Scana Asa · OSL:SCANA
Scana Asa — Investor Presentation (December 2021)
58 slides from Scana Asa's investor presentation, Dec 15, 2021
Slide 1: Scana ASA Company presentation
Scana ASA Company presentation 15 December 2021 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Disclaimer
Disclaimer IMPORTANT INFORMATION. THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OF AMERICA, ITS TERRITORIES OR POSSESSIONS, AUSTRALIA, CANADA, JAPAN OR SOUTH AFRICA OR TO ANY RESIDENT THEREOF, OR ANY J
Slide 3: Agenda
Agenda 1. Investment highlights 2. Company introduction 3. Appendix (1) - Business units 4. Appendix (2) - Key financials 5. Appendix (3) - Market 6. Appendix (4) – Other appendices 3
Slide 4: Investment highlights
Investment highlights 4
Slide 5: Combining two leading maritime and offshore solution providers
Combining two leading maritime and offshore solution providers Integrate the business lines to be the 1 Acquisition of PSW Group by Scana for total consideration NOK 525m 2 Private placement of NOK 400-450 million in Scana to finance the acquisition 3 preferred partner to the ocean industry’s transi
Slide 6: A diversified provider of services and solutions for the offshore and maritime industry
A diversified provider of services and solutions for the offshore and maritime industry Energy solutions Technology & Products Mooring solutions Wind & Offshore services ▪ Leading turn-key provider of ▪ «One stop shop» for rig and drilling ▪ Provider of advanced products for ▪ Unique infrastructure
Slide 7: Investment highlights
Investment highlights 1 Positioned to become a European leader in shore power and maritime electrification Market leader in markets with ~17% annual growth backed by strong financial, regulatory and technological drivers 2 Unique offering for the rebounding market for offshore maintenance and certif
Slide 8: Management team with over 100 years experience from maritime industries
Management team with over 100 years experience from maritime industries STYRK BEKKENES TORVALD REIESTAD ODDBJØRN HAUKØY ERLEND EINEVOLL EIRIK SØRENSEN BREDE H. SELENG CEO Scana CFO – Scana CEO PSW and co-founder Manager PSW Manager PSW P&A CFO - PSW • Joined Scana in 2019 • Joined Scana in 2020 • Co
Slide 9: Board of directors with substantial offshore, maritime and capital markets experience
Board of directors with substantial offshore, maritime and capital markets experience DAG SCHJERVEN ESPEN S. BERGE RUNE MAGNUS LUNDETRÆ MARIANNE LIE MARGARET HYSTAD Chairman of the board Board member Board member Board member Board member Dag Schjerven (b.1954) has more Espen S. Berge (b. 1979) has
Slide 10: Scana contributes to the shift towards a greener future
Scana contributes to the shift towards a greener future through electrification and emission-reducing solutions Vessel CO2 reducing Self-sufficient Shore power electrification solutions facilities electrification ~96,000 +22 ~34,000 +500 tons CO2 saved1) Vessel hybridizations tons CO2 saved on BOP M
Slide 11: Energy Solutions provides complete systems and solutions for electrification
Energy Solutions provides complete systems and solutions for electrification of the maritime industries Shore Power Energy Storage Systems (ESS) ▪ Turnkey EPCI provider of ▪ Delivers and integrates turnkey shore power solutions for ESS onboard vessels and rigs harbors ▪ Allows optimized efficiency t
Slide 12: Energy Solutions
Energy Solutions Shore connection cabinet Battery power with shore connection Cable management Shore power system Power outlet Substation Connection to powergrid
Slide 13: Leading position in markets expected to grow 17% p.a.
