Endur Asa · OSL:ENDUR
Endur Asa — Debt Investor Presentation (January 2020)
35 slides from Endur Asa's debt investor presentation, Jan 22, 2020
Slide 1: Investor Presentation – NOK 75 million Senior Secured Bond Issue
Investor Presentation 22 January 2020 NOK 75 million Senior Secured Bond Issue
Slide 2: Update on Bond Structure
Update on Bond Structure The Issuer Group (Financed Group) in relation with the contemplated bond issue is now limited to the Maritime and Aquaculture segments of Endúr ASA (the Group). Updated forecasts from the Energy segment indicates an unsatisfactory uncertainty regarding future developments in
Slide 3: Important Information
Important Information General Information About this Presentation This presentation and any appendices hereto (the "Investor Presentation" or the “Presentation”) has been produced by Endúr ASA, a Norwegian public limited liability company Neither the Company nor the Manager or any of their represent
Slide 4: Summary of Risk Factors
Summary of Risk Factors SUMMARY OF RISK FACTORS Financial risks An investment in the Bonds involves a high level of risk. Several factors could cause the actual results, performance or achievements of the Company to be materially different • Cash flow and liquidity. The Group is exposed to various r
Slide 5: I. Transaction Summary
I. Transaction Summary II. Who we are and what we do III. Finance IV. Market Outlook & Growth Strategy V. Appendix Change is a Constant 5
Slide 6: Credit Highlights
Credit Highlights 2.0x 2019E leverage in ring-fenced Aqua and Maritime group • Endúr ASA (OSE: ENDUR, c. NOK 265m Mcap) was established through a reversed merger in February 2019 when several maritime segments was brought together to form a diversified service platform out of Western Norway. Leading
Slide 7: Summary of Key Terms
Summary of Key Terms Issuer: Endúr ASA Financed Group: The Issuer and all its Financed Subsidiaries from time to time (each a “Financed Group Company”). Financed Subsidiaries All of the Issuer's Subsidiaries excluding Endúr AAK AS, Endúr Energy Solutions AS, Endúr Industrier AS and Endúr PMAE AS. Gu
Slide 8: Legal Structure
Legal Structure Financed Group • Financed Group isolates Maritime Services and Aquaculture segments NOK 75m Senior Secured to create a strong funding platform. bond to be issued Endúr ASA NOK 6m Subordinated • Endúr ASA will provide management accounts for the Financed Group loan* on a quarterly bas
Slide 9: Transaction Summary
Transaction Summary 3yr NOK 75m Secured Bond in Aquaculture and Maritime Financing Group Transaction Overview Sources NOKm New Bond 75 • Endúr ASA is contemplating the issuance of NOK 75m sr. secured bond issue with net proceeds used towards; Uses o Refinancing of existing debt in Financing Group Re
Slide 10: Financial Summary & Guiding – Financed Group
Financial Summary & Guiding – Financed Group 2.0x Proforma Net IBD/ EBITDA 2019E Revenue Guiding EBITDA Guiding 3q19 Pro-forma Net IBD Revenues - Financed Group EBITDA - Financed Group Net IBD - Financing Group 400 35 2.0x Net IBD/ EBITDA 100 90 350 30 14 80 300 70 78 25 47 NOKm 60 NOKm NOKm 250 20
Slide 11: II. Who we are and what we do
I. Transaction Summary II. Who we are and what we do III. Finance IV. Market Outlook & Growth Strategy V. Appendix Change is a Constant 11
Slide 12: Management
Management Hans Petter Eikeland (CEO) Nils Hoff (COO) Hans Petter Eikeland (1959) was appointed chairman for Endúr ASA as Nils Hoff has extensive experience across a wide range of businesses. He from 14 November 2017 after serving as CEO since August 2015. was appointed as CFO of Endúr ASA on 1 July
Slide 13: History
History Transformation with a firm plan for growth and diversification 2015 2016 2017 2018 2019 2020 New management and new Acquisition of Acquisition of Merger of Endúr Ringfencing Aquaculture strategy targeting turnover of AAK Energy Sjøsterk II AS, Fabricom AS, and Maritime segments NOK 1 billion
Slide 14: From shipyard to industrial holding company
From shipyard to industrial holding company Endúr ASA Energy Maritime Aquaculture Endúr Energy Solutions AS Shipyards Endúr Maritime AS Endúr Sjøsterk AS Endúr Industries AS Endúr AAK AS 100% 50% 50% Historic revenue Revenues per segment YTD 2019 Change is a Constant 14
Slide 15: Maritime – Financing Group
Maritime – Financing Group One stop shop provider of ship maintenance, service and engines About Recent • Engine workshop with specialist expertise in • Awarded a NOK 750m (incl. Options) high-speed diesel engines framework contract by the Norwegian Armed Forces Logistics Organization (FLO) • Inspec
Slide 16: Aquaculture – Financing Group
Aquaculture – Financing Group The leading supplier of fully integrated concrete feed barges About Recent • Leading supplier of fully integrated concrete • Awarded a NOK 50m contract with one of feed barges for the aquaculture industry in the largest listed fish farmers in Norway for Norway. the cons
Slide 17: III. Finance
I. Transaction Summary II. Who we are and what we do III. Finance IV. Market Outlook & Growth Strategy V. Appendix Change is a Constant 17
Slide 18: P&L Per Segment - Excluding STRAUME
P&L P&L NOK'000000 P RO Q1 2018 P RO Q2 2018 Q3 2018 P RO Q4 2018 P RO P RO FY 2018 ACT Q1 2019 ACT Q2 2019 Q3 2019 ACT Salgsinntekt 64 56 50 72 241 87 93 60 Varekostnad (23) (18) (17) (48) (105) (53) (60) (36) Lønnskostnad (39) (34) (32) (27) (132) (22) (20) (16) Andre driftskostnader (6) (6) (7) (
