Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Merger or Acquisition (February 2022)
18 slides from Reach Subsea Asa's merger presentation, Feb 18, 2022
Slide 1: iSURVEY acquisition + Wilhelmsen strategic partnership
iSURVEY acquisition + Wilhelmsen strategic partnership Rachid Bendriss Chairman of the Board of Reach Subsea ASA 18 February 2022
Slide 2: Disclaimer
DISCLAIMER IMPORTANT – You must read the following before continuing. The following applies to this document, the oral presentation of the information in this document by Reach Subsea ASA (the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the ora
Slide 3: Reach Subsea in brief
Reach Subsea in brief ▪ Subsea services for all types of offshore assets through the whole lifecycle ▪ We provide clients with Data and Solutions for clients’ subsurface assets ▪ Services are delivered by our skilled people using the right technology from a subsea vessel ▪ Developed for the oil & ga
Slide 4: Reach Remote – future proofing subsea services
Reach Remote – future proofing subsea services The next step in subsea operations • Remote and autonomous operations of subsea vessels • Jointly developed with Kongsberg Maritime and Massterly • Safe operations conducted from onshore control room • Dramatically lowers operational costs and environme
Slide 5: Strategic move to expand and deepen Reach's offering
5 Strategic move to expand and deepen Reach’s offering ▪ Acquire 100% of iSURVEY for NOK 135 million, settled through 33.8 1 million Reach shares and NOK 25 million cash ▪ Further strengthening of Reach data management and data analytics capabilities, allowing expansion of service scope ▪ Private pl
Slide 6: iSURVEY – An asset light, high-quality survey provider
6 iSURVEY – An asset light, high-quality survey provider World wide activity 33% Strong foothold in key regions Norway Revenue split ~50/50 From non-O&G and O&G Europe 43% sectors in 2021 24% World Offices Selected key clients
Slide 7: Primary source of synergies is expansion of Seabed surveys
7 Primary source of synergies is expansion of Seabed surveys iSURVEY revenue distribution ▪ Own survey projects with vessel responsibility 41% Seabed surveys ▪ Seabed mapping, site surveys, route surveys and inspection ▪ Survey support for installation and maintenance of high voltage cables Offshore
Slide 8: Reach has the key to unlock iSURVEY's potential
8 Reach has the key to unlock iSURVEY’s potential Revenue potential existing business (NOKm) Business volume can be doubled by mobilising iSURVEY onto two Reach spreads 3rd spread ▪ Revenue for one multi-purpose spread typically NOK 250m p.a. with project margins at 15-20% ▪ iSURVEY scope around 50%
Slide 9: iSURVEY acquisition creates a larger and fully integrated Reach
iSURVEY acquisition creates a larger and fully integrated Reach Capabilities to operate full survey spreads on multiple vessels - Ability to take on larger survey projects with higher margins - Stronger competitive position in survey driven new verticals Strengthens the value proposition of Reach Re
Slide 10: Executing on value accretive, opportunistic growth strategy
Executing on value accretive, opportunistic growth strategy Key 1 OCTIO acquisition 2 iSURVEY acquisition strategic ▪ Expands Reach Subsea’s services portfolio into ▪ Strengthens inhouse data management and data objectives the carbon capture and storage (CCS) segment processing capabilities executed
Slide 11: Wilhelmsen New Energy new strategic partner
Wilhelmsen New Energy new strategic partner ▪ Wilhelmsen as strategic partner contributing to ensure the commercial success of Reach Remote ▪ Already involved through its 50% ownership of Massterly, the “marine crew” of Reach Remote ▪ Has a substantial global maritime network ▪ Building an “ecosyste
Slide 12: Building blocks for Reach Remote success falling in place
Building blocks for Reach Remote success falling in place Strong Inhouse data technology & management development capabilities partner 50% 50% Industrial global Unique patented partner for go-to monitoring market strategies technologies
Slide 13: Strategic moves lead to bold ambitions
Strategic moves lead to bold ambitions Wilhelmsen network and iSURVEY data mgmt/processing competence contributes to de-risking commercialisation Survey scope insourced through deploying iSURVEY onto Reach spreads Reach 2021 EBIT iSurvey integrated on Reach 2 x Reach Remote Future target spreads
Slide 14: Robust financial position – ready for growth
14 Robust financial Indicative position consolidated – ready balance sheetfor growth Indicative balance sheet (NOKm) 900 IB debt ▪ Including private placement of NOK 150m and acquisition of iSURVEY Cash & IFRS 16 liabilities working capital ▪ Cash and working capital position of nearly 600 NOK 350m,
Slide 15: The trusted data and subsea service provider for ocean-based industries
The trusted data and subsea service provider for ocean-based industries Rapidly growing ocean-based Well-positioned to capture Robust financial profile industries market profitable growth opportunities ▪ Stable oil and gas market mid to long-term, ▪ Leveraging 10+ years of spotless execution and ▪ S
Slide 16: Appendix
Appendix REACH— SUBSEA
Slide 17: Transaction description – sources and uses
17 Transaction description – sources and uses ▪ Transaction to fully fund Reach Subsea for the Sources & Uses (NOKm) Sources NOKm delivery of 2x Reach Remote newbuilds and increased business volume following iSURVEY Shares issued to iSURVEY owners 110 acquisition Private placement of equity 150 Bank
Slide 18: iSURVEY revenue and EBITDA
iSURVEY revenue and EBITDA Revenues (NOKm) EBITDA (NOKm) 250 25 200 20 150 15 100 10 50 5 0 0 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Note: 2021 figures are unaudited. All figures according to NGAAP.