Tekmar Group Plc · LSE:TGP
Tekmar — H1-H2 2021 Earnings Presentation
28 slides from Tekmar's earnings presentation, Jun 1, 2021
Slide 1: H1-H2 2021 Results Presentation
H1-H2 2021 Results Presentation TGP PLC H1-H2 2021 Results_Investor Presentation (LON:TGP) 01 June 2021 Page 1
Slide 2: Disclaimer
Disclaimer This presentation contains certain forward-looking statements, including but not limited to, the statements and expectations contained in the presentation. Statements herein, other than statements of historical fact, regarding our future results of operations, financial condition, cash fl
Slide 3: Presentation Team and Agenda
Presentation Team and Agenda Agenda • Results Overview, CEO Perspectives & KPIs • Financial Performance • Operational Focus and Market Overview • Strategic Plan Alasdair MacDonald Sue Hurst Derek Bulmer • Near-term Outlook and Summary TGP PLC H1-H2 2021 Results_Investor Presentation (LON:TGP) 01 Jun
Slide 4: Results Overview, CEO Perspectives and KPIs
Results Overview, CEO Perspectives and KPIs (LON:TGP)
Slide 5: H1-H2 2021 Highlights
H1-H2 2021 Highlights • Continued business resilience with Group reporting modest EBITDA loss for 12m to 31/3/21 Financial Stability • 45% growth in order book and 22% increase in enquiry book supports near-term outlook • 65% of group revenues within offshore renewables market Growth Markets • Lead
Slide 6: CEO Perspectives
CEO Perspectives • Opportunity to build a more dominant position in the wider offshore wind market, building on our leading position in the CPS market • Strong industry fundamentals • Industry landscape characterised by requirement for more technically demanding solutions going forward, which the Te
Slide 7: KPI's & Comparisons
KPI’s & Comparisons KPI FY19 FY20 H1-H2 (1) % Change (2) Lost time incident rate 0 0 0 0 Enquiry book £195m £224m £273m 22 Order book £7.2m £10.0m £14.5m 45 Revenue £28.1m £40.9m £29.1m -29 Order intake £29.9m £43.7m £35.7m -18 Book to Bill 1.06 1.07 1.23 16 Market Measures OWF outlook GW (4) 227 21
Slide 8: Financial Performance
Financial Performance (LON:TGP)
Slide 9: H1-H2 2021 P&L
H1-H2 2021 P&L £000 H1-H2 2021 FY 2020 Commentary Offshore Wind 18,883 25,706 Offshore wind accounted for 65% of Group revenue. Other offshore Other offshore 10,256 15,237 includes marine civils and oil & gas Revenue 29,139 40,943 Cost of sales (20,820) (28,671) Gross profit 8,319 12,272 29% 30% Ove
Slide 10: H1-H2 2021 Balance Sheet
H1-H2 2021 Balance Sheet £000 H2 2021 FY 2020 Commentary Fixed assets 5,386 5,892 Goodwill & other intangibles 25,721 26,294 Non Current Assets 31,107 32,186 Inventory 2,508 2,536 Trade and other receivables 18,546 26,819 Trade receivables reduced broadly in line with revenue. Cash 3,781 2,130 Inclu
Slide 11: H1-H2 2021 Cash Flow
H1-H2 2021 Cash Flow £000 H2 2021 FY 2020 Commentary Adj. EBITDA (336) 4,695 Exceptional items & others 229 (75) Movement in inventories 28 (512) Movement in debtors 8,273 (4,393) Movement in creditors (7,889) 2,357 Includes the £2.75m deferred payment for PIL (in April & October Tax recovered (paid
Slide 12: Operational Focus and Market Overview
Operational Focus and Market Overview (LON:TGP)
Slide 13: H1-H2 2021 Sales Outlook
H1-H2 2021 Sales Outlook Key Highlights • Maintained strong position in OW market £35.7m £4m • Orderbook up 45% v FY20 £14.5m 1.23 Order Preferred Order Book Book to Bill • Order intake down 18% (improved in H2 v H1) Intake Bidder • Book to Bill @ 1.23 (H2 at 1.55) • Enquiry book strong at £273m • O
Slide 14: Operational Focus - Offshore Wind O&M
Operational Focus - Offshore Wind O&M • Awarded significant O&M contract in Q1 2021 for UK OWF • 2021 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