Leading position in markets expected to grow 17% p.a. Robust drivers for high growth Global maritime energy storage solutions market to grow 17% p.a. Investment value by year, figures in bNOK 5.0 • Economic incentives in a combination of fuel savings and government subsidies 4.1 1.2 +17% • Technolog
Slide 14: Technology & Products is a leading one stop shop for rig and drilling equipment
Technology & Products is a leading «one stop shop» for rig and drilling equipment maintenance and certification Competency, expertise and assets Key services and products Rig maintenance, SPS/ Riser & BOP certification reactivation, and certification • Engineering / project management • Inspection a
Slide 15: Attractive near-term opportunities supported by strong NCS fundamentals
Attractive near-term opportunities supported by strong NCS fundamentals Maintenance lag and Strong increase in North Sea rigs Pipeline of large project- modernization continue to fuel with upcoming substantial 10,15 investments on Mongstad demand and 20 year SPS Maintenance Spending on NCS North Sea
Slide 16: Wind and Offshore services: a significant future potential
Wind and Offshore services: a significant future potential Wind and offshore services: Unique dock facility create platform for growth • Long-term lease contract for Europe’s largest dry dock under construction at Sløvåg, across the fjord from Mongstad • Significant potential as mobilization, constr
Slide 17: Mooring solutions: represents a profitable niche business
Mooring solutions: represents a profitable niche business Mooring Solutions: Profitable and diversified niche leader Offshore (53%) Aquaculture (41%) Offshore Wind (5%) • A provider of innovative systems and solutions for offloading, anchoring swivels, and other turret-related equipment • Since 2015
Slide 18: Scana has a solid client base of market leaders
Scana has a solid client base of market leaders – providing opportunities for increased sales from expanded offering Blue chip customers across maritime industries Renewable energy & Industrial Oil & Gas aquaculture 18
Slide 19: Attractive near-term cash flow combined with fast-growing high-margin revenue segments
Attractive near-term cash flow combined with fast- growing high-margin revenue segments Comments 2000 Technology & Products Energy Solutions • Management expectation NOK Mooring Solutions 1800 1,750 1,120m in revenues for 2022 with a target EBITDA margin in the high 1600 single digits 21.5% 1400 • T
Slide 20: Growth target supported by strong 3Q performance and substantial contract awards
Growth target supported by strong 3Q performance and substantial contract awards Comments Recent contract awards Port of Stockholm – Energy Solutions ▪ All subsidiaries with positive EBITDA in 3rd quarter ▪ Turnkey contract for two high voltage shore power systems ▪ Run rate1 EBITDA and net profit o
Slide 21: Company introduction
Company introduction 21
Slide 22: Introduction to Scana
Introduction to Scana Company highlights Group structure and 2020 EBITDA Through its portfolio companies, Scana manages several hundred years of Nordic industrial history. 1987 Scana’s predecessor, Scana Industrier, was established. 1987 – 1995 Several companies were acquired this period, filling up
Slide 23: Introduction to PSW Group
Introduction to PSW Group Company highlights Group structure and avg. revenue share last 3 years ▪ PSW Group is a service and solutions provider for maritime and offshore industries, rooted in the North Sea but with global reach PSW Group ▪ Leading provider of BOP/well control equipment and riser ma
Slide 24: Business units
Business units 24
Slide 25: Creating a preferred partner for the ocean industry's transition
Creating a preferred partner for the ocean industry’s transition towards sustainable operations PSW Power & Automation PSW Technology PSW offshore Wind & Yard Sasystems PSW Solutions Subseatec Skarpenord 1): Preliminary figure, based on LOI and subject to final due diligence 2) Preliminary figure, s
Slide 26: Energy Solutions at a glance
Scana Energy Tech Mooring Wind Energy Solutions at a glance Introduction to Energy Solutions Utilizing the green megatrend for accelerated future growth ▪ Leading provider of power and automation solutions for maritime and offshore Market leading position with +100MVA capacity installed in industrie
Slide 27: Energy Storage System (ESS)
Scana Energy Tech Mooring Wind Energy Storage System (ESS) What is an ESS solution? Modularized (container based) solution enabling hybridization of existing or new ships or rigs Energy storage in batteries allows optimization of the entire energy solution onboard a vessel, resulting in cost and emi
Slide 28: Shore Power
