Enhanced Profitability and Free Cash Flow
Increased Scale, Enhanced Profitability and Free Cash Flow Opportunity to drive free cash flow of +$150m by 2023E Revenue1 ($m) Recovery Adjusted EBITDA2 ($m) Total Liquidity3 ($m) $1,390 COVID-19 ~$370 $1,065 $238 Additional Cost Synergies at 36 $15 $177 Direct months $130 Draw Capacity $15 on RCF
Slide 17: Company Outlook
Company Outlook Q4 2021 2022 • 4Q 2021 revenue expected to be • Strengthening signals of a multi-year flat to mid-single digit revenue growth recovery with double-digit growth in largely due to reduced activity in the international spending in 2022 Northern Hemisphere • Recovering offshore market be
Slide 18: Pro Forma Revenue, Contribution Margin and Support Costs
Pro Forma Revenue, Contribution Margin and Support Costs Expected cost synergies provide clear path to margin expansion Combined support costs2 Combined support costs as a % of revenue 1 Contribution Margin Adjusted EBITDA Combined support costs as a % of revenue, net of $70m of synergies ($m) ($m)
Slide 19: Citizens of the World – Our ESG Commitment
Citizens of the World – Our ESG Commitment Sustainability: a core business principle and C-suite priority; focus is on increasing efficiency and lowering emissions E S G Our Planet Our Communities Our Structure • 50% reduction of carbon intensity • Engagement with local • No dual class shares, class
Slide 20: Focus on Sustainable Solutions for Expro and its Customers
Focus on Sustainable Solutions for Expro and its Customers Gas Compression Environmental Efficiencies Carbon Capture Operational Emissions Well Flow Management Well Flow Management Subsea Well Access and Well Flow Well Intervention & Integrity Management Customer reduced Carbon-efficient solution Th
Slide 21: For further info please visit...
For further info please visit… Downloadable Financials: Investors.Expro.com @Expro @ExproGroup @ExproGroup @ExproGroup @ExproGroup Copyright 2021 Expro Group. All rights reserved. 21
Slide 22: Thank you
Thank you Gracias Obrigado Спасиб Grazie Merci Takk skal du ha Dankeschön Bedankt 谢谢 Terima kasih ﺷﻛرا ﻟك Copyright 2021 Expro Group. All rights reserved. 22
Slide 23: Appendix
Appendix Downloadable Financials: Investors.Expro.com Copyright 2021 Expro Group. All rights reserved. 23
Slide 24: Pro Forma Historical Revenue and Adjusted EBITDA
Pro Forma Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA1 ($m) Expro Frank's Expro Frank's $2,533 $770 $1,978 $1,153 $430 $521 $975 $1,390 $1,213 $1,261 $1,085 $1,065 $305 $580 $489 $522 $456 $390 $1,380 $158 $168 $1,003 $340 $78 $132 $10 $55 $107 $725 $739 $810 $216 $28 $630 $6
Slide 25: Pro Forma Historical Revenue and Adjusted EBITDA
Pro Forma Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA1 ($m) Expro Frank's Expro Frank's $374 $348 $342 $326 $330 $52 $313 $139 $284 $44 $15 $41 $156 $139 $123 $40 $40 $251 $250 $251 $144 $115 $233 $108 $16 $9 $33 $12 $27 $86 $15 $95 $95 ($2) $25 $30 $84 $23 $1 $12 $1 $9 $20 $
Slide 26: Pro Forma Historical Adjusted CFFO and Capex
Pro Forma Historical Adjusted CFFO and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank’s Expro Frank’s $645 $646 $368 $438 $397 $173 $219 $170 $145 $100 $141 $132 $277 $21 $118 $109 $56 $224 $89 $37 $28 $208 $55 $41 $31 $69 $148 $42 $56 $14 $89 $119 $22 $104 $104
Slide 27: Pro Forma Historical Adjusted Cash flow from Operations and Capex
Pro Forma Historical Adjusted Cash flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) Expro Frank's TTM Expro Frank's $185 $40 $40 $155 $154 $37 $37 $144 $126 $33 $33 $10 $10 $118 $10 $10 $31 $99 $8 $95 $9 $5 $22 $38 TTM increase in net $20 $21 $50 $27 $
Slide 28: Pro Forma 2020 Revenue by Region and Product Line
Pro Forma 2020 Revenue by Region and Product Line Revenue by Region ($m) Revenue by Product Line ($m) $1,065 $1,065 Europe & Sub Saharan Africa North & Latin Well America $298 Construction Well Flow Management $370 $390 $408 Asia Pacific Middle East $175 North Africa Subsea Well Well Access Interven
Slide 29: Revenue by Region and Product Line
Revenue by Region and Product Line 3Q 2021 Revenue by Region ($m) 3Q 2021 Revenue by Product Line ($m) $313 $313 Asia Pacific North & Well Intervention Well (APAC) Latin America and Integrity Construction (NLA) $103 $45 $115 $49 $46 $30 Middle East Europe & Sub Well Flow $123 Subsea Well North Afric
