Slide 1: H1 2022 Results Presentation
H1 2022 Results Presentation HY 2022 Results (LON:TGP) 13 June 2022 Page 1
Slide 2: Disclaimer
Disclaimer This presentation (Presentation) is issued by Tekmar Group plc (Company) for information purposes only. This Presentation, its contents and any information provided or discussed in connection with it may not be reproduced, redistributed or passed on, directly or indirectly, to any other p
Slide 3: Presentation Team and Agenda
Presentation Team and Agenda Alasdair MacDonald Agenda Chief Executive Officer • Results Overview, CEO Perspectives & KPIs • Financial Review • Market Overview • Operational Review Derek Bulmer Chief Financial Officer • Summary HY 2022 Results (LON:TGP) 13 June 2022 Page 3
Slide 4: Results Overview, CEO Perspectives and KPIs
Results Overview, CEO Perspectives and KPIs (LON:TGP)
Slide 5: H1 2022 Results Key headlines
H1 2022 Results Key headlines £(1.8)m • Financial performance reflects operating environment Adjusted - Project execution delays continuing EBITDA - Operational focus to manage inflationary and supply chain pressures • Market trajectory starting to improve - Landmark contract awards £20.1m - Healthy
Slide 6: CEO Perspectives
CEO Perspectives • Business as usual – we remain focused on our strategy to restore profitable growth and maintain Tekmar’s market leadership position • Continued progress in embedding engineering-led solutions at the core of the business - we see the industry increasingly moving to more technically
Slide 7: Key Performance Indicators
Key Performance Indicators 6M ending 6M ending 6M ending 6M ending 6M ending 6M ending 30-Sep-19 31-Mar-20 30-Sep 20 31-Mar-21 30-Sep-21 31-Mar-22 KPI (£m) HY(1) 2020 HY(2) 2020 HY(1) 2021 HY(2) 2021 HY(3) 2021 HY22m Revenue £17.1 £23.8 £15.2 £13.9 £17.9 £13.0 Adj EBITDA(1) £2.0 £2.7 £0.8 £(1.1) £(1
Slide 8: Financial Performance
Financial Performance (LON:TGP)
Slide 9: HY22 Results – Summary Income Statement
HY22 Results – Summary Income Statement 6 months to 6 months to Revenue March 22 March 21 • Revenue resilience in the face of protracted effects of the pandemic leading HY22 HY(2) 21 to customer delays in project execution dates. £m £m Revenue 13.0 13.9 Gross profit • Reduction in GM is as a result
Slide 10: HY22 Results – Summary Balance Sheet
HY22 Results – Summary Balance Sheet March 22 March 21 Trade & other receivables: HY22 HY(2) 21 • Movement primarily reflects lower revenues £m £m • Relatively high level of debtors and accrued income reflects contracts where Fixed Assets 5.4 5.4 project milestones were towards the end of the period
Slide 11: HY22 Results - Summary Cash Flow
HY22 Results - Summary Cash Flow Period-end cash position includes a £5.2m customer overpayment (subsequently repaid). Available cash net of this overpayment was £5.1m. This includes the net proceeds of £3.7m raised in the equity fundraise earlier in the year and draw down of bank facilities of £5.7
Slide 12: Market Overview
@lekmar Group plc Market Overview
Slide 13: Why Offshore Wind, Why Tekmar?
Why Offshore Wind, Why Tekmar? Last 32 Years The Global Opportunity: Net-Zero by 2050 c. 53GW (1) Offshore Wind is fundamental to securing this energy transition By 2030 Tekmar – a key part of the industry response • • Acceleration in Offshore Wind Energy transition and the role to play of Oil & Gas
Slide 14: Offshore Wind Market Growth
Offshore Wind Market Growth Our core market continues to strengthen supported by global political commitment to net-zero, with offshore wind to play a vital role in accelerating the global energy transition(1) • Global capacity forecast to reach 258GW (installed or underway) by 2030, from a Annual c
Slide 15: Offshore Wind Market Outlook to 2030
Offshore Wind Market Outlook to 2030 Project visibility on over 300 projects for construction by 2030 USA Other 1GW 11GW USA Asia Asia* 28GW 25GW 9GW 25GW under 180GW entering 53GW fully Europe construction construction commissioned(1) 85GW / FID made(1) by 2030(1) Europe Asia Europe 28GW 56GW 15GW
Slide 16: Recent Landmark Activity in Offshore Wind
Recent Landmark Activity in Offshore Wind Energy markets transforming and countries moving towards net-zero economies enabled by offshore wind US Development (East & West Coast) Map of US East Coast Development (6) Scotwind Awarded Sites(5) • US targeting 30GW of offshore wind by 2030 • Jan 2022: Hi
Slide 17: Subsea Cable Outlook
Subsea Cable Outlook Deployment of offshore wind farms, coupled with ongoing expansion in adjacent offshore markets, will see a sixfold increase in global demand for subsea power cables, Tekmar’s key service and technology application, over the course of this decade (1) • Estimated €45bn global spen
Slide 18: Offshore Wind O&M Market
Offshore Wind O&M Market Steady growth and sizable opportunity in the O&M/OPEX market offers significant growth potential for the Group, leveraging our existing technologies and customer relationships. • Global offshore wind O&M market valued at £11.8bn per year by 2030 Estimated Global Offshore Win
Slide 19: Floating Wind Market
Floating Wind Market Floating offshore wind is rapidly emerging as a significant global opportunity and will be a key part of the future offshore renewable energy mix. Tekmar is already active in this optimistic market which has recently been bolstered by support from both government and developers.
