Hunting Plc · LSE:HTG
Hunting — Pareto Securities Conference 2024
28 slides from Hunting's conference presentation, September 2024
Slide 1: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE
Slide 2: Disclaimer
Disclaimer 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 PLC (the
Slide 3: Group financial performance 2020 - 2024e
Group financial performance 2020 - 2024e* Leadership in precision components and systems design – 1200 180.0 with strong IP protection and coverage. 160.0 1000 EBITDA - $m 140.0 Revenue - $m 800 120.0 100.0 600 80.0 400 60.0 Energy and Energy Transition remain resilient, strong growth 200 40.0 20.0
Slide 4: Perforating Systems, Subsea, OCTG, Advanced Manufacturing, Energy Transition
Oil and gas Non-oil and gas PERFORATING SUBSEA OCTG ADVANCED ENERGY SYSTEMS MANUFACTURING TRANSITION • Market leading perforating • High performance • Three key proprietary • Precision engineered • Key offering includes: components and systems products and solutions to premium and semi-premium produ
Slide 5: Global sites
14 7 sites sites Conventional oil and gas basins 4 sites Unconventional oil and gas basins 5
Slide 6: OCTG and Subsea
OCTG Subsea • Three proprietary connection families covering all resource developments: • Three distinct businesses, that provide technology and products to accelerate global SEAL-LOCK ; WEDGE-LOCK ; and TEC-LOCK . offshore field developments and project cash flows. • ‘Virtual Mill’ concept providin
Slide 7: Perforating Systems and Advanced Manufacturing
Perforating Systems Advanced Manufacturing • Proprietary perforating technologies including integrated gun systems, energetics Recent • developments Focus of AMG is on high-precision engineering and high-value electronic PCBs charges, detonation cord, jet cutters and control instrumentation. • Launc
Slide 8: $60 million of contracts secured for licenced OOR technology
• $60 million of contracts secured for licenced OOR technology. • Technology to be deployed onto UKCS and internationally. • North Sea operators looking up to five years of field treatments. • Good gross margins attached to technology and revenue. • International interest extends to Middle East and
Slide 9: Energy transition and Advanced Manufacturing initiatives
• Strong, long-term opportunities in geothermal and carbon capture projects. • Advanced Manufacturing initiatives driving Hunting’s non-oil and gas sales. • Strategy is to be a key supplier of premium connections, which are qualified • Strong non-energy order book provides a platform for further rev
Slide 10: India OCTG opportunity
• API licence received in May 2024 – positions JV to tender for more work across all activities in India. • Addressable OCTG market market c.$300-400 million, million c.$300-400 based per on management’s annum, based estimates on management’s and earlyestimates mover advantage. and early mover advan
Slide 11: A Spotlight on Subsea Technologies
A SPOTLIGHT ON SUBSEA TECHNOLOGIES
Slide 12: Subsea: Stafford, Spring, Enpro
Subsea revenue 2020 – 2024e ($m) - Initial market entry in 2009 - Segment now comprises three major Customer benefits 160 businesses: - Faster first oil 140 c.140 - Capex reductions • Stafford 120 100 - System level flexibility • Spring 80 98.6 - Simplified field management • Enpro 60 69.0 - Enhance
Slide 13: Subsea product portfolio
SURF Technology • Titanium & Steel Stress Joints Intervention & Decommissioning Services • 10k & 15k Hydraulic Intervention • AOR Decommissioning Controls Technology – Components • Metal Seal Couplings • Production Control Valves • Chemical Metering Valves Tieback & Production Technology • Flow Acce
Slide 14: Metal seal couplings and valves
Metal Seal Hydraulic Couplings • Technology leader – used by all Tier 1 OEMs • 38 years of field history • +2 million installations globally • Commanding market position with high barriers to entry and low risk of substitution Production Control Valves • Broad range of usage: intervention/workover a