Slide 30: Pro Forma Historical Segment EBITDA by Region
Pro Forma Historical Segment EBITDA by Region North and Latin America ($m) Europe and Sub Saharan Africa ($m) $50 50% $50 50% $40 40% $40 40% $30 30% $30 26% 30% 16% 23% 23% 22% 15% 15% 20% 19% 15% 18% 18% 17% 18% $20 14% 20% $20 15% 15% 20% 13% 11% 10% 13% $10 6% 10% $10 10% $21 $24 $20 $20 $14 $5
Slide 31: Pro Forma Historical Revenue and Contribution by Product Line
Pro Forma Historical Revenue and Contribution by Product Line Revenue ($m) Well Flow Management | Subsea Well Access | Well Intervention and Integrity ($m) $100 42% 38% 41% 45% Frank's Expro 40% 40% 38% 40% 38% $90 35% 36% 35% 40% $80 35% $70 30% $326 $348 $342 $374 $330 $251 $233 $250 $251 $284 $31
Slide 32: Pro Forma Historical Revenue by Region and Product Line
Pro Forma Historical Revenue by Region and Product Line By Region ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management $215 Subsea Well Access $364 $273 Well Intervention and Integrity $154 $234 $168 $152 $280 $892 $1,030 $169 $555 $170 $729 $142 $161 $134 $123 $157 $1
Slide 33: Pro Forma Historical Revenue by Region and Product Line
Pro Forma Historical Revenue by Region and Product Line By Region ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention & Integrity $374 $348 $374 $342 $326 $56 $330 $348 $342 $38 $313 $47 $330 $44 $326 $31 $42 $41 $313 $284 $42 $49
Slide 34: Annual Non-GAAP Reconciliations
Annual Non-GAAP Reconciliations ($ in millions) 2014 2015 2016 2017 2018 2019 2020 Adjusted EBITDA1 $770 $521 $158 $78 $132 $168 $107 Depreciation, amortization and impairment charges (274) (301) (677) (730) (241) (417) (547) Severance and other charges (3) (50) (42) (17) (7) (10) (25) Stock-based c
Slide 35: Annual Non-GAAP Reconciliations (continued)
Annual Non-GAAP Reconciliations (continued) ($ in millions) Twelve Months Ended December 31 2014 2015 2016 2017 2018 2019 2020 Total revenue $ 2,533 $ 1,978 $ 1,213 $ 1,085 $ 1,261 $ 1,390 $ 1,065 Cost of revenue (1,909) (1,669) (1,271) (1,231) (1,311) (1,392) (1,119) Depreciation and amortization 2
Slide 36: Annual Non-GAAP Reconciliations (continued)
Annual Non-GAAP Reconciliations (continued) ($ in millions) Twelve Months Ended December 31 2014 2015 2016 2017 2018 2019 2020 Cost of revenue $ 1,909 $ 1,669 $ 1,271 $ 1,231 $ 1,311 $ 1,392 $ 1,119 Depreciation and amortization (261) (285) (298) (272) (235) (214) (181) Stock-based compensation and
Slide 37: Quarterly Non-GAAP Reconciliations
Quarterly Non-GAAP Reconciliations Three Months Ended, TTM ($ in millions)\ 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 30-Sep-21 Adjusted EBITDA (1) $ 33 $ 44 $ 40 $ 52 $ 27 $ 25 $ 23 $ 30 $ 20 $ 41 $ 40 $ 132 Depreciation, amortizat
Slide 38: Quarterly Non-GAAP Reconciliations (continued)
Quarterly Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 30-Sep-21 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 1,099 Cost o
Slide 39: Quarterly Non-GAAP Reconciliations (continued)
Quarterly Non-GAAP Reconciliations (continued) ($ in millions) Three Months Ended TTM 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 30-Sep-21 Cost of revenue $ 342 $ 345 $ 338 $ 368 $ 331 $ 266 $ 250 $ 270 $ 265 $ 281 $ 301 $ 1,117 Depr
Slide 40: Links to ESG Case Studies
Links to ESG Case Studies Gas Compression Environmental Efficiencies Carbon Capture Operational Emissions Well Flow Management Well Flow Management Subsea Well Access and Well Flow Well Intervention & Integrity Management Customer reduced Carbon-efficient solution The Northern Lights project CoilHos
Slide 41: Glossary of Terms
Glossary of Terms AcumenTM – Sonar meter solutions used in surveillance, well remediation, production optimization and adaptation for existing plant and facilities Blowout Preventer (BOP) – is a specialized valve or similar mechanical device, used to seal, control and monitor oil and gas wells to pr
Slide 42: Glossary of Terms (continued)
Glossary of Terms (continued) Pipeline and Flarestack – Systems for separation, fluids and solid handling complemented by specially designed flare systems that safely and quickly vaporize and burn off highly volatile liquids in operations ranging from routine pipeline maintenance blow-downs to emerg
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