Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q4 2023 Earnings Presentation
26 slides from Expro's earnings presentation, Feb 21, 2024
Slide 1: Expro Group Holdings N.V. Q4 2023 Highlights
Expro Group Holdings N.V. Q4 | 2023 Highlights NYSE: XPRO
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: Get to Know XPRO
Get to Know XPRO TTM REVENUE1 ~80% ~70% ~$2.2bn $1,513m I N T E R N AT I O N AL OFFSHORE Asia Pacific Market Capitalization2 16% North & Latin America 34% ~$2.1bn Middle East North Africa BY 15% REGION 60 Countries S T R O N G C AS H ZERO NET-DEBT Enterprise Value3 FLOW OUTLOOK B AL AN C E S H E E T
Slide 4: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Value-Adding Services Market Leadership Global Operating Across the Well Lifecycle Footprint Cost-effective, technology- We “punch above our weight” Activity in +60 countries, with enabled services and because of long-standing 80% of revenue from solut
Slide 5: Q4 2023 and Full-Year Results
Q4 2023 and Full-Year Results Favorable long-term outlook and business momentum following strong Q4 Company Highlights Q4 2023 Full Year 2023 • Revenue growth of 10% Q/Q and Adjusted EBITDA growth of 70% Q/Q driven by Revenue Revenue improving activity mix, operating leverage, and completing the acq
Slide 6: North and Latin America (NLA)
North and Latin America (NLA) NLA Revenue ($m) NLA Segment EBITDA ($m)1 Regional Highlights 34% $145m $44m 38% Q/Q 122% Q/Q North & Latin America Strong sequential rebound in NLA revenue and Segment EBITDA, driven by normalized activity levels from customers, with higher well NLA Segment Revenue
Slide 7: Europe & Sub-Saharan Africa (ESSA)
Europe & Sub-Saharan Africa (ESSA) ESSA Revenue ($m) ESSA Segment EBITDA ($m)1 Regional Highlights $134m $41m 34% 1% Q/Q 4% Q/Q Europe & Sub-Saharan Africa Revenue generally flat Q/Q, driven by lower revenue recognition on our onshore pre-treatment plant project in the Congo, partially offset ES
Slide 8: Middle East & North Africa (MENA)
Middle East & North Africa (MENA) MENA Revenue ($m) MENA Segment EBITDA ($m)1 Regional Highlights $65m $21m 15% 13% Q/Q 26% Q/Q Middle East & North Africa Good revenue and margin expansion in MENA Q/Q, driven by higher well flow management services revenue in Algeria and the KSA and by higher ME
Slide 9: Asia Pacific (APAC)
Asia Pacific (APAC) APAC Revenue ($m) APAC Segment EBITDA ($m)1 Regional Highlights 16% $62m $5m 13% Q/Q 225% Q/Q Asia Pacific Decrease in revenue in APAC was primarily due to lower subsea well access revenue in Australia, where we suspended vessel-deployed APAC Segment Revenue and Segment EBITD
Slide 10: Customer and Technology Highlights
Customer and Technology Highlights Deepest Deployment of Expro Celebrates 40 Years Strategic Partnership with Global OWI Awards MK VI CoilHose of Subsea Success Di Drill Survey Services recognize Expro’s well intervention excellence Expro has completed the deepest In Q4 2023, we celebrated 40 years
Slide 11: Proposed Acquisition of Coretrax
Proposed Acquisition of Coretrax Global technology leader in Performance Drilling Tools, Wellbore Cleanup and Well Integrity Solutions Market-leading portfolio of technology solutions adds meaningful scale to Highly Accretive to Well Construction Business Expro’s Well Construction business +50 techn
Slide 12: Coretrax Company Profile
Coretrax Company Profile ® Global technology leader in Performance Revenue Breakdown Specialty Drilling Tools Drilling Tools, Wellbore Cleanup and Well • Downhole tools designed to harness the power of Integrity Solutions circulation across drilling, completions and P&A operations • Includes a robus
Slide 13: Outlook for 2024 and beyond
Outlook for 2024 and beyond Outlook 2024E Financial Outlook1 Medium-Term Targets for Revenue and Adjusted EBITDA Margin2,3 3,000 1 We currently anticipate 2024 revenues of Revenue ($m) $2,533 0.9 between $1,600m and $1,700m, a 9% 2,500 $2,000 0.8 increase year over year (YoY) at the mid-point of gui
Slide 14: Appendix
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 15: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacific Intervention (APAC) & Integrity $62 North & $57 Latin America (NLA) Well Q4 2023 Construction Q4 2023 $145 Middle East Revenue Revenue $145 North Africa (MENA) by Geographic by Area of Well Flow Capability $65 Market $407m Management $407m $
Slide 16: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)2 Revenue up 63% LWI-related unrecoverablercosts2 Adjusted EBITDA since Q4 2020 up ~3.4x since Q4 2020 $407 $397 $89 $374 $370 $348 $342 $351 $334 $339 $78 $326 $330 $145 $75 $313 $314 $144 $296 $116 $139 $284 $280 $66 $65 $138
Slide 17: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA / Capital Expenditures ($m)3 TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$150m since Q4 2020 LWI-related unrecoverable costs3 $89 $78 $99 $75 $65 $66 $73 $55
Slide 18: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $407 $407 $397 $397 $374 $370 $374 $370 $62 $57 $351 $351 $54 $348 $65 $348 $342 $339 $342 $42 $
Slide 19: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 42% 45% 42% 44% 42% 43% 44% 45% 43% 43% 43% 44% 50% 41% 41% 42% 41% 42% $60 38% 40% 37% $407 40% $397 $50 $374 $40 30% $370 $348 $342 $351 $30 $339 20% $330 $334 $326 $20 $313 $314 $145 10% $144 $296 $
Slide 20: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) 43% $70 42% 45% 44% 42% 43% 44% 45% 43% 43% 43% 44% 50% $60 40% 41% 45% 42% 39% 38% 36% 38% 39% 38% 38% 38% 37% 41% 42% 41% 42% 41% 36% 36% 34% $60 38% 40% 37% $50 34% 35% 33% 33% 34% 40% 35% $50 $40 30% 25% $40
Slide 21: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 35% $45 35% 30% 30% 30% 31% $45 $40 29% 27% 27% 30% 30% $40 25% 26% 26% 25% $35 23% 23% $35 21% 21% 21% 25% 22% 21% 25% $30 19% 19% 19% 18% $30 20% 18% 18% 18% 20% 16% 15% 15% $25 17% 16% $25 15% 15%
Slide 22: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support TTM support costs up $103 $102 Product Line and central costs costs since Q4 2020 ~5% with run-rate revenue $101 $101 down from 31% to up 18% $6 Ge
Slide 23: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) $2,413 $2,295 $2,271 $2,301 + + $2,178 + + $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 1) “Other” includes revenue from backlog and re-estimations. Copyright 2024 Expro. All ri
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q4 2023 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72
Slide 25: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM ($ in millions) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334
Slide 26: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6