Slide 1: HAV Group ASA Second quarter and half-year financial results 2023
HAV GROUP ASA Second quarter and half-year financial results 2023 Gunnar Larsen Pål Aurvåg CEO CFO A sustainable future at sea www.havgroup.no
Slide 2: Agenda
Agenda 1. HAV Group in brief and Q2 highlights 2. Megatrends and strategy 3. Business update 4. Financials 5. Summary and outlook 6. Q&A A sustainable future at sea www.havgroup.no
Slide 3: HAV Group: Enabling the green transition at sea
HAV Group: Enabling the green transition at sea International provider of green technology and services for maritime industries Vision: A sustainable future at sea Renowned provider of maritime products, systems and integrated solutions Special expertise in guiding the marine and maritime industries
Slide 4: Q2 Highlights
Q2 HIGHLIGHTS Key developments Operating income EBIT Profit before tax • Improved revenue and EBIT versus previous quarters • Q2 figures positively affected by reversal of previously accounted NOK 200.3m NOK 59.6m NOK 58.7m provision of NOK 46.9 million • Planned acquisition of Undheim Systems AS, a
Slide 5: Maritime greentech megatrends and HAV group strategy
Maritime greentech megatrends and HAV group strategy A sustainable future at sea www.havgroup.no
Slide 6: Maritime megatrends to accelerate growth of green technologies
Maritime megatrends to accelerate growth of green techologies Yearly offshore wind turbine installations World merchant fleet by building year NWE N. America S. America Taiwan Other APAC China Tankers Bulk Carriers Container Gas carriers Cruise / RoPax / RoRo Offshore Others 3 500 60 Implied yearly
Slide 7: HAV Group perfectly positioned to leverage greentech maritime megatrends
HAV Group perfectly positioned to leverage greentech maritime megatrends Advise customers regarding selection of vessel parameters and technologies that enable them to increase their competitiveness and enable the green transition at sea Pioneering innovations in the design and construction of zero-
Slide 8: HAV Group value creation
HAV Group value creation STRATEGIC DEVELOPMENT COMPLEMENTARITY SYNERGIES VALUE & GROWTH Actively taking part in the companies’ Creating stakeholder value through Extracting synergies through economies of Pursuing value accretive growth – strategic development to implement collaboration and utilizing
Slide 9: HAV Group – Enabling the green transition at sea
HAV Group – Enabling the green transition at sea HAV Group as integrated solutions provider Energy Hydrogen- Water Ship design design and based energy treatment smart control systems systems systems Supplier of innovative ship Supplier of sustainable energy Supplier of zero-emission Supplier of ball
Slide 10: Ship design Q2 highlights
Q2 highlights Ship design Event subsequent to end of Q2: • Repeat order: HAV Group to develop methanol-fuelled SOV for ESVAGT • Scope: ship design and integrated equipment package including propulsion system, engines, propellers and positioning system • Contract value approximately NOK 200 million •
Slide 11: Energy design and smart control systems
Energy design Q2 highlights • Acquisition of Undheim Systems and smart control • • Adds dynamic positioning and autonomous vessel capabilities Allows HAV Group to provide solutions that control all vessel speeds systems • and enables semi-autonomous functionality Closing expected Q3 2023 • Expected
Slide 12: Hydrogen-based energy systems
Hydrogen-based Q2 highlights • Continued high interest in hydrogen-based Zero Emission Pod energy systems • Adding ammonia to HAV Group’s product portfolio • HAV Group industrialization partner for Pherousa Green Technologies • Develops ammonia cracker capable of converting ammonia to fuel cell qual
Slide 13: Water treatment systems
Water treatment Q2 highlights • Recurring business represents increasing proportion of revenue systems • Successful delivery of first ATEX system to oil tanker, increases market potential for HAV Group’s BWTS technology • Contract for 4 + 2 BWTS systems to European frigate programme • Ballast water
Slide 14: Financials
Financials A sustainable future at sea www.havgroup.no
Slide 15: Revenue and EBIT development
Revenue and EBIT development Revenue EBIT 250 70 59,6 60 200,3 200 50 159,9 40 150 136,6 30 124,3 110,3 20 13,9 100 10 0,8 0 50 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 -10 -20 -15,7 0 -19,4 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 -30 A sustainable future at sea One-off effect of NOK 46.9 million rel
Slide 16: Q2 2023 key financials
Q2 2023 key financials NOKm Q2 2023* Q2 2022 YTD 2023* YTD 2022 2022 Comments • As the business is largely project-driven, unaudited unaudited unaudited unaudited Audited periodic fluctuations will occur Operating income 200.3 159.9 310.6 358.7 621.8 • Q2 2023 an improvement versus previous quarters
Slide 17: Segment financials
Ship design Water treatment systems NOKm Q2 2023* Q2 2022 2022 NOKm Q2 2023 Q2 2022 2022 Operating income 105.9 31.1 155.4 Operating income 53.9 63.6 226.7 EBIT 55.3 8.0 10.7 EBIT 2.7 5.2 24.5 Profit before tax 55.5 11.6 10.5 Profit before tax 2.1 5.1 23.3 Energy design & smart Hydrogen-based energy
Slide 18: Q2 2023 balance sheet
Q2 2023 balance sheet NOKm Q2 2023 Q2 2022 NOKm Q2 2023 Q2 2022 Comments Assets: unaudited unaudited unaudited unaudited • Cash and bank deposit increased by NOK Non-current assets Equity 35.5 million and total receivables increased Total intangible assets 81.0 77.7 Total equity 141.9 138.6 by NOK 4
Slide 19: Q2 2023 cash flow statement
Q2 2023 cash flow statement Comments Q2 NOKm Q2 2023 H1 2023 Q2 2022 H1 2022 Unaudited Unaudited Unaudited Unaudited Positive cash flow from operations Cash flow from operations • Driven by increase in advance payments from customers. The reversal of previously Net cash flow from/to operating activi
Slide 20: Order intake fluctuates from quarter to quarter
Order intake fluctuates from quarter to quarter Order intake per quarter Order backlog development 350 700 299 614 300 600 557 514 240 481 482 250 500 200 400 150 125 300 100 200 61 53 50 100 0 0 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 NOK 200 million contract
Slide 21: Order backlog: segment breakdown
Order backlog: segment breakdown 300 285 Comments • For water treatment systems, ”fleet- 250 agreements” signed by different ship owners are not included in the official backlog figures 6 200 177 Subsequent event: • NOK 200 million order for both ship design 150 and an integrated equipment package t
Slide 22: Summary and market outlook
Summary and market outlook A sustainable future at sea www.havgroup.no
Slide 23: Why invest
Why invest Strong fundamentals and megatrends for maritime greentech Perfectly positioned to leverage the green maritime megatrends Track-record of profitable operations and robust balance sheet Solid position for value creation A sustainable future at sea www.havgroup.no
Slide 24: Outlook
Outlook • Global megatrends, including regulatory changes, provide incentives and requirements for the maritime industry to reduce the environmental footprint short and long term. IMO’s revised GHG reduction strategy for shipping expected to further enhance this development. • HAV Group possesses th
Slide 25: Q&A
Q&A A sustainable future at sea www.havgroup.no