Slide 15: Titanium stress joints
• Sole supplier of TSJs for offshore riser applications with 28-year track record of success. • No FPSO draft constraint (TSJ can operate above water). • Eliminate HSE risk and cost associated with personnel near the splash zone during installation and periodic inspections. • Increased component rel
Slide 16: Flow access module (FAM)
Proprietary Technology Flow access module – FAM Faster, lower cost Subsea tiebacks Complements standard Subsea Production System Hardware enabling project specific technologies Defer capex No need to commit to technology on day one Removes long lead technology off critical path Growing Success De-ri
Slide 17: Attic Oil Recovery environmental protection solution
Environmental Protection Unique Solution Patented Anchor Hub 100% Market share for Attic Oil Recovery application Compact Design Simplicity Ability to operate from smaller lower cost vessels Pumping and monitoring solutions with minimal deployed equip 17
Slide 18: Subsea investment highlights
01 Significant incremental market share as we expand our 02 Strong IP and unique customer relationships across leadership position through organic and inorganic multiple subsea arenas provides defensible competitive growth. advantage, which supports above market revenue growth. 03 Track record, exec
Slide 19: Hunting PLC Financial Overview and 2030 Strategic Framework
HUNTING PLC FINANCIAL OVERVIEW AND 2030 STRATEGIC FRAMEWORK
Slide 20: Revenue, EBITDA, EPS and dividend 2021-2023
Revenue: oil and gas v non-oil and gas - $m EBITDA - $m 75.9 900 110 800 47.6 853.2 90 102.4 700 600 678.2 70 37.6 500 50 400 484.0 49.3 300 30 200 10 -0.4 100 Revenue from non-oil and gas -10 0 Revenue from oil and gas 2021 2022 2023 2021 2022 2023 EBITDA and operating profit for 2023 have been res
Slide 21: EBITDA breakdown and order book by product group
EBITDA breakdown by product group - $m Record order book of $700m by product group - $m 100% 1.3 3.6 5.5 90% 4.5 80% 3.2 17.8 70% 13.7 60% 3.2 50% 40% 30% 32.5 24.1 20% Other Manufacturing Advanced Manufacturing 10% Subsea Perforating Systems 0% OCTG H1 2023 H1 2024 21
Slide 22: 2024 guidance
2024 guidance EBITDA EBITDA margin Effective tax rate $134-138m 12-13% 25-28% Free cash flow conversion (post capex) Total cash and bank / (borrowings) ——— 50% $30-40m = —— _Z __ = = es
Slide 23: 2030 strategic framework targets
01 Revenue projected to grow to 02 EBITDA margins increasing to c.15% 03 c.$750m free cash flow generation by c.$1.3 billion p.a. by 2025 driven by by 2025 with further progression 2030. current market momentum, and to by 2030. c.$2 billion p.a. by 2030. 04 05 06 Financial discipline to drive cash S
Slide 24: Hunting PLC ESG and Sustainability
HUNTING PLC ESG AND SUSTAINABILITY
Slide 25: ESG metrics: safety, renewable energy, emissions
Skilled employees driving quality and HSE Continued improvement in key ESG metrics driving client loyalty Manufacturing reject rate Renewable energy purchased 60% 0.25% 0.20% 50% 0.20% 50% 40% 0.15% 0.13% 0.13% 30% 0.10% 20% 23% 20% 10% 16% 0.05% 12% 8% 0% 0.00% 2019 2020 2021 2022 2023 2030 target
Slide 26: Workforce and board diversity
Tenure – average years of service Workforce diversity Workforce engagement 16 Male 14 25% Female 12 10 8 75% 6 4 2 Board diversity* 0 Male Workforce Management Female 50% 50% Voluntary attrition 16% 14% *17 April 2024 12% Management diversity 10% Male 8% 32% 6% Female 4% 2% 68% 0% 2018 2019 2020 202
Slide 27: Strong period of delivery
Strong period of delivery across Hunting’s diversified energy portfolio. Improved FCF generation in H2. Gsunrnc Improvements to operating efficiencies driving higher margins. Energy Transition sales increasing across the Group. Offshore/international markets to continue to deliver growth. Guidance o
Slide 28: Precision Engineering from Subsea to Space
PRECISION ENGINEERING FROM SUBSEA TO SPACE