Slide 1: H1 2021 Results Presentation
H1 2021 Results Presentation TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) December 2020 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
Presentation Team Alasdair MacDonald Chief Executive Officer • Joined Tekmar in 2013 • Over 30 years’ experience in the energy sector holding senior executive positions including CEO at Wellstream Holdings plc, a FTSE 250 company • Spent 19 years with Technip including Managing Director of Technip U
Slide 4: Contents
Contents H1 2021 Highlights 5 H1 2021 Results 23 Operational Highlights 7 H1 2021 P&L 24 H1 2021 Orderbook 10 H1 2021 Balance Sheet 25 KPI’s & Comparisons 11 H1 2021 Cash Flow 26 Revenue Diversification 12 Appendix 27 Market Overview 13 Why Offshore Wind 14 Global Offshore Wind Outlook 15 Subsea Cab
Slide 5: H1 2021 Highlights
H1 2021 Highlights (LON:TGP)
Slide 6: H1 2021 Highlights
H1 2021 Highlights Financial Highlights Market Highlights Operational Highlights Strategic Highlights • Revenue £15.2m (H120 £17.1m) • All indicators point to growth and • Maintained LTI free days in period • Focussed on growth in the OW market • EBITDA £0.8m (H120 £2.0m) significant investment in O
Slide 7: Operational Highlights
Operational Highlights • Review and reorganisation of the business to deliver operational cost savings and further integration efficiencies across the Group • International expansion continues with first OWF contracts secured in France and Japan • Growth in OWF OPEX Service offering with ongoing pro
Slide 8: Generation 10
Generation 10 The same familiar cable protection systems : Redeveloped for future project demands: Bigger Turbines I Larger Cables l New Climatic Conditions l Latest Installation Techniques I Utilising Improved Cable Data Performance Thermal Life Extension Cross Compatible Improved thermal performan
Slide 9: PLET Handling Spread
PLET Handling Spread • Our largest and most complex engineering project to date delivered • Turnkey: concept development, detailed design and engineering, manufacturing, pre-assembly and onsite commissioning support • Over 20,000 engineering hrs over 18-month period • Deliverables: Bespoke Pipeline
Slide 10: H1 2021 Order Book / Order Intake
H1 2021 Order Book / Order Intake £1.6m £10m £15.2m 1.0 Order Book Order Intake Book to Bill H1 2021 £4.1m Order Intake by £7.3m Company £15.2m Key Highlights • Three new offshore wind contracts in China £2.3m • First major offshore wind project in Japan TEL SIL PIL AEL • First project in the Middle
Slide 11: KPI's & Comparisons
KPI’s & Comparisons KPI HY18 FY18 HY19 FY19 HY20 FY20 H121 % Change (1) Lost time incident rate 1.22 1.22 0 0 0 0 0 0 Enquiry book £127m £145m £170m £195m £186m £224m £230.5m 23% Preferred bidder £2.9m £7.6m £18.1m £15.0m £7.5m £14.6m £11.3m 50% Order book £8.9m £5.4m £12.9m £7.2m £15.9m £10.0m £10m
Slide 12: Revenue Diversification
Revenue Diversification 4% 5% 6% 12% 8% 21% Company Company 20% Company Company FY18 FY19 FY20 H1 2021 55% 67% 18% 84% 99% TEL SIL PIL AEL 16% 37% 34% 32% Sector Sector Sector Sector FY18 FY19 FY20 H1 2021 68% 66% 63% 84% Offshore Wind Offshore Other TGP-MAR-PLC (H1 2021 Results Presentation) (LON:T
Slide 13: Market Overview
@lekmar Group plc Market Overview
Slide 14: Why Offshore Wind
Why Offshore Wind • Now a mature industry • Global expansion progressing based on European experience • More than 70% of the planet is covered by sea with stronger wind speeds • Sustainable clean renewable energy • A domestic energy source • Proximity to densely populated coastal areas • Scale • Spe
Slide 15: Global Offshore Wind Outlook
Global Offshore Wind Outlook Live Ongoing Planning • 7.9% market increase to 2030 outlook in last 6 months 233 GW • >18.6% CAGR for new generation capacity forecast to 2024 227 GW 216 GW • Live project visibility on +350 projects (171GW) due for construction by 2030 • GWEC predicts annual installati
Slide 16: Global Wind Outlook to 2030
Global Wind Outlook to 2030 Other Other Belgium 0.7 France China Denmark 1.8 China 2.5 Other 5.5 33.8 30.0 1.7 1.5 Netherlands Taiwan 1.1 2.9 28.9GW South Korea 8.1 171.5GW 32.3GW Planned Construction 23.3 UK Fully Commissioned Ongoing 16.5 China Japan 8.5 Netherland 4.1 by 2030 7.6 Germany 14.5 10.