Scana Energy Tech Mooring Wind Shore Power What is a Shore Power solution? Integrated shore power system for safe and reliable power transfer from the public electric power grid to the vessel while in port Modularized (container-based) solution easily scaled to manage changes in demand Allows vessel
Slide 29: Energy Solutions is a leading player with strong track record
Scana Energy Tech Mooring Wind Energy Solutions is a leading player with strong track record and unmatched ability to delivery on complex projects Leading player in Norway with strong track-record A leading position in Norway with ~40% market share in shore power and strong position in other segment
Slide 30: Energy Solutions operates in fast-growing markets with strong drivers
Scana Energy Tech Mooring Wind Energy Solutions operates in fast-growing markets with strong drivers. Set for further growth in Norway and Europe Kongsberg Maritime Tender processes Positioned in fast-growing Strong underlying drivers provides solid vessel- advantageous for Scana markets base to gro
Slide 31: Set for further growth in existing markets and new emerging opportunities
Scana Energy Tech Mooring Wind Set for further growth in existing markets and new emerging opportunities such as grid-balancing and hydrogen Emerging opportunities; grid balancing and hydrogen Push towards offshore electrification The energy storage solutions increasingly relevant to solve Continued
Slide 32: Technology & Products at a glance
Scana Energy Tech Mooring Wind Technology & Products at a glance Introduction to Technology & Products Characteristics ▪ A leading one-stop-shop provider of maintenance services with state-of-the-art facilities at Mongstad, strategically located at the heart of current and future energy industry Uni
Slide 33: Re-certification and rig stay offering
Scana Energy Tech Mooring Wind State-of-the art continuous re-certification and complete rig stay offering across all rig types and maintenance scopes Scana re-certification services Rig stay offering Yard-stay & Certification SPS 5-year re- 1-year re- Continuous re- Fjord stay cycle Drydock certifi
Slide 34: Subsea shutoff device – capitalize on innovation
Scana Energy Tech Mooring Wind Subsea shutoff device – capitalize on innovation Operators Drilling And Well’s Technology Strategy • One of operators’s strategy (Equinor) is to Transfer D&W scope from rig to vessel, this is where the SSD comes to life Subsea Shutoff Device (SSD) • A Subsea Shut-off D
Slide 35: Emergency response – capping stack
Scana Energy Tech Mooring Wind Emergency response – capping stack Following the Macondo incident, drilling companies are required to have access to a Capping Stack for emergency use as a "license to drill" Scana offers Capping Stack as a service for multiple drilling clients • Complete lifecycle man
Slide 36: Skarpenord
Skarpenord Skarpenord is one of the world’s leading suppliers of valve remote control systems for the shipping and offshore industry. Core products are ▪ Solenoid valve cabinets ▪ Hydraulic power units ▪ Actuators ▪ Computerized valve control 36
Slide 37: Subseatec
Subseatec Subseatec is one of the most experienced companies in the world on riser applications for the oil and gas industry. Core products are ▪ Risers (SCR and TTR) ▪ Pipe and flow lines ▪ Bodies ▪ Other subsea 37
Slide 38: Leading maintenance and service provider with state-of-the-art facilities
Scana Energy Tech Mooring Wind Leading maintenance and service provider with state-of-the- art facilities and innovative solutions for reducing emissions Technology & Products characteristics Solar-powered One-stop-shop for all Recurring business Proven innovative and Strong reputation in facilities
Slide 39: Robust NCS market outlook supported by strong fundamentals
Scana Energy Tech Mooring Wind Robust NCS market outlook supported by strong fundamentals Maintenance lag and Plugging & abandonment boom on Pipeline of large project- modernization continue to fuel NCS will create attractive investments on Mongstad demand opportunities Maintenance Spending on NCS F
Slide 40: Mooring Solutions at a glance
Scana Energy Tech Mooring Wind Mooring Solutions at a glance Introduction to Mooring solutions Strong position in growing markets ▪ Provides innovative system solutions for offloading, anchoring swivels and other turret-related equipment Established Delivered several offshore aquaculture projects cr
Slide 41: Broad industry coverage
Scana Energy Tech Mooring Wind Broad industry coverage ~41% ~5% ~53% Aquaculture Offshore Wind Offshore and LNG ▪ Turret, chains and anchors for offshore ▪ Mooring of floating structures for ▪ Mooring and turret solutions for floating fish farms offshore wind applications production and storage vess
Slide 42: Financials
Financials 42
Slide 43: Pro forma consolidated H1 with IFRS-adjustments
