Slide 1: Second Half and Full Year 2021
SECOND HALF AND FULL YEAR 2021 Henrik Badin, CEO Vow ASA Oslo, 23 February 2022
Slide 2: Disclaimer
DISCLAIMER This presentation has been prepared by the management of Vow ASA using commercially reasonable efforts to provide estimates and information about the company and prospective new markets. The presentation includes and is based, inter alia, on forward-looking information and statements that
Slide 3: About Us
ABOUT US Provider of world leading technologies to eliminate pollution, enhance circular economy and mitigate climate change Our brands Offering patented unique solutions that turn waste and biomass into CO2 neutral energy, decarbonised energy, low-carbon fuels and biocarbon Proven ability to contin
Slide 4: Key Features
KEY FEATURES 117 450+ 120 patents systems systems in backlog within 17 families to be delivered of patents installed1 over the next 3-5 years 35 181 6 proprietary technologies countries with operations and 25 proprietary technology employees Norway, France, Poland, US, applications Canada and Italy
Slide 5: Financial and Operational Headlines
FINANCIAL AND OPERATIONAL HEADLINES
Slide 6: Key Takeaways
KEY TAKEAWAYS Backlog Full year revenues were 454 million in 2021, on par with 2020, showing a significant improvement in the second half of the year. EBITDA was NOK 43.5 million 1,291 +36%2 Profit before tax was NOK 325 million, reflecting the values created in the successful million y-o-y +826 m o
Slide 7: Key Financials | Group
KEY FINANCIALS | GROUP Aftersales and Landbased gaining speed … 826 Options 248 253 778 212 201 542 584 199 48 74 590 Landbased 19 49 34 40 14 18 34 Aftersales 66 1291 Backlog 11.6 9.9 10.1 10.1 1061 9.2 160 149 149 145 890 989 952 Cruise projects 114 H2 19 H1 20 H2 20 H1 21 H2 21 H2 19 H1 20 H2 20
Slide 8: Key Financials | Group
KEY FINANCIALS | GROUP … and Q4 marks significant shift 155 114 52 109 93 98 Landbased 26 17 20 Aftersales 8 17 11 22 7 14 79 81 83 Cruise projects 69 62 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Revenues by quarter (in NOK million) 8
Slide 9: Projects | Cruise
PROJECTS | CRUISE Virgin Cruise’s Valiant Sea delivered in 2021 as the second in a series of three with total clean ship solutions from Scanship inside Continued strong performance and relatively stable EBITDA margin within the normal variance seen in projects. Whereas 2021 EBITDA margin was slightl
Slide 10: Aftersales | Cruise
AFTERSALES | CRUISE Cruise operations continued to resume as Covid-19 restrictions were eased in key markets. Consequently, revenues in H2 was 34 million, up from 14 million in H2 20, but still at around half of pre- covid level EBITDA returned to positive in H2, driven by the higher revenue base in
Slide 11: Landbased
LANDBASED Revenues in H2 increased 51% to 74 million YoY, and more than doubled from Q3 to 52 million in Q4, a result of several contracts being awarded through the year 215 million contract with Vow Green Metals confirmed for delivery in 2022. Production of equipment well underway More blue-chip in
Slide 12: Strategy and Outlook
~ STRATEGY AND OUTLOOK Vow
Slide 13: Drivers
DRIVERS Industry Economic push for realities decarbonising Photo: AP EU carbon emission cost 2017-2022 “Decarbonise Circular Policies and or die!” economy regulation Larry Fink CEO Blackrock 13
Slide 14: Industry Response
INDUSTRY RESPONSE am / & ArcelorMittal & 14 VOW
Slide 15: Cruise Newbuilds and Retrofits
CRUISE NEWBUILDS AND RETROFITS High activity and Vow well positioned and with order book far into 2025/26 Current number Scanship orders Year of of vessels1 in Scanship orders advanced Cruise operators are actively vessel cruise industry for waste wastewater engaged in fleet renewal delivery orderbo
Slide 16: Increased Market for Aftersales
INCREASED MARKET FOR AFTERSALES Aftersales revenues and EBITDA through the pandemic (in NOK million) In pre-pandemic 2019, Aftersales reported 239 250 126 million revenues and 22.5 million 205 30 EBITDA 200 Revenues 25 Covid-19 hit Aftersales hard from Q2 2020 EBITDA 150 20 Business is gradually com
Slide 17: Rising Costs and Carbon Tax
RISING COSTS AND CARBON TAX Cost of CO2 emissions Price for metallurgical coking coal1 Price for natural gas in EU for heating2 EU CO2 emission cost (ETS) 2017-2022, Price for coking coal used in metallurgical industry. Price for natural gas in EU first day every month. and estimate 2030 Included EU
Slide 18: The 50,000-Tonnes Project
THE 50,000-TONNES PROJECT Equivalent to 5x initial production capacity at Follum project and EUR 85-100 million worth of Vow technology Feeding a large European non-ferrous metal producer, LOI announced February 2, 2022 50,000 tonnes Sustainable CO2 neutral biocarbon, feedstock replacing the equival
Slide 19: Industry Use More Than 1,000 TWh Natural Gas Today
INDUSTRY USE MORE THAN 1,000 TWH NATURAL GAS TODAY Pyrolysis gas is becoming available as a solution for the industry Source: Eurostat - Supply, transformation and consumption of gas, EU 2019, 279 kWh/GJ 19
Slide 20: Unlocking a New Market for Pyrogas
UNLOCKING A NEW MARKET FOR PYROGAS Qualifying pyrogas for the European gas grid Overview of pyrogasification for injection in France More than ten commercial projects and gas production demonstrators in France have already been made public. GRTgaz Europe’s second largest gas distributor “Pyrogasific
Slide 21: Vow in the Carbon Economy
VOW IN THE CARBON ECONOMY Powerhouse for decarbonising industrial process and energy production Powerhouse for carbon recycling and enrichment Powerhouse for carbon sequestration Biocoal as reduction agent (steel industry) Renewable Advanced circular Graphite for batteries feedstock carbon material
Slide 22: Gaining Speed
GAINING SPEED 2021 in brief: Delivered solid operational performance and significant value creation through the successful launch of Vow Green Metals Record high order backlog provides good visibility for 2022. Revenues estimated to nearly double Cruise is bouncing back as cruise operators continue
Slide 23: Second Half and Full Year 2021
SECOND HALF AND FULL YEAR 2021