Slide 17: Subsea Cable Outlook
Subsea Cable Outlook • Estimated €50bn global spend on cable procurement and • Substantial opportunity for geotechnical route analysis, cable installation in the next decade with over 61,800km of array burial risk assessments, installation analysis, protection and and export cable to be installed be
Slide 18: Addressable Market to 2030
Millions Addressable Market to 2030 £140 £120 £100 Estimated Market Potential to 2030 £80 • £400m CAPEX potential in fixed OW £60 • £25m OPEX potential in fixed OW • £230m CAPEX potential in floating OW £40 • £500m market potential for bespoke solutions • £60m CAPEX potential in Interconnector marke
Slide 19: Emerging Markets in Offshore Wind
Emerging Markets in Offshore Wind Group is well positioned for growth in emerging offshore wind markets China I 30GW planned capacity by 2030 South Korea I 8.1GW planned capacity by 2030 • Company in Shanghai (Tekmar Energy China) • Supplied the first phase of Southwest Offshore windfarm, the larges
Slide 20: Floating Wind Outlook
Floating Wind Outlook • GWEC predict 6.2GW of floating wind will be built in the next 10 years • 2030 forecast suggests up to 19GW possible by 2030 subject to LCO • >37.6% CAGR for new floating wind forecast to 2024 • Market to switch gear in 2025 • UK has set new target of 1GW of floating wind by 2
Slide 21: Offshore Wind vs. Oil & Gas
Offshore Wind vs. Oil & Gas Source: Rystad Energy Research and Analysis, UCube TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) December 2020 Page 21
Slide 22: Growth Strategy
Growth Strategy Increased revenue per project by combined product offering Organic Growth Accelerated Growth Acquisition Strategy Investment in new technology, operational M&A targets; Markets growing. efficiency, expansion overseas Shared vision OWF growing at 18.6% CAGR 2021/25 Technology and sect
Slide 23: H1 2021 Results
@lekmar Group plc H1 2021 Results
Slide 24: H1 2021 P&L
H1 2021 P&L £000 H1 2021 H1 2020 FY 2020 Commentary Offshore Wind 10,095 9,809 25,706 Offshore wind accounted for 66% of Group revenue. Other offshore Other offshore 5,143 7,284 15,237 includes oil & gas, interconnectors, wave & tidal Revenue 15,238 17,093 40,943 Cost of sales (10,501) (11,653) (28,
Slide 25: H1 2021 Balance Sheet
H1 2021 Balance Sheet £000 H1 2021 H1 2020 FY 2020 Commentary Fixed assets 5,476 5,198 5,892 Goodwill & other intangibles 25,816 21,600 26,294 Goodwill & other intangibles include acquired intangible assets and goodwill for PIL (£4.6m) Deferred tax asset 0 79 0 Non Current Assets 31,292 26,877 32,18
Slide 26: H1 2021 Cash Flow
H1 2021 Cash Flow £000 H1 2021 H1 2020 FY 2020 Commentary Adj. EBITDA 795 1,975 4,695 Exceptional items & others 52 (100) (75) Movement in inventories 344 (223) (512) Movement in debtors reflects an unwinding of debtors and accrued Movement in debtors 6,572 (349) (4,393) income in the Period Movemen
Slide 27: Appendix
Appendix (LON:TGP)
Slide 28: Innovative Marine Technology
Innovative Marine Technology Working together to provide leading technology and services to the global offshore energy markets TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) December 2020 Page 28
Slide 29: suerte ——®)
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Slide 30: Global Reach
Global Reach TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) December 2020 Page 30
Slide 31: Vision & Values
Vision & Values Vision Key Enablers Our vision is to be the leading provider of 1. Our core values technology and services to the global offshore 2. Growing global demand energy markets 3. Strong brand and outstanding reputation 4. Balance sheet 5. Our core strategy Key Objectives 1. Sustainable Gro
Slide 32: Group trading entities
Group trading entities Tekmar Group plc (TGP) Established May 2018 IPO June 2018 Subsea Innovation Limited Pipeshield International Limited AgileTek Engineering Limited Tekmar Energy Limited Tekmar GmbH (SIL) (PIL) (AEL) (TEL) (Non-trading) Established 1985 Established 1999 Established 2014 Establis
Slide 33: Group Companies Overview
Group Companies Overview Key Clients Boskalis, Ørsted, JDR Global Offshore, Operators, Tekmar Energy Subsea 7, IHC, Saipem NPCC, Allseas, Van Oord Focus Technology Cable Protection Systems (CPS) Subsea Analysis Bespoke Back-Deck Equipment Subsea Mattresses Typical Application Subsea Power Cables Ves
Slide 34: H1 2021 Group News Highlights
H1 2021 Group News Highlights TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) December 2020 Page 34
Slide 35: tekmargroup.com
Tekmar Group plc Park 2000 Newton Aycliffe DL5 6AR t. +44(0) 1325 379520 e. info@tekmar.co.uk tekmargroup.com TGP-MAR-PLC (H1 2021 Results Presentation) (LON:TGP) Page 35