Slide 20: Other Infrastructure
Other Infrastructure Adjacent offshore markets remain an important part of Tekmar’s strategy. We are pleased to see growth in these markets supported by a strong recovery in the price of oil driven by covid easing and a desire to reduce European dependency on Russian exports • Brent spot price has s
Slide 21: Summary of Market Outlook
Summary of Market Outlook The global offshore wind market, the Group’s core market, continues to grow with commitments to Net-Zero and energy security key catalysts • Global capacity is forecast to reach over 258GW (installed or underway) by 2030, from a commissioned capacity of 53GW today, with cur
Slide 22: Operational Review
Operational Review (LON:TGP)
Slide 23: Operational Highlights
Operational Highlights • Our recent contract awards highlight diversification, regional expansion and the value of our integrated offering • continued work in the O&M sector, including additional remedial engineering works for various customers • contract award for Dogger Bank offshore wind farm • i
Slide 24: Dogger Bank Contract Award
Dogger Bank Contract Award We have partnered with DEME Offshore for the 3.6GW Dogger Bank Wind Farm, located in the UK, and set to become the world’s largest offshore wind farm by capacity • Initial contract award covers the first two phases of the project, Dogger Bank A and B (2.4GW combined), with
Slide 25: Operational Focus - Offshore Wind O&M
Operational Focus - Offshore Wind O&M • Awarded significant O&M contract in Q1 2021 for UK OWF • Scope: • Analysis of 3rd party CPS and cable failure (AEL) • Supply of retrofit Dynamic Bend Stiffener (DBS) assemblies (TEL) • Supply of DBS installation tooling (SIL) • Delivered two installation tools
Slide 26: Our Group Wide Technology Road Map Supports Our Organic Growth Plan
Our Group Wide Technology Road Map Supports Our Organic Growth Plan We are investing in innovation and applied engineering to capitalise on our growth Done l Ongoing l Planned opportunities Hadrian AgileDat Super-Mat Grouting Division Wear Testing Condition Monitoring Advanced ABR Predictive Wear Re
Slide 27: Our Business Improvement Initiatives
Our Business Improvement Initiatives We are embedding a range of better business practices across the Group Done Ongoing Planned • Sales strategy focused on margins rather than • People strategy, comms & engagement • Technical and Engineering led solutions volume • Standardised engineering processes
Slide 28: 5 Year Strategic Plan
5 Year Strategic Plan Our strategic value creation roadmap builds on our strong foundations - our industry leadership and expertise and our innovative, technology-led solutions and services - in attractive end-markets which are growing, maturing and evolving Leverage market mega-trends in offshore w
Slide 29: Growth Journey
Growth Journey 01 Historic 02 Current 03 Future 2007 – 2020 Building the foundation 2020 – 2022/23 Transition for growth 2023– 2026 Accelerated growth • Development and launch of a pioneering • Refreshed strategic plan implemented technology into the new emerging • Market recovery and structural gro
Slide 30: Summary
@lekmar Group plc Summary
Slide 31: Summary
Summary Alasdair MacDonald, CEO, commented: “We continue to see 2022 and 2023 as transition years for Tekmar as we stabilise the business through the residual impacts of the pandemic and drive our business improvement programs to recover a sustainable level of profitability and cash generation for t
Slide 32: Appendix
Appendix (LON:TGP)
Slide 33: Innovative Marine Technology
Innovative Marine Technology Working together to provide leading technology and services to the global offshore energy markets HY 2022 Results (LON:TGP) 13 June 2022 Page 33
Slide 34: Global Reach
Global Reach HY 2022 Results (LON:TGP) 13 June 2022 Page 34
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Slide 36: * Bend
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Slide 37: Remedial Solutions
Remedial Solutions Design & manufacture — of bespoke back deck Monitoring ‘equipment & subsea tooling ‘Smart Sensors for cable and to deploy & install remedial repair condition monitoring, cable solutions. Rock Placement Units & Mattresses Universal Cable Joints Retrofit Bend Stiffeners CPS Clamps T
Slide 38: Vision & Values
Vision & Values Vision Key Enablers Our vision is to be the leading provider of 1. Our core values technology and services to the global offshore 2. Growing global demand energy markets 3. Strong brand and outstanding reputation 4. Balance sheet 5. Our core strategy Key Objectives 1. Sustainable Gro
Slide 39: tekmargroup.com
Tekmar Group plc Innovation House Centurion Way Darlington DL3 0UP t. +44(0) 1325 379520 tekmargroup.com e. info@tekmar.co.uk HY 2022 Results (LON:TGP) 13 June 2022 Page 39