Akastor Asa · OSL:AKAST
Akastor Asa — Q4 2022 Earnings Presentation
36 slides from Akastor Asa's earnings presentation, Feb 15, 2023
Slide 1: Quarterly presentation – Akastor ASA
4Q 2022 Quarterly presentation – Akastor ASA February 15, 2023 Akastor © 2023
Slide 2: 4Q 2022 Highlights
4Q 2022 Highlights NET CAPITAL EMPLOYED 1) NOK million, 31 December 2022 ▪ Strong revenue growth and order intake in quarter driven by Book value per share Services 10.4 2.2 2.3 2.0 0.8 -0.9 17.0 -2.0 14.9 ▪ Good growth in rig years expected in 2023, with HMH well positioned in market 231 (237) 536
Slide 3: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 3
Slide 4: Summary and outlook
Summary and outlook 2022 Summary ✓ USD 692 million order book per end of year… Services up 7% versus 2021. ✓ Executed on synergy plan with wave one of ERP implementation completed, and Baker Hughes transitional service agreement exited ✓ Ended 2022 with USD 675 million revenue and USD 100 million EB
Slide 5: HMH highlights | 4Q 2022
HMH highlights | 4Q 2022 Proforma financials, IFRS ▪ Revenues up 20% year-on-year driven by DLS. Up REVENUE1) EBITDA2) EBITDA MARGIN 25% quarter-on-quarter driven by strong DLS USD millions USD millions % output and Products. 196 32 31 19.6 181 28 29 17.8 163 17.1 ▪ EBITDA down 8% year-on-year drive
Slide 6: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 26% year-on-year and up 31% quarter-on- 140 quarter following past order intake trend 108 95 102 106 ▪ Order intake up 27% year-on-year and up 31% quarter-on-quarter driven by increased rig year
Slide 7: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 150 million at end of 4Q 2022 NET INTEREST-BEARING DEBT USD millions ▪ USD 8 million instalment paid on Term Loan in period 260 ▪ Leverage below targeted capital structure of 2-3x, with NIBD / LTM EBITDA adj. at 1.5x per end of 4Q (excl. SHL) 197 110 IBD a
Slide 8: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2023 Slide 8
Slide 9: Financials highlights per 4Q 2022
Financials highlights per 4Q 2022 2) 1) 1) 1) HMH and AKOFS Offshore are both owned 50% by Akastor. HMH figures adjusted for expenses that are not a part of normal company operations. 2) AGR 2022 EBITDA incl. a one-time accounting gain of NOK 21 million (non-cash) related to establishment of the Føn
Slide 10: Financials highlights per 4Q 2022 (cont.)
Financials highlights per 4Q 2022 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange loss of NOK 153 million ▪ NES contributed negatively with NOK 144 million, of which NOK 120 million related to valuation changes from previo
Slide 11: Net interest-bearing debt development
Net interest-bearing debt development Net debt bridge 4Q 2022 highlights NOK million ▪ Net debt decreased by NOK 672 million in quarter, to NOK 1 220 million, driven by the divestment of the preferred equity holding in Odfjell Drilling ▪ “Other” (as shown in graph) includes positive non-cash foreign
Slide 12: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 31 December 2022 NOK million 423 Facility Size Maturity Margin Revolving (USD) USD 66 million [1] February 2024 4.5% - 5.5% 119 304 Revolving (NOK) NOK 250 million [1] February 2024 4.5% -
Slide 13: Agenda
Agenda Financial update HMH Ownership agenda Q&A Akastor © 2023 Slide 13
Slide 14: Portfolio of industrial and financial investments
Portfolio of industrial and financial investments Industrial investments Financial investments Global engineering staffing provider within Global full-service offshore and onshore multiple sectors drilling equipment and service provider ~15%3) 50% 5 mid-sized AHTS vessels Global provider of subsea w
Slide 15: HMH
HMH Business model REVENUE ▪ Global full-service offshore and onshore drilling USD millions equipment provider with a broad portfolio of products Capital Employed 196 62% and services 181 NOK 2 863 million 163 157 ▪ Large installed base providing firm foundation for 140 strong customer relationship
