Akastor Asa · OSL:AKAST
Akastor Asa — Q4 2023 Earnings Presentation
38 slides from Akastor Asa's earnings presentation, Feb 14, 2024
Slide 1: Quarterly presentation – Akastor ASA 4Q 2023
4Q 2023 Quarterly presentation – Akastor ASA February 14, 2024 Akastor © 2024
Slide 2: 2023 highlights
2023 highlights ― 2023 adj. EBITDA of USD 132 million, up 30% versus 2022. Company refinanced with USD 200 million bond, a key enabler for a potential future liquidity event for HMH. DRU ― Arbitration process near complete, waiting for award arbitration ― AGR sold to ABL, with carve out of investmen
Slide 3: 4Q 2023 Highlights
4Q 2023 Highlights NET CAPITAL EMPLOYED 1) NOK million, 31 December 2023 Book value per share ▪ EBITDA (adj.) of USD 44 million in quarter, 49% increase 11.0 2.6 1.8 1.5 1.0 -0.9 17.0 -2.5 14.5 year-over-year driven by higher aftermarket activity ▪ 2023 EBITDA (adj.) margin of 17%, up from 15% in 20
Slide 4: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 4
Slide 5: Summary and outlook
Summary and outlook ▪ Strong revenue performance with USD 208 million recorded in 4Q 2023. USD 786 million revenue for FY 2023, up 16% versus FY 2022. ▪ Record adj. EBITDA performance of USD 44 million in 4Q 2023. FY 2023 adj. EBITDA of USD 132 million, up 30% versus FY 2022. ▪ USD 197 million order
Slide 6: High revenue and EBITDA growth driven by increasing end market activity
High revenue and EBITDA growth driven by increasing end market activity Revenue EBITDA (Adj.) EBITDA margin (Adj.) USD millions USD millions % +40% +53% 786 132 17% 675 Projects, 221 Products & Other 101 561 231 86 124 15% 15% Aftermarket 565 Services 437 444 2021 2022 2023 2021 2022 2023 2021 2022
Slide 7: HMH highlights | 4Q 2023
HMH highlights | 4Q 2023 Proforma financials, IFRS ▪ Revenues up 6% year-on-year and up 3% quarter- REVENUE EBITDA1) EBITDA MARGIN (Adj.) on-quarter driven by increased aftermarket USD millions USD millions % services activity partially offset by lower 203 208 44 21.0 196 project/product volume 186
Slide 8: Segments highlights
Segments highlights Aftermarket Services AFTERMARKET SERVICES Revenue, USD millions ▪ Service revenue up 12% year-on-year and up 7% quarter-on- 147 157 quarter driven by increase in spares output and Contractual 140 123 138 Services Agreement activity ▪ Order intake up 8% year-on-year and up 1% quar
Slide 9: Net interest-bearing debt
Net interest-bearing debt ▪ Net debt of USD 159 million as per end of period NET INTEREST-BEARING DEBT USD millions ▪ November refinancing: – New USD 200 million Senior Secured Bond (HMHH02) 271 – New USD 50 million Super Senior Secured RCF, with USD 22 million utilized per 4Q 2023 – USD 150 million
Slide 10: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 10
Slide 11: Net Capital Employed
Net Capital Employed Net Capital Employed per 4Q 2023 1) Development in 4Q 2023 NOK million NOK million 263 (248) 407 (675) (97) 497 (19) 711 (21) 92 (81) 4 764 7 4 645 3 970 4 645 3 015 DRU Other Net NIBD Equity Net Capital DRU Other Net Capital contracts Capital Employed contracts Employed Employe
Slide 12: Net interest-bearing debt development
Net interest-bearing debt development Net debt bridge 4Q 2023 highlights NOK million ▪ Net bank debt increased by NOK 8 million in the quarter, to NOK 1 184 1 176 9 1 184 million 24 (25) ▪ “Other” (as shown in graph) includes positive non-cash foreign exchange (262) effects of NOK 36 million ▪ DDW O
Slide 13: External financing facilities and liquidity
External financing facilities and liquidity Overview of financing facilities Cash and undrawn facilities as of 31 December 2023 NOK million 479 Facility Size Maturity Margin Revolving (USD) USD 60 million [1] June 2024 [2] 5.5% 144 335 Revolving (NOK) NOK 241 million [1] June 2024 [2] 5.5% Subordina
Slide 14: Income statement 4Q 2023 (preliminary)
Income statement 4Q 2023 (preliminary) COMMENTS ▪ JV holdings, including HMH and AKOFS, are not consolidated in the Akastor group financials. Consolidated revenue and EBITDA thus only represent a minor part of Akastor’s investments. Akastor © 2024 Slide 14
Slide 15: Income statement 4Q 2023 (cont.)
