Vow Asa · OSL:VOW
Vow Asa — H1 2023 Earnings Presentation
28 slides from Vow Asa's earnings presentation, Aug 23, 2023
Slide 1: Trading Update and H1 2023 Report
TRADING UPDATE AND H1 2023 REPORT Henrik Badin, Chief Executive Officer Tina Tønnessen, Chief Financial Officer Oslo, 23 August 2023 Plant for production of biochar and renewable energy in Rhode Island, USA, featuring processing equipment from Vow Source: Quonset Soil Solutions
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: H1 2023 | Key Takeaways
H1 2023 | KEY TAKEAWAYS H1 2023 Revenues +12% Continued growth in revenues in H1 2023 with 12% increase 449 y-o-y year-over-year million EBITDA reflects good performance in cruise and heat treatment and the cost of building pipeline in Industrial Solutions H1 2023 Aftersales delivered record high re
Slide 4: Key Financials | Group
2 144 KEY FINANCIALS | GROUP 1 839 Per half-year 53 449 999 Options 400 383 778 148 39 121 184 30 253 87 201 23 71 74 20 Industrial 34 49 Aftersales 18 34 1.061 1.145 Backlog 10,1% 191 214 6,6% Maritime 149 167 145 H1 21 H2 21 H1 22 H2 22 H1 23 H1 21 H2 21 H1 22 H2 22 H1 23 H1 21 H2 21 H1 22 H2 22 H
Slide 5: Key Financials | Group (rolling months)
KEY FINANCIALS | GROUP 2 244 2 144 Rolling 12 months 836 832 783 94 95 844 748 92 999 Options 652 311 269 77 304 69 314 Industrial 258 158 138 120 101 Aftersales 83 1.4… 1 145 Backlog 387 406 Maritime 312 333 359 11.7% 8.2% Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q2 22 Q3 22 Q4 2
Slide 6: Business Segments
BUSINESS SEGMENTS EBITDA margin and share of group revenue in H1 2023 INDUSTRIAL MARITIME AFTERSALES Increased activity and cost Continued high activity Breaking new records, well of building pipeline and good performance above pre-pandemic levels -0.3% 33% 20.4% 48% 15.0% 19% EBITDA margin EBITDA m
Slide 7: Industrial Solutions
INDUSTRIAL SOLUTIONS Formerly named Landbased Quonset Soil Solutions contract now confirmed C.H. Evensen (heat solutions) delivered growth and strong margins. Experiences strong demand and secured several significant new orders High tendering and project development activity drive costs Building cap
Slide 8: Busy in Business Development
BUSY IN BUSINESS DEVELOPMENT Industrial Solutions Several new industry majors are evaluating our technology Some customers are considering multiple projects Vow is currently developing and bidding for 33 projects, with contract award during the next 3-4 year period Industry size projects means much
Slide 9: Maritime Solutions
MARITIME SOLUTIONS Formerly named Cruise Projects Continued high revenues in H1, driven by equipment deliveries to cruise newbuilds Main equipment deliveries to 14 newbuilds and 2 retrofits in the first half of 2023 Backlog with confirmed contracts into 2029 providing visibility for future revenues
Slide 10: Strong Order Backlog and Pipeline
STRONG ORDER BACKLOG AND PIPELINE Maritime Solutions Current backlog comprises 30 confirmed Ships with Vow equipment orders for cruise ships under construction In backlog, confirmed Tendering is ongoing or underway for an In backlog as ‘option’ additional 47 ships Currently being bid 1 7 6 1 Shipown
Slide 11: Aftersales
AFTERSALES Another quarter with record high revenues in Aftersales, with activity firmly back at pre-pandemic level Recurring revenues are increasing as installed base continues to grow Another 36 cruise newbuilds equipped with Scanship 49 million systems will be delivered until 2029, options not in
Slide 12: Income Statement
INCOME STATEMENT Key figures NOK million 1H 2023 1H 2022 FY 2022 All time high revenues, mainly driven by high Revenues 448.7 399.9 782.8 activity in Maritime Solutions and Aftersales offset by reduced activity for Industrial EBITDA before non- Solutions 29.6 53.3 92.2 recurring costs Margin 6.6% 13