Slide 15: Operational Focus - Scour Erosion and Protection
Operational Focus - Scour Erosion and Protection • 01: The turbulent flow of water causes local erosion (Scour) around piled foundations • 02: Scour protection is typically deployed around the foundation base (rock dump) to mitigate the risk 01. Seabed Scour 02. Dual Layer Scour Protection Wind Turb
Slide 16: Global Offshore Wind Market Outlook to 2030
Market Global Wind Outlook to 2030 238 GW 227 GW • 10% market increase to 2030 outlook compared to same period 216 GW 2020 150 GW • >13.5% CAGR for new generation capacity forecast to 2030 169 Market Outlook to 2030 186 Global Offshore Wind 168 • Project visibility on +350 projects (169GW) due for c
Slide 17: Offshore Wind Timing
Offshore Wind Timing 2020 Market Overview (Excluding China) • Global capacity increased by 21% to 25.5GW year on year (YOY) • New additions decreased by 19% YOY • New tenders decreased by 93% YOY • No. turbines connected in 2020 was lowest in eight years 2020-2021 Market Development • FID’s an all t
Slide 18: Regional Wind Outlook to 2030
Regional Wind Outlook to 2030 Other Other Belgium* Vietnam* Other 0.7 1.9 20 China* Denmark* 2.3 China* France* 1 26 Ireland 1.7 7.6 1.9 5 Netherlands* Netherland* Poland 2.6 8 2.6 33GW Netherlands* 8 169GW 21 UK* Taiwan* 2.6 36.3GW Planned Construction Fully Commissioned Ongoing South Korea* 8 by 2
Slide 19: Offshore Oil & Gas Market Recovery
Offshore Oil & Gas Market Recovery Offshore Upstream Investments by Supply Source Global Offshore Project Commitments, Split by 5 year periods USD Billion (Nom) Number of Projects Source: Rystad Energy TGP PLC H1-H2 2021 Results_Investor Presentation (LON:TGP) 01 June 2021 Page 19
Slide 20: Strategic Plan
Strategic Plan (LON:TGP)
Slide 21: 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 Leverage market mega-tren
Slide 22: Growth Journey
Growth Journey 01 Historic 02 Current 03 Future 2007 – 2020 Building the foundation 2020 – 2022 Transition for growth 2022– 2026 Accelerated growth • Development and launch of a pioneering • Refreshed strategic plan implemented technology into the new emerging • Market recovery and structural growth
Slide 23: Growth Strategy
Growth Strategy By focusing the business on clear growth initiatives, combined with business improvement and our commitment to building a sustainable business, we will deliver a transformation in sustainable, profitable growth over the five years of the Plan 01 Organic Growth 02 Acquisition Strategy
Slide 24: Key Investment Themes
Key Investment Themes Through investment in key areas, we expect the see the £10-12m investment earmarked over Investment anticipated to be self-funded current group double its revenue in the next 5 years, with the course of the plan, with ~half on from cash generation further growth coming from M&A
Slide 25: Outlook and Summary
Outlook and Summary (LON:TGP)
Slide 26: Near-term Outlook
Near-term Outlook “The Board remains cautious on the near-term commercial environment” • Ongoing Covid disruption across the industry • Stable financial performance expected in the third half of the extended financial year • Similar revenue run-rate in the third half to each of the first two interim
Slide 27: Summary
Summary Financial Stability Growth Markets 02 Offshore Wind Operations & Maintenance Commercial Leadership Clear Strategy Operational Focus TGP PLC H1-H2 2021 Results_Investor Presentation (LON:TGP) 01 June 2021 Page 27
Slide 28: tekmargroup.com
Tekmar Group plc Innovation House Centurion Way Darlington DL3 0UP t. +44(0) 1325 379520 tekmargroup.com e. info@tekmar.co.uk TGP PLC H1-H2 2021 Results_Investor Presentation (LON:TGP) Page 28