Hunting Plc · LSE:HTG
Hunting — Merger or Acquisition (June 2025)
27 slides from Hunting's merger presentation, June 2025
Slide 1: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE Acquisition of Flexible Engineered Solutions (Group) Holdings Limited June 2025
Slide 2: Important Notice
Important Notice By attending the meeting where this presentation is made, or by reading the presentation slides, you acknowledge and agree to comply with the following restrictions. This document and the accompanying verbal presentation (together the "Presentation”) have been prepared by Hunting PL
Slide 3: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE Jim Johnson, Chief Executive
Slide 4: FES located in Ashington, UK with manufacturing and test facilities
• Located in Ashington, UK with manufacturing and test facilities - 35,000 sq. ft. facility and 6,000 sq. ft. test centre, with over 40 years’ experience • £50m consideration to be paid out of existing cash balances • Acquired from management team and founders • 46 personnel joining Group on complet
Slide 5: Compelling strategic rationale in line with Hunting 2030 Strategy
Compelling strategic rationale in line with Hunting 2030 Strategy 1. Significant bundling /cross-selling opportunities for Hunting’s Spring and Enpro businesses given complementary portfolio 2. Access to proprietary fluid transfer systems and solutions across oil and gas and renewable energy end-mar
Slide 6: Source: Wood Mackenzie – June 2025
Source: Wood Mackenzie – June 2025 6
Slide 7: Hunting Subsea performance
140 • Subsea delivering strong growth via Spring 120 business – particularly via ExxonMobil • OCTG delivered strong growth, particularly 100 within international markets • AMG delivered improving margins post- asdividends 80 • 2023 special impact of COVID receded • special dividends $m Ongoing cost
Slide 8: Subsea Intervention & Decommissioning Services
Subsea Intervention & SURF & Fluid Transfer Technology Decommissioning Services Subsea Intervention & • Titanium SURF Stress Joints Technology • Hydraulic Intervention Services Decommissioning • • Steel Stress Titanium Joints Stress Joints • Decommissioning Tooling • Hydraulic Intervention • Steel T
Slide 9: Subsea Intervention & Decommissioning Services; SURF & Fluid Transfer Technology
Subsea Intervention & SURF & Fluid Transfer Technology Decommissioning Services • Titanium Stress Joints • Hydraulic Intervention • Steel Stress Joints • Decommissioning Tooling • Subsea Pumping • Diverless Bend Stiffener Connectors • Turret Systems • Fluid Transfer Swivels • Stab Plates • Weak Link
Slide 10: Flexible Engineering Solutions
PRECISION ENGINEERING FROM SUBSEA TO SPACE FLEXIBLE ENGINEERING SOLUTIONS Dane Tipton, MD- Subsea Technologies
Slide 11: 25+ year old UK based company with proven track record
• 25+ year old UK based company with proven track record in the design, manufacture and supply of products to global oil and gas and offshore renewable energy markets • Floating production, storage and offloading vessel (“FPSO”) and Subsea Distribution System (“SDS”) focused product offering complem
Slide 12: Fluid Handling, Subsea, Marine Services
Fluid Handling • Diverless Bend Stiffener Connectors • Turret Systems • Fluid Transfer Swivels • Pressure Balanced Weak Links • Hydraulic/Electric/Fibre Stab Plates Subsea • Hot Stabs and Receptacles • Pig Launchers & Receivers • Subsea Control Panels • Pipeline Equipment • Subsea Valves Marine Serv
Slide 13: FES deployed systems
FES deployed systems Conventional oil and gas basins Unconventional oil and gas basins 13
Slide 14: Revenue by customer 2024
• Majority of revenue derived from outside the UK Revenue by Customer – 2024 • Long-term relationships with blue-chip customers, combined with large, multi-year projects, provides high visibility Seatrium 11% • Balanced product portfolio across range of categories 2% TFMC 2% 31% Baker Hughes 3% Talo
Slide 15: Strong mix of historical customers aligned with upcoming project work
Strong mix of historical customers aligned with upcoming project work Growing list of renewables/ offshore wind-related customers Product line aligns with Hunting’s market approach to OEMs 15 15
Slide 16: Future growth opportunities through compelling business synergies
Future growth opportunities through compelling business synergies • Bundling options with Hunting’s SDS & SURF product lines • Leveraging Hunting’s international footprint • Gulf of Mexico, South America, and Asia Pacific • Enhanced brand recognition • Turret Systems • Hyd./Elect./FO Stab Plates • W
Slide 17: Stafford, Spring, Enpro and FES product bundling
STAFFORD SPRING ENPRO FES • Metal Seal Hydraulic Couplings • Titanium / steel stress joints • Flow access modules • Bend stiffener connectors • Production Control Valves • Hydraulic intervention systems • Turret systems & fluid swivels • Chemical Metering Valves • AOR decommissioning • Subsea distri
Slide 18: Financials
PRECISION ENGINEERING FROM SUBSEA TO SPACE FINANCIALS Bruce Ferguson, Finance Director
Slide 19: Strong margin profile and robust order book
• Strong margin profile Sales order book - £m • Robust order book and bid pipeline - > £100m pipeline at 400 50% probability of conversion 350 • Strong focus on project profitability 300 • Low overhead given outsourced manufacturing model and focus on system design and engineering and testing 250 •
Slide 20: FES financial information — Income Statement
FES financial information — Income Statement (UK GAAP - unaudited) 2024 2023 2022 £m — Margin £m Margin £m Margin Revenue 31.3 44.8 25.1 Other income 0.1 0.1 0.1 Gross profit 8.1 26% 12.8 29% 6.2 25% EBITDA 6.2 20% 11.2 25% 4.8 19% Adjusted EBITDA* 6.7 21% 8.5 19% 7.0 28% Profit before tax 6.1 19% 1
Slide 21: FES financial information — Balance Sheet
FES financial information — Balance Sheet (UK GAAP - unaudited) Property, plant and equipment Working capital Taxation Other net assets Total cash and bank Net assets Grvnrnc 31 December 2024 31 December 2023 £m £m 0.2 0.3 12.4 15.8 (1.3) (2.3) 4.7 4.8 17.1 11.0 33.1 29.6
Slide 22: Growth outlook to 2030
01 Growth through a compelling product, technology and manufacturing platform supported by strong IP and know-how 02 Revenue and EBITDA progress to be delivered via organic and inorganic paths, including c.$350m of acquisition-related revenue by 2030 03 Strong revenue growth outlook to 2030, targeti
Slide 23: Capital allocation: invest, dividends, M&A, distributions
01 02 03 04 Invest in Dividends Value accretive Additional the business Progressive M&A Shareholder Capex and dividend policy Disciplined Distributions investment in approach to valuation organic growth Strong balance sheet and liquidity resilient to 2025 and beyond 23 23
Slide 24: Summary
PRECISION ENGINEERING FROM SUBSEA TO SPACE SUMMARY Jim Johnson, Chief Executive
Slide 25: Summary of acquisition rationale
• Complementary fit extending and augmenting existing subsea offering • Significant cross selling opportunities • Strong outlook and high visibility out to 2035 despite current macro uncertainty • Mission critical, proprietary solutions, which command strong margins • Diverse customer base selling i
Slide 26: Questions & Answers
PRECISION ENGINEERING FROM SUBSEA TO SPACE QUESTIONS & ANSWERS
Slide 27: Gaunrnc
Gaunrnc