Pro forma consolidated H1 with IFRS-adjustments Consolidated income statement Scana PSW Group • The main IFRS adjustment is Lease-contracts under Six Six Six months months months IFRS 16* period ended 30 period ended 30 period ended 30 • EBITDA increase of NOK 31m for PSW June June June • Increased
Slide 44: Pro forma consolidated balance sheet
Pro forma consolidated balance sheet Proforma Group Consolidated statement of financial position Group EQUITY: As at 30 Paid-in capital 485 • Long term debt of NOK 210m consist of June Other equity -39 2021 • NOK 100m term loan, 5 year Total equity 445 (Amounts in NOK million) (IAS 34) • NOK 65m bul
Slide 45: Historic pro forma key financials
Historic pro forma key financials Proforma historical P&L combined NOK in millions FY18A FY19A FY20A Technology 549.7 659.0 516.2 Mooring Solutions 55.4 160.1 115.0 Energy Solutions 130.4 158.0 195.6 Scana HQ - - - Elimination/Dico 16.7 2.6 (66.7) Sales 752.3 979.7 760.2 Other operating income 22.9
Slide 46: Scana historic key financials
Scana historic key financials Historical P&L Historical balance sheet FY18A FY19A FY20A FY18A FY19A FY20A Total non-current assets 72.2 73.6 96.0 Total revenue 223.5 364.1 318.1 Total current assets 214.1 152.1 148.0 Total assets 286.3 225.7 244.0 Gross margin 51.6% 38.4% 46.8% EBITDA (12.7) 10.6 34
Slide 47: PSW historic key financials
PSW historic key financials Historical P&L Historical balance sheet FY18A FY19A FY20A FY18A FY19A FY20A Total non-current assets 79.9 95.0 143.4 Total revenue 523.1 592.7 498.0 Total current assets 172.0 264.1 225.8 Total assets 251.8 359.1 369.2 Gross margin 60.6% 60.9% 60.6% EBITDA 88.7 64.6 (16.0
Slide 48: Market fundamentals
Market fundamentals 48
Slide 49: Scana is well positioned in attractive industries with several growth opportunities
Scana is well positioned in attractive industries and has several opportunities for further growth Business units Position & market attractiveness Future growth opportunities Energy Solutions ▪ Market leading turnkey player of power & automation, positioned in high- High growth potential in Norway w
Slide 50: The number of vessels installing ESS systems annually is expected to grow by 2x
The number of vessels installing ESS systems annually is expected to grow by 2x within 2025 Historical & forecasted development in global maritime energy storage solutions (ESS) Figures in annual number of deliveries CAGR 238 ’20-’25 +15% 202 15 % 74 Other1) Other 175 161 64 Other passenger 21 % 10
Slide 51: The ESS market expected to grow by ~17% annually towards 2025
The ESS market expected to grow by ~17 % annually towards 2025 ESS value by vessel segment Forecasted development in global maritime ESS market Figures in bNOK Segment ESS value2) CAGR ~20 Ferries mNOK 5.0 ’20-’25 Offshore 1.2 19 % 4.1 ~20 +17% supply vessel mNOK Other (OSV) 3.5 1.0 0.2 23 % 3.2 0.5
Slide 52: Norwegian shore power market expected to reach ~400-450 mNOK in 2025
Norwegian shore power market expected to reach ~400-450 mNOK in 2025, largely driven by 100% shore power coverage for cruise Coverage1) Share of Norway: Estimated market development Description of segment drivers investments ‘21-’25 ‘20 vs. ‘25 Investment value by year, figures in bNOK 100% ▪ Shore
Slide 53: Norway is leading the electrification of ports
Norway is leading the electrification of ports with ~50% of ports with shore power located in Norway. Large adoption potential in RoW Ports with shore power facilities Shore power per region Number of ports per country or region 144 6% APAC North 10% America 68 6 15 26% 38 8 10% 6 1 1 47% 1 # of sys
Slide 54: Appendix
Appendix 54
Slide 55: Our vision Powering the ocean industries
Our vision Powering the ocean Powering the ocean industries industries ▪ Our vision is to be a turnkey solution-partner to customers in ocean industries in the transition to a more sustainable future ▪ We meet all our clients’ challenges with safe, reliable and cost-efficient solutions, based on our
Slide 56: Energy solutions - Ågotnes facility
Energy solutions - Ågotnes facility • Top modern and "one of a kind" facilities • Sublease of parts of the facilities to partnership companies such as Kongsberg Maritime and SubC Solutions. • Increase bundling and cross sale • Self sufficient with solar panel energy - high battery capacity for stora
Slide 57: Technology products – facility Mongstad
Technology products – facility Mongstad • Top modern and "one of a kind" facilities • Well control & heavy equipment facilities • Pilot area • Workshops • Warehouse • Administration • Quay access • PSW yard • NDT 57
Slide 58: Thank you
Thank you Scana ASA | P.O. Box 26 Blomsterdalen | Lønningsvegen 47 | NO-5868 Bergen, Norway | T +47 51 86 94 00 | E post@scana.no scana.no