Slide 19: Current Frame Agreements
Current Frame Agreements New contracts highlight close relationship with blue chip counterparties 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Contract value (excl. Endúr company Segment Client Type of work Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q
Slide 20: Balance Sheet – Total Group and Financing Group
Balance Sheet – Total Group and Financing Group INTERCOM CONDENSED CONSOLIDATED STATEMENT OF PROFORMA USE OF TOTAL FINANCING PANY ENERGY GROUP ELIMINATIONS AQUACULTURE MARITIME ENERGY OTHER FINANCIAL POSITION Financing Group PROCEEDS SEGMENTS ENERGY NOK'000000 YTD Q3 2019 YTD Q3 2019YTD Q3 2019YTD Q
Slide 21: Cash Flow – Total Group
Cash Flow – Total Group CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS ACTUAL ACTUAL ACTUAL NOK'000000 Q1 2019 Q2 2019 Q3 2019 CASHFLOW FROM OPERATING ACTIVITIES Profit/loss for the period 3 4 (0) Adjustments for: Tax expense / Tax income 1 0 0 Depreciation, amortisation, impairment 3 4 4 Items clas
Slide 22: IV. Market Outlook & Growth Strategy
I. Transaction Summary II. Who we are and what we do III. Finance IV. Market Outlook & Growth Strategy V. Appendix Change is a Constant 22
Slide 23: Maritime – The Norwegian Armed Forces
Maritime The Norwegian Armed Forces Extensive expertise related to ship technical maintenance and implementation of complex maritime projects on the various vessels of the Armed Forces Comprehensive history of service and maintenance on various engine installations used by the Armed Forces in both t
Slide 24: Maritime – One Stop Shop – Ship Maintenance and Service
Maritime One Stop Shop – Ship Maintenance and Service FACILITIES ONE STOP SHOP The main facilities for Maritime services • Ship maintenance and service with are located at Laksevåg in Bergen and expertise in: hull, welding, structure, include pipes, electrical, automation, hydraulics • a dry dock wi
Slide 25: Maritime – One Stop Shop – Engines
Maritime One Stop Shop – Engines • Engine workshop with specialist expertise in high-speed diesel engines • Engine test center for condition assessment and test driving • Sales and service representative for Marine Jet Power AB • The assignments are carried out at the customer’s location or at Endúr
Slide 26: Maritime – Strategically located in Norway's shipping center
Maritime Strategically located in Norway's shipping center The Norwegian Maritime Industry PAX Fishing vessels Well boats • According to Menon Economics the total value creation from the maritime industry in Norway is close to NOK 190 billion and the industry employees approx. 100,000, hereunder mak
Slide 27: Aquaculture – Fully integrated concrete feed barges
Aquaculture A leading supplier of fully integrated concrete feed barges for the aquaculture industry Delivering an integrated feed solution to the fish farming industry Concrete feed barges • Sjøsterk delivers core infrastructure to the growing aquaculture industry as it continues its: • Expansion t
Slide 28: Aquaculture – Proven business concept
Aquaculture Proven business concept with rapidly growing position among Norwegian fish farmers Facilities Selected references • Centrally located at the industry area Stamneset in Bergen Sør, 10 minutes from Bergen Lufthavn • Dry-dock with size 22m x 90m, with parallel capacity for production of up
Slide 29: Aquaculture – One feed barge per 2,000 ton of salmon
Aquaculture Roughly one feed barge is needed per 2,000 ton of salmon production Feed Barges in Norway Feed Barges RoW Why concrete? • In 2018 c. 1.3bn tons of Atlantic salmon were • Scotland: At present there are over 200 sewater • New environments – new requirements: The produced in Norway, creatin
Slide 30: V. Appendix
I. Transaction Summary II. Who we are and what we do III. Finance IV. Market Outlook & Growth Strategy V. Appendix Change is a Constant 30
Slide 31: Board of Directors / Governance
Board of Directors / Governance Board of Directors Corporate Governance Chairman Rune Skarveland (f 1972) …Corporate Governance structure is based on the Norwegian Code of Practice for Corporate Governance (the “Code”), issued by the Norwegian Corporate Governance Board Member Bente Stangeland (f 19
Slide 32: Share- and shareholder information
Share- and shareholder information Holding Shareholder Comment % Ownership (# of shares) Controlled by Chairman Handeland Industri AS 59,325,000 27.90 (Skarveland family) Artemes Group AS MD, Endúr Energy Solutions (34%) 37,572,500 17.67 Brian Chang Holdings Limited 28,918,110 13.60 NOK/sh – 1yr Con
Slide 33: Company Video
Company Video https://vimeo.com/353981595/05534c6881 Change is a Constant 33
Slide 34: Appendix – Risk Factors
APPENDIX RISK FACTORS An investment in the Bonds involves a high degree of financial risk. Potential investors should carefully consider all information in this Presentation, including the risks described below, before deciding to make an investment in the Bonds. If the risks materialise, individual
Slide 35: Appendix – Market Risks
APPENDIX 1.2 Market risks 1.2.1 Market volatility The Group's results of operations could be negatively affected by demand for, and potential oversupply of, the products and services delivered by the Group, which again is affected by activity in the relevant industries, including the maritime, aquac