Endur Asa · OSL:ENDUR
Endur Asa — Investor Presentation (October 2020)
24 slides from Endur Asa's investor presentation, Oct 30, 2020
Slide 1: Endúr ASA: company presentation
Endúr ASA: company presentation Hans Petter Eikeland, CEO Nils Hoff, CFO
Slide 2: Important Information
Important Information B ecei i g a d a e di g a d eadi g hi c a ee ai he P e e a i each eci ie ag ee No obligation is assumed, except as required by law, to update any forward-looking statements or to conform to be bound by the following terms, conditions and limitations: these forward-looking state
Slide 3: Agenda
Agenda Introduction to Endúr & Investment highlights BMO acquisition Endúr group structure and service offering Key financials
Slide 4: Introduction to Endúr
Introduction to Endúr Company highlights Delivering on M&A strategy Endúr is on its way to become the leading service provider for Endúr has entered into an agreement to acquire BMO marine infrastructure in Norway with ability to win large projects Entreprenør AS BMO within: BMO is a strong player w
Slide 5: Market consolidator within marine infrastructure services
Market consolidator within marine infrastructure services • Attractive entry point in a consolidation journey Market consolidator • Endúr targets NOK 2.0 - 2.5bn revenues at 10-12% EBITDA margins in 2022 primarily through M&A within marine • Full-service offering within marine infrastructure to take
Slide 6: Building a solid service provider able to win large projects
Building a solid service provider able to win large projects within land based aquaculture and marine infrastructure • Building a full-service offering 1 6 within marine infrastructure to 1 take large multi-disciplinary projects 1 • Acquisition of BMO fulfils 1 1 4 critical competence 1 • Targeting
Slide 7: Positioned towards two high growth verticals with similar offering requirements
Positioned towards two high growth verticals with similar offering requirements 2019 PF revenue mix1 Aquaculture2 Marine infrastructure3 NOKbn Public sector investments, NOKm 36 Acquaculture 1 348 Legacy/Other 18 % 12% 12% 35 % CAGR CAGR 827 Marine 11 472 Infrastructure 47 % 2019E 2030E 2017 Yearly
Slide 8: Selected market verticals estimated at more than NOK 3bn annually, and growing fast
Selected market verticals estimated at more than NOK 3bn annually, and growing fast NOKm 1 100 >3bn ~1,500 ~2,000 ~400-600 Big-smolt Land based big scale Aquaculture Marine Infrastructure Marimite infrastructure Market estimate Note: Big smolt assumes ~2bn of investments 2021-2025e, whereof pipe and
Slide 9: Current offering represent NOK 500m of relevant capex on big smolt facilities
Current offering represent NOK 500m of relevant capex on big smolt facilities alone, substantially higher potential through future M&A NOKm Future and potential through M&A, where BMO adds new capabilities ~1.4-1.6bn ~2bn ~400-600m Annual capex for big-smolt facilities Facilities, buildings, other P
Slide 10: Larger and more complex projects means attractive economics for E2E providers
Larger and more complex projects means attractive economics for E2E providers Current Including BMO Total EPC contractor NOKm NOKm NOKm 213 250 14.9% 85 12.0% 100 13.5% 50 43 2 2 2 2 0,5 37 6 13,5 Contract size Contract cost Overhead EBITDA Contract Contract Overhead Efficiency EBITDA Contract Contr
Slide 11: Case study: Specific aquaculture company
Case study: Specific aquaculture company Scope of contracts Illustration • Currently building water intake pipes • Client has high growth ambitions and several marine infrastructure contracts to be awarded going forward • Potential add-on contracts: • Quay construction • Sea bed mapping/dredging • W
Slide 12: Track record of delivering on growth plan