Slide 16: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 40 13% conceptual development to project execution 37 37 36 NOK 615 million 35 and offshore operations ▪ Operates two SESV vessels in Brazil
Slide 17: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 644 647 14% range of staffing services: Contract, Permanent Hire 567 576 619 NOK 636 million & Managed Solutions ▪ Spans a dive
Slide 18: AGR
AGR Business model REVENUE ▪ AGR is a multi-disciplinary engineering NOK millions consultancy and software provider to the 5% Capital Employed 208 204 energy sector 190 193 184 NOK 246 million ▪ Offers consultancy, asset evaluation, peer study, software and integrated well engineering services Akast
Slide 19: Key short to medium term priorities for Akastor
Key short to medium term priorities for Akastor Monetize key Conclude DRU Timely listing financial investments arbitration process of HMH (✓) DRU contracts DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2023
Slide 20: Agenda
Agenda Financial update HMH Ownership agenda Q&A Akastor © 2023 Slide 20
Slide 21: Appendix
Appendix Akastor © 2023 | 2023 Slide 21
Slide 22: HMH leadership from January 1st 2023
HMH leadership from January 1st 2023 Akastor © 2023 Slide 22
Slide 23: Condensed Consolidated Income Statement
Condensed Consolidated Income Statement Akastor © 2023 Slide 23
Slide 24: Condensed Consolidated Statement of Financial Position
Condensed Consolidated Statement of Financial Position Akastor © 2023 Slide 24
Slide 25: Condensed Consolidated Statement of Cash flows
Condensed Consolidated Statement of Cash flows Akastor © 2023 Slide 25
Slide 26: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated financial ▪ Gross debt - sum of current and non-current borrowings, which do not include lease liabilities statements prepared in accordance with IFRS. Such performance me
Slide 27: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) December 31 December 31 December 31 December 31 NOK million 2022 2021 NOK million 2022 2021 Non-current borrowings 198 1 372 Current operating assets 774 887 Current borrowings 1 142 16 Less: Gross debt 1 340 1 387 Current operating liabilities 531 647 Less:
Slide 28: Key figures | Group
Key figures | Group AKASTOR GROUP Akastor © 2023 Slide 28
Slide 29: Key figures | Split per company (1/4)
Key figures | Split per company (1/4) HMH Note: HMH figures presented on 100% basis [1] Excludes disposed operations, historical figures have been restated [2] EBITDA (adj.) excludes expenses that are not part of normal company operations [3] Equipment backlog defined as Project and Product orders,
Slide 30: Key figures | Split per company (2/4)
Key figures | Split per company (2/4) AKOFS OFFSHORE Note: AKOFS Offshore figures presented on 100% basis Akastor © 2023 Slide 30
Slide 31: Key figures | Split per company (3/4)
Key figures | Split per company (3/4) AGR Note: 1Q22 EBITDA incl. a one-time accounting gain of NOK 21 million (non-cash) related to establishment of the Føn Energy Services JV Akastor © 2023 Slide 31
Slide 32: Key figures | Split per company (4/4)
Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2023 Slide 32
Slide 33: Odfjell Drilling seller’s credit agreement and warrant structure
Odfjell Drilling seller’s credit agreement and warrant structure Seller’s credit agreement Warrant structure Description: Description: ▪ The preferred equity shares held by Akastor since 2018 were sold to Odfjell Drilling in ▪ Warrant structure adjusted in Q2 2022 following the spin-off of Odfjell T
Slide 34: Selected transactions since inception in 2014
Selected transactions since inception in 2014 December 2022 November 2022 August 2022 June 2022 February 2022 a HMH company 100% Sale to Establish JV 100% acquisition of Sale to Sale of preferred equity holding DDK 20m USD 95m4) October 2021 October 2020 September 2020 June 2019 April 2019 September
Slide 35: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 36: AKASTOR ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 www.akastor.com Akastor © 2023