Endur Asa · OSL:ENDUR
Endur Asa — Q3 2022 Earnings Presentation
27 slides from Endur Asa's earnings presentation, Nov 18, 2022
Slide 1: Endúr ASA Q3 2022 financial results
Endúr ASA Q3 2022 financial results 18 November 2022
Slide 2: Agenda
ENDÚR Q3 2022 PRESENTATION Agenda Group - Consolidated key figures and highlights - Group structure and strategy - Selected ongoing projects Business segments - Aquaculture, Marine Infrastructure and Other - Key figures and highlights - Focus: Macroeconomic conditions Financials - Profit & loss - Ba
Slide 3: Endúr reports highest ever EBITDA
CONSOLIDATED KEY FIGURES AND HIGHLIGHTS Endúr reports highest ever EBITDA REVENUE ADJ. EBITDA ADJ. EBITDA MARGIN CASH FLOW FROM OPERATIONS NOK 592.6 million NOK 67.2 million 11.3% NOK 6.3 million +4% vs. Q3 2021 +3% vs. Q3 2021 -0.2 p.p. vs. Q3 2021 • Strong underlying profitability, Revenue Adj. EB
Slide 4: Targeting group annualized revenue of NOK 4 billion by end of 2024
GROUP STRUCTURE AND STRATEGY Targeting group annualized revenue of NOK 4 billion by end of 2024 • Leading full-service provider for Aquaculture Solutions and Marine Aquaculture Solutions Marine Infrastructure Other Infrastructure in Norway and Sweden, servicing both public and private sector Artec A
Slide 5: Selected ongoing projects
PROJECTS Selected ongoing projects Aquaculture Solutions Marine Infrastructure Other Salmon Evolution BTA Varåa and Børke bridges The Norwegian Royal Yacht Company Artec Aqua Company BMO Entreprenør Company Endúr Maritime Value appr. NOK 1.6 billion Value appr. NOK 45 million Value appr. NOK 50 mill
Slide 6: Business segments
endur. Business segments
Slide 7: Aquaculture: Transition towards project design
AQUACULTURE SOLUTIONS Aquaculture: Transition towards project design REVENUE EBITDA EBITDA MARGIN -5% -49% -3.1 p.p. • Build-out of Salmon Evolution BTA Revenue EBITDA & EBITDA margin approaching final stage (delivery in 376.3 364.6 22.3 332.6 20.8 400 25 30,00% Q1’23) and production starting to til
Slide 8: Marine Infrastructure: Record earnings and high-end margins
MARINE INFRASTRUCTURE Marine Infrastructure: Record earnings and high-end margins REVENUE EBITDA EBITDA MARGIN +13% +9% -0.9 p.p. EBITDA & EBITDA margin • Highest ever quarterly EBITDA driven by Revenue* 56.1 high revenue and margins from ongoing 56.1 258.1 51.4 60 60,00% 244.6 250.1 300 production,
Slide 9: Macroeconomic conditions
FOCUS Macroeconomic conditions Proposed new Norwegian tax regime for offshore fish-farming • Proposed taxation of economic rent (“grunnrente”) only for conventional fish- farming • Uncertainty in the Norwegian market for fish-farming in general • Long term outlook for Aquaculture in general unchange
Slide 10: Other: Sustained positive contributions from Endúr Maritime
OTHER Other: Sustained positive contributions from Endúr Maritime ENDÚR MARITIME – EBITDA MARGIN ENDÚR ASA – ADJ. EBITDA 9.0% NOK -4.2 million Endúr Maritime Revenue Revenue split quarter • Quarterly margin +7.2 p.p year-on-year 70 58.7 60 53.6 51.2 52.5 • Combination of operational measures 9% 35.8
Slide 11: Financials
endur. Financials
Slide 12: Profit & loss
FINANCIALS Profit & loss Amounts in MNOK Q3 2022 Q3 2021 YTD 2022 YTD 2021 FY 2021 Actuals Actuals Actuals Pro forma* Pro forma* • Q3 2022 revenue driven by high Continued operations activity level within Marine Operating revenue 589,8 565,7 1 824,9 1 514,5 2 173,3 Infrastructure, while Salmon Other
Slide 13: Balance sheet