Income statement 4Q 2023 (cont.) COMMENTS ▪ Net financial items include non- cash items from financial investments and a non-cash net foreign exchange loss of NOK 54 million ▪ Equity accounted investees contributed negatively with NOK 151 million (non-cash for Akastor) Akastor © 2024 Slide 15
Slide 16: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 16
Slide 17: Portfolio overview
Portfolio overview Industrial investments Financial investments Company Service offering Ownership Global full-service offshore and onshore drilling equipment and service provider 50% Global engineering staffing provider within multiple sectors ~15%1) DRU Full economic Financial interest in four dri
Slide 18: HMH
HMH Business model ▪ Global full-service offshore and onshore drilling REVENUE equipment provider with a broad portfolio of products USD millions Capital Employed and services 208 65% 196 186 189 203 NOK 3 015 million ▪ Large installed base providing firm foundation for strong customer relationship
Slide 19: NES Fircroft
NES Fircroft Business model REVENUE 1) ▪ World’s leading engineering staffing and solution USD millions provider for highly technical industries spanning a Capital Employed 699 707 15% range of staffing services: Contract, Permanent Hire 622 670 NOK 711 million 606 & Managed Solutions ▪ Diversified
Slide 20: AKOFS Offshore
AKOFS Offshore Business model REVENUE ▪ Vessel-based subsea well construction and USD millions intervention services covering all phases from Capital Employed 36 37 9% conceptual development to project execution 36 NOK 407 million and offshore operations 30 28 ▪ Operates two SESV vessels in Brazil o
Slide 21: DDW Offshore
DDW Offshore Business model REVENUE ▪ Owns three Anchor Handling Tug Supply (AHTS) NOK millions vessels with capability to operate and support Capital Employed 80 6% clients on a world-wide basis NOK 263 million ▪ The vessels are specially designed to perform anchor-handling, towing, and supply serv
Slide 22: Key priorities for Akastor going forward
Key priorities for Akastor going forward Conclude DRU Monetize HMH liquidity event arbitration process DRU contracts DEBT REPAYMENT DISTRIBUTION TO SHAREHOLDERS (CASH OR SHARES) Akastor © 2024 Slide 22
Slide 23: Agenda
Agenda HMH Financial update Ownership agenda Q&A Akastor © 2024 Slide 23
Slide 24: Appendix
Appendix Akastor © 2024 Akastor © | 2024 Slide 24
Slide 25: Selected transactions since inception in 2014
Selected transactions since inception in 2014 July 2023 April 2023 February 2023 November 2022 August 2022 June 2022 February 2022 a HMH company Sale of two DDW 100% sale, against cash 100% sale to Offshore vessels to 100% acquisition of Sale to Establish JV and shares in Sale of preferred equity ho
Slide 26: Condensed Consolidated Income Statement (preliminary)
Condensed Consolidated Income Statement (preliminary) Akastor © 2024 Note: AGR is presented as discontinued operations from 1Q 2023. Comparable figures in 2022 have been re-presented. Slide 26
Slide 27: Condensed Consolidated Statement of Financial Position (preliminary)
Condensed Consolidated Statement of Financial Position (preliminary) Akastor © 2024 Slide 27
Slide 28: Condensed Consolidated Statement of Cash flows
Condensed Consolidated Statement of Cash flows The statement includes cash flows from discontinued operations prior to the disposal. Akastor © 2024 Slide 28
Slide 29: Alternative Performance Measures (1 of 2)
Alternative Performance Measures (1 of 2) Akastor discloses alternative performance measures as a supplement to the consolidated financial ▪ Capex and R&D capitalization - a measure of expenditure on PPE or intangible assets that qualify for statements prepared in accordance with IFRS. Such performa
Slide 30: Alternative Performance Measures (2 of 2)
Alternative Performance Measures (2 of 2) December 31 December 31 December 31 December 31 NOK million 2023 2022 NOK million 2023 2022 Non-current borrowings 236 198 Current operating assets 606 774 Current borrowings 1 133 1 142 Less: Gross debt 1 369 1 340 Current operating liabilities 339 531 Less
Slide 31: Key figures | Group
Key figures | Group AKASTOR GROUP (continuing operations) Akastor © 2024 Note: AGR is presented as discontinued operations from 1Q 2023. Historical figures for income statement have been re-presented, while balance sheet information included Slide 31 discontinued operations prior to divestment.
Slide 32: Key figures | Split per company (1/4) HMH
Key figures | Split per company (1/4) HMH Akastor © 2024 Note: HMH figures presented on 100% basis Slide 32 1) EBITDA (adj.) excludes non-recurring expenses or costs defined as outside of normal company operations 2) Equipment backlog defined as Project and Product orders
Slide 33: Key figures | Split per company (2/4) AKOFS Offshore
Key figures | Split per company (2/4) AKOFS OFFSHORE Akastor © 2024 Note: AKOFS Offshore figures presented on 100% basis Slide 33
Slide 34: Key figures | Split per company (3/4) DDW Offshore
Key figures | Split per company (3/4) DDW Offshore Akastor © 2024 Note: DDW Offshore was previously included in “Other Holdings” prior to 2Q 2023 Slide 34
Slide 35: Key figures | Split per company (4/4) Other holdings
Key figures | Split per company (4/4) OTHER HOLDINGS Akastor © 2024 Note: DDW Offshore is excluded from Other Holdings from 2Q 2023. Historical figures have been re-presented. Slide 35
Slide 36: Odfjell Drilling warrant structure
Odfjell Drilling warrant structure Description Warrant overview Exercise dates ▪ Warrant structure adjusted in Q2 2022 following the spin-off of Odfjell Technology 31 May 31 May 31 May 31 May 31 May 31 May 31 May 2019 2020 2021 2022 2023 2024 2024 ▪ The warrant structure comprise six tranches with 1
Slide 37: Copyright and disclaimer
Copyright and disclaimer Copyright Copyright of all published material including photographs, drawings and images in this document remains vested in Akastor and third party contributors as appropriate. Accordingly, neither the whole nor any part of this document shall be reproduced in any form nor u
Slide 38: AKASTOR ASA contact details
AKASTOR ASA Oksenøyveien 10, NO-1366 Lysaker, Norway P.O. Box 124, NO-1325 Lysaker, Norway +47 21 52 58 00 Akastor © 2024 www.akastor.com