Slide 13: Financial Position
FINANCIAL POSITION Balance sheet, Key figures NOK million 30.06.23 31.12.22 Increase in intangible assets and goodwill Intangible assets and goodwill 563.9 512.1 relate to investments in R&D and technology Accounts receivable 288.2 293.6 for future growth and currency effects Contracts in progress 4
Slide 14: Financial Position: Cash Flow
FINANCIAL POSITION Cash flow NOK million 1H 2023 1H 2022 FY 2022 High activity and increase in working Cash and cash equivalents capital contribute to negative cash flow 42.5 141.1 141.1 from operations in the period. NOK 70 at start of period million in single payment received in July Cash from ope
Slide 15: Business Deep-Dive and Outlook
BUSINESS DEEP-DIVE AND OUTLOOK Henrik Badin, Chief Executive Officer Per Carlsson, Chief Development Officer Pål Jahre Nilsen, Vice President Innovation
Slide 16: Vow Circular Solution Markets
VOW CIRCULAR SOLUTION MARKETS Energy Metallurgy End-of-life tire Waste valorisation Sewage Sludge and Renewable Energy Reducing CO2 emissions Circular Economy in tire Valorisation of Organic Production in Metal Production manufacturing Waste Replacing fossil-based CCS, improving soil Replacing fossi
Slide 17: End of Life Tires
END OF LIFE TIRES ELT Circular industrial solution supported by more than three years pilot testing Optimizing recovered carbon black and tire pyrolysis oil Scale up concept study near completion • Modularity • Scalability • Standardisation 17
Slide 18: Carbon Black Recovery Plant
CARBON BLACK RECOVERY PLANT Capacity 3.9 tonnes per hour = 27,000 tonnes per year of granulate 18
Slide 19: 2,500 tonnes per year industry-scale production line
2,500 tonnes per year industry-scale production line 19
Slide 20: Quonset Soil Solutions
QUONSET SOIL SOLUTIONS Integrated biochar and renewable energy system
Slide 21: Scaling Up
SCALING UP Example production concept Biomass consumption1 80,000 tonne/year Biocarbon production 17,500 tonne/year Power production 34 GWh/year Heat production 84 GWh/year 21 1 At 10% moisture
Slide 22: 50 000 Tonne Biocarbon per Year
50 000 TONNE BIOCARBON PER YEAR LOI established with a world leading non-ferrous metal producer in February 2022 Since then, work has been ongoing to materialize their productions needs, quality of product and by product management Have now reached agreement in scope of supply Firm bid for six paral
Slide 23: "Forever Chemicals" PFAS
“FOREVER CHEMICALS” PFAS Perfluorooctanesulfonic acid (PFOS) A big threat to our food and drinking water PFAS are persistent, mobile and toxic (PMT) chemicals 12 000 compounds (!) • only 56 regularly analysed • only 4 regulated Used in fire fighting foam, surface coatings, personal care products, bu
Slide 24: Remediation of PFAS Contaminated Sites Needed
REMEDIATION OF PFAS CONTAMINATED SITES NEEDED Groundwater and surface water affected for several centuries without remediation Recycling will just circulate the PFAS Sorbents are a promising alternative Source: Le Monde 24
Slide 25: Strong Pull for Eliminating PFAS in Sludge
STRONG PULL FOR ELIMINATING PFAS IN SLUDGE 25
Slide 26: Strong Pull for Eliminating PFAS in Sludge
STRONG PULL FOR ELIMINATING PFAS IN SLUDGE 26
Slide 27: Summary
SUMMARY Continued growth in revenues in H1 2023 with 12% increase year-over-year EBITDA reflects good performance in cruise and heat treatment, build-up of capacity in anticipation of new orders, and allocation of resources building pipeline in Industrial Solutions Order backlog remains solid, provi
Slide 28: Believing in a Future Where Industry Is Harmonized with Nature
BELIEVING IN A FUTURE WHERE INDUSTRY IS HARMONIZED WITH NATURE