Reach Subsea Asa · OSL:REACH
Reach Subsea Asa — Q1 2022 Earnings Presentation
18 slides from Reach Subsea Asa's earnings presentation, May 6, 2022
Slide 1: 1Q 2022 Financial results
1Q 2022 Financial results CEO Jostein Alendal and CFO Birgitte Wendelbo Johansen 6 May 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 Q1 2022 – Perfectly positioned for growth
Reach Subsea Q1 2022 – Perfectly positioned for growth • Important strategic milestones achieved, bringing Reach Subsea to pole position for next generation subsea operations • Solid underlying market driven by resurgence of oil & gas activity • Steady increase in demand from renewable energy and ot
Slide 4: Strategic moves to build a strong foundation
Strategic moves to build a strong foundation ▪ Further strengthening of Reach data management and data 1 analytics capabilities, allowing expansion of service scope ▪ Foundation for strategic co-operation on Reach Remote, and 2 provides equity funding for 2 x Reach Remote ▪ Contract with Kongsberg M
Slide 5: Serving strong customer base across sectors
Serving strong customer base across sectors Oil & Gas Offshore Wind Offshore Cables Emerging Sectors Structural decrease in new Offshore fish farming, subsea installations, but ageing Structural growth market as the Structural growth market mining, environmental installed base requires world electri
Slide 6: Expansion worldwide
Expansion worldwide Bergen Haugesund Oslo Aberdeen Houston Trinidad & Tobago Singapore
Slide 7: Vessel fleet 2022
Vessel fleet 2022 Viking Neptun Olympic Challenger Havila Subsea Olympic Delta Olympic Artemis Stril Explorer
Slide 8: Diversifying portfolio into unmanned vessels
Diversifying portfolio into unmanned vessels Innovative concept Dramatically lowers Unmanned with Jointly developed for remote and operational costs vessel and ROV in cooperation with autonomous and environmental controlled from Kongsberg operations of footprint of subsea operation room Maritime and
Slide 9: Reach Remote project status / timeline
Reach Remote project status / timeline ▪ Contract signed with Kongsberg Maritime for 2x USVs for 2023 delivery ▪ Building yard Trosvik in Breivik ▪ Proceeding according to latest timeframe ▪ Massterly on track with marine operational center in Horten ▪ Reach on track with remote operational center i
Slide 10: Finance
Finance REACH— SUBSEA
Slide 11: Q1 2022 highlights
Q1 2022 highlights Financial highlights Operational highlights Q1 2021 in brackets ▪ Challenging weather conditions lead clients to to postpone projects to later in the season REVENUE NOK 129 million (102 million) ▪ Record high order book NOK 350 million ▪ Resulting impact was low vessel utilization
Slide 12: Q1 2022 key developments
Q1 2022 key developments Revenue mix first quarter Reduced utilization and profit NOK MILLION NOK MILLION ▪ Winter season, low utilization ▪ Transaction cost 12 11 ▪ Build capacity for future operations and secure the 54 97 possibility to exploit opportunities -38 -44 48 32 Q1 2021 Q1 2022 Q1 2021 Q
Slide 13: Q1 2022 EBIT explained
Q1 2022 EBIT explained Q1 2022 EBIT mix YoY EBIT bridge NOK MILLION NOK MILLION 12 ▪ Certain new and special -7 effects negatively impact Q1 EBIT ▪ Challenging weather conditions impact in two ways: -26 ▪ Lower result on projects -22 performed (standby rates) -7 ▪ Low vessel utilization (63% vs 96%)
Slide 14: Positioned for growth
Positioned for growth Solid financial position NOK MILLION Strong balance sheet ▪ Consolidated balance sheet after M&A transactions ▪ Liquidity and equity positions are strong 512 ▪ Delivering on dividend policy ▪ Positioned for Reach Remote 287 306 investment 210 207 40 160 26 130 31 37 70 2019 202
Slide 15: Progress on achieving ESG targets
Progress on achieving ESG targets Responsible business Develop and implement audit plan for suppliers Ongoing Environment Employees Increase activity within Reduce COE emissions Work-related sick leave at Zero work-related injuries Maintain customer non-Oil&Gas segment to compared to activity low le
Slide 16: Summary
Summary REACH— SUBSEA
Slide 17: 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 18: Q&A
Q&A SUBSEA