Expro Group Holdings N.v. · NYSE:XPRO
Expro — Q2 2023 Earnings Presentation
21 slides from Expro's earnings presentation, Jul 27, 2023
Slide 1: Expro Group Holdings N.V. Q2 2023 Highlights
Expro Group Holdings N.V. Q2 | 2023 Highlights NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Get to Know XPRO
Get to Know XPRO 3 $1,422m COUNTRIES EMPLOYEES Asia Pacific Market Capitalization1 15% North & Latin Middle East America North Africa 15% BY 37% REGION STRONG CASH DEBT FREE Enterprise Value2 FLOW OUTLOOK BALANCE SHEET with significant available liquidity Europe & Sub- Saharan Africa Well Interventi
Slide 4: Our Long-Term Value Creation Strategy
Our Long-Term Value Creation Strategy Maximize Expected Maintain Increase Margins Focus on Multi-Year Upcycle Through-cycle Resiliency and Free Cash Flow Shareholder Returns Well positioned to capture Broad portfolio of value-added Improving business mix Achieve sustainable significant upside servic
Slide 5: Q2 2023 Expro Highlights
Q2 2023 Expro Highlights Revenue was $397m, up 17% quarter-over-quarter and up 27% year-over-year; customer activity levels have continued to improve across all segments and geographies. Adjusted EBITDA was $72m, up 71% quarter-over-quarter and up 40% year-over-year. Q2 2023 Adjusted EBITDA margin w
Slide 6: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacific Intervention (APAC) & Integrity $65 $54 North & Latin America Q2 2023 (NLA) Q2 2023 Well Middle East Construction North Africa Revenue1 $135 Revenue 1 (MENA) Well Flow by Area of $144 $59 by Geographic Management Market Capability $151 $397m
Slide 7: Q2 2023 Regional Highlights
Q2 2023 Regional Highlights Middle East & North Africa Expro’s production optimization solution improved Middle East & North Africa In Saudi, we completed first closed operational efficiency and made a significantly loop return in descaling operations. positive commercial impact by decreasing the Th
Slide 8: Customer and Technology Highlights
Customer and Technology Highlights First steam for Success with First deployment Record-breaking Non intrusive, low geothermal Subsea Riserless of electric operation for digital carbon footprint customer Well Intervention powered slickline technology, Centri- testing solution for solution in unit in
Slide 9: Q3 2023 and full-year 2023 outlook
Q3 2023 2023 Management expects Q3 revenue to Based on a positive activity outlook, we are reflect ~20% year-on-year growth, maintaining our 2023 guidance, with revenues with Adjusted EBITDA margin in the between $1,450m and $1,550m, Adjusted 20-22% range EBITDA between $275m and $325m and Adjusted
Slide 10: Appendix: Investor resources
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 11: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m) Revenue up 65% Adjusted EBITDA Adjusted EBITDA and Adjusted EBITDA since Q4 2020 up ~2.75x Margin excluding LWI-related mobilization, $397 start-up and commissioning costs2 since Q4 2020 $374 $75 $348 $342 $351 $70 $72 $334 $33
Slide 12: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m) Capital Expenditures ($m) $99 $73 $66 $52 $44 $40 $40 $41 $37 $37 $36 $33 $33 $31 $31 $28 $29 $29 $26 $27 $22 $20 $21 $22 $21 $19 $19 $17 $11 $10 $8 $2 $2 -$7 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4
Slide 13: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Total Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $397 $397 $374 $374 $351 $351 $54 $348 $342 $65 $348 $342 $334 $339 $42 $334 $339 $326 $56
Slide 14: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 45% 44% 42% 43% 44% 45% 43% 43% 50% $397 41% 42% 42% 41% 42% 41% 42% $60 38% 40% 37% $374 40% $351 $50 $348 $342 $334 $339 30% $326 $330 $40 $313 $314 $144 $30 20% $139 $296 $284 $280 $20 $138 10% $156
Slide 15: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) 43% $70 45% 50% $60 40% 41% 45% 42% 45% 44% 43% 44% 43% 43% 39% 38% 36% 38% 39% 38% 34% 42% 42% 42% 42% 38% 38% 41% 41% 41% 45% 36% 36% 37% 40% $60 40% 34% 35% 38% 37% $50 33% 40% 35% $50 35% $40 30% 30% $40 25%
Slide 16: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $40 35% 30% 30% 26% 25% $40 27% 27% 30% $35 25% 26% 30% $35 $30 23% 23% 22% 21% 21% 21% 25% 21% 25% $30 19% 19% $25 18% 18% 18% $25 16% 15% 15% 15% 20% 17% 16% 18% 20% 15% 14% $20 15% 15% 14% $20
Slide 17: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Product Line and central costs TTM support costs down 3% Geography-based support costs with run-rate $103 $102 Aggregate support $101 $101 revenue up 18% costs since
Slide 18: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) + $2,295 + $2,271 $2,178 $1,927 $1,878 $1,744 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Revenue from backlog, Revenue from backlog, re-estimations and other re-estimations and other Copyright 2023 Expro. All right
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q2 2023 31-Mar-19 30-Jun-19 30-Sep-19 31-Dec-19 31-Mar-20 30-Jun-20 30-Sep-20 31-Dec-20 31-Mar-21 30-Jun-21 30-Sep-21 31-Dec-21 31-Mar-22 30-Jun-22 30-Sep-22 31-Dec-22 31-Mar-23 30-Jun-23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24
Slide 20: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM ($ in millions) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351 $ 339
Slide 21: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended 31-Dec-21 31-Mar-22 30-Jun-22 30-Sept-22 31-Dec-22 31-Mar-23 30-Jun-23 Net Income (loss) $ (91) $ (11) $ (4)