FINANCIALS Balance sheet Amounts in MNOK Q3 2022 Q2 2022 Amounts in MNOK Q3 2022 Q2 2022 Actuals Actuals Actuals Actuals • Intangible assets largely related ASSETS EQUITY AND LIABILITES to acquisitions of Artec Aqua, Deferred tax assets Share capital 14 14 BMO Entreprenør and Marcon 0 0 Intangible a
Slide 14: Cash flow
FINANCIALS Cash flow Amounts in MNOK Q3 2022 Q3 2021 YTD 2022 YTD 2021 FY 2021 Actuals Actuals Actuals Actuals Actuals • Cash flow from operations Profit/loss for the period 1,7 -3,7 12,4 -74,3 -51,8 impacted negatively in Q3 2022 Adjustments for non-cash items 48,0 30,3 94,0 66,8 45,4 by late payme
Slide 15: Net working capital (NWC) and net interest-bearing debt (NIBD)
FINANCIALS Net working capital (NWC) and net interest-bearing debt (NIBD) NWC NIBD & Leverage ratio Equity & Equity ratio • Build-up in NWC caused by late 60 1000 10 1000 80,00% payments on two projects 56 (increase in NWC) and increase 894 898 906 910 in other current liabilities due to 900 9 900 8
Slide 16: Outlook & summary
endur. Outlook & summary
Slide 17: Market outlook
OUTLOOK Market outlook • Taxation of economic rent for conventional fish-farming yields short term market uncertainty, but represents a long-term possibility for onshore fish-farming Backlog and early-phase projects* Aquaculture Solutions • Increased interest from abroad projects with foreign invest
Slide 18: Strong operating performance in a volatile financial market
SUMMARY Strong operating performance in a volatile financial market Q3 2022 results represent an improvement year-on- year, in spite of Q3 2021 being a very profitable quarter Favourable market outlook for both Marine Infrastructure and Aquaculture Solutions Signed contract with Geo Salmo on Iceland
Slide 19: Q&A
endur. Q&A
Slide 20: endur.
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Slide 21: Appendix
endur. Appendix
Slide 22: Alternative performance measures
Alternative performance measures Basis for preparation Alternative performance measures (cont.) This presentation provides financial highlights for the quarter. The financial information in EBITDA - Profit/loss before i) tax, ii) net finance cost, iii) depreciation, amortisation, this presentation i
Slide 23: Operating results per company
APPENDIX Operating results per company Artec Aqua (Aquaculture Solutions) Endúr Sjøsterk (Aquaculture Solutions) Amounts in MNOK Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Revenue 292,8 363,6 341,4 301,3 252,8 13,9 12,7 23,1 31,2 40,0 EBITDA 21,6 22,1 21,0 15,8 8
Slide 24: Quarterly profit & loss
APPENDIX Quarterly profit & loss Amounts in MNOK Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Actuals Actuals Actuals Actuals Actuals Continued operations Operating revenue 565,7 658,9 609,9 625,3 589,8 Other revenue 2,0 4,4 1,9 12,6 2,8 Revenue 567,7 663,3 611,8 637,9 592,6 Cost of sales 366,6 447,8 408
Slide 25: Quarterly balance sheet
APPENDIX Quarterly balance sheet Amounts in MNOK Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Amounts in MNOK Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals Actuals ASSETS EQUITY AND LIABILITES Deferred tax assets 0 0 0 0 0 Share capital 19
Slide 26: Quarterly cash flow and statement of changes in equity
APPENDIX Quarterly cash flow and statement of changes in equity Amounts in MNOK Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Actuals Actuals Actuals Actuals Actuals Cash flow from operating activities 151,0 -86,5 63,6 67,5 6,3 Cash flow from investing activities -4,4 -440,6 -7,6 3,0 -8,0 Cash flow from f
Slide 27: endur.
endur.