Track record of delivering on growth plan Delivery on 2022 target of NOK 2.0-2.5bn revenues Current size including BMO 2019 Revenues (NOKm) Pro-forma revenues (NOKm) 2,000-2,500 2 500 10% 9% 2 000 8% 825 7-8% 7% 480 1 500 6,2% 6% 395 300 1bn 5% 1 000 4% 695 3% Endúr Oceano BMO Remaining Target 2022
Slide 13: Acquisition of BMO adds desired service offering at high margin earnings
Acquisition of BMO adds desired service offering at high margin earnings Rationale Targeted marine infrastructure segments • BMO has delivered consistent strong returns 1 • EBITDA around 15% over the last 5 years Sea cables/ • S ead a d g i g de a d f BMO e ice pipeline installation allowing growth
Slide 14: Agenda
Agenda Introduction to Endúr & Investment highlights BMO acquisition Endúr group structure and service offering Key financials
Slide 15: BMO is a strong player within maintenance of critical marine infrastructure
BMO is a strong player within maintenance of critical marine infrastructure: Quays, dams and bridges About BMO Revenues (NOKm) Key service offering BMO Entreprenør BMO a 500 480 Rehabilitation and maintenance of large established in 1996 314 infrastructure projects Niche player that provides mainten
Slide 16: Sticky revenues from repeat customers and strong cash conversion
Sticky revenues from repeat customers and strong cash conversion Project mix (NOKm) High degree of public customers Cash conversion 450 Customer mix in orderbook 2018 2019 400 Adj. EBITDA 68.6 63.9 6% EBITDA 63.2 28.6 350 Cash flow from operations 91.2 77.0 300 Capex (25.9) (20.4) 46% 48% 250 Other
Slide 17: Settlement in combination of cash, vendor note and own shares
Settlement in combination of cash, vendor note and own shares Overview of the transaction Settlement in NOKm Purchase price of NOK 448m (EV NOK 418m) settled in shares in Endúr, vendor note and cash: 157 448 NOK 157m settled in Endúr shares at NOK 1.459 e ha e he C ide a i Sha e NOK 110m settled in
Slide 18: Agenda
Agenda Introduction to Endúr & Investment highlights BMO acquisition Endúr group structure and service offering Key financials
Slide 19: New journey backed by experienced management team, board and owners
New journey backed by experienced management team, board and owners Management team Board of directors Owners1 Hans Petter Eikeland Chairman: Øivind Horpestad CEO of Endúr since 2019, and former Over 10 year built NRC Group from zero to NOK Chairman of Endúr. Previously CEO of Ability 6bn in revenue
Slide 20: Group structure with strong national presence
Group structure with strong national presence Locations New structure Comments •1 Sjøsterk, a provider of aquaculture solutions specialized in feed barges in concrete, was acquired in 2018 • 8 FTE 4 Bergen Bodø Marine •2 Oceano acquired in June 2020 Marine services Legacy • 141 FTE HQ, Sjøsterk Mari
Slide 21: Agenda
Agenda Introduction to Endúr & Investment highlights BMO acquisition Endúr group structure and service offering Key financials
Slide 22: P&L
P&L CONDENSED CONSOLIDATED STATEMENT OF PROFIT Endúr Oceano BMO TOTAL Old Endúr 1 OR LOSS NOKm 1H 2020 1H 2020 1H 2020 1H 2020 3Q 2020 Operating revenue 184 153 225 562 62 Cost of sales (107) (81) (75) (263) Payroll expenses (64) (52) (52) (168) Other operating expenses (13) (16) (59) (88) Operating
Slide 23: Balance sheet
Balance sheet PROFORMA CONDENSED CONSOLIDATED Endúr - Proforma- Oceano TOTAL BMO STATEMENT OF FINANCIAL POSITION Reported adjustments NOKm 30-06-20 30-06-20 30-06-20 30-06-20 31-07-20 ASSETS Deferred tax asset 19 19 5 Intangible assets and goodwill 114 80 256 450 - Property, plant and equipment 45 4
Slide 24: Cash flow
Cash flow Endúr - CONSOLIDATED STATEMENT OF CASH FLOWS Reported NOKm YTD Q2 EBITDA 0 Change NWC (13) Other adjustments (5) Net cash from operating activities (17) Acquisition/sale of property, plant and equipment (2) Acquisition of subsidiary 1 Other adjustments (4) Net cash from investments activit