Expro Group Holdings N.v. · NYSE:XPRO
Expro — Piper Sandler 24th Annual Energy Conference 2024
28 slides from Expro's conference presentation, Mar 18, 2024
Slide 1: 24th Annual Energy Conference
24th Annual Energy Conference March 18-20, 2024 | Las Vegas, NV NYSE: XPRO
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this presentation that address activities, e
Slide 3: Get to Know XPRO
Get to Know XPRO TTM REVENUE1 ~80% ~70% $1,513m I N T E R N AT I O N AL OFFSHORE Asia Pacific ~$2.2bn Market Capitalization2 16% North & Latin America 34% ~$2.1bn Middle East North Africa BY 15% REGION 60 Countries S T R O N G C AS H ZERO NET-DEBT Enterprise Value3 FLOW OUTLOOK B AL AN C E S H E E T
Slide 4: Balanced Portfolio of High Value-Added Services
Balanced Portfolio of High Value-Added Services Value-Adding Services Market Leadership Global Operating Across the Well Lifecycle Footprint Cost-effective, technology- We “punch above our weight” Activity in +60 countries, with enabled services and because of long-standing 80% of revenue from solut
Slide 5: Expro is Positioned to Capitalize on Increasing Demand for Energy Services
Expro is Positioned to Capitalize on Increasing Demand for Energy Services Estimated Value of Projects Sanctioned/Expected to be Sanctioned ($Bn)1 Favorable Macro Backdrop $179 • Strong and stabile oil prices are expected to drive Deepwater FIDs +$200bn for 2024-2026, levels not increased operator i
Slide 6: Investment Momentum Shifting to International and Offshore Markets Provides Opportunity for Expro
Investment Momentum Shifting to International and Offshore Markets Provides Opportunity for Expro Total Capital Investments by Year ($Bn)1 50% $600 Increased offshore and international investment 40% CAPEX North America Onshore International Offshore (i.e., long cycle development) 500 provides Expro
Slide 7: Q4 2023 and Full-Year Results
Q4 2023 and Full-Year Results Favorable long-term outlook and business momentum following strong Q4 Company Highlights Q4 2023 Full Year 2023 • Revenue growth of 10% Q/Q and Adjusted Revenue Revenue EBITDA growth of 70% Q/Q driven by improving activity mix, operating leverage, $407m 10% Q/Q 16%
Slide 8: Outlook for 2024
Outlook for 2024 Market Outlook 2024E Financial Outlook1 • Anticipated stable oil demand will be driven by continued recovery in Asia, improving macro-economic Revenue ($m) data in US and Europe and increasing global travel • Market tailwinds supporting sustained investment and activity growth in th
Slide 9: Outlook for Medium-Term
Outlook for Medium-Term Expro Financial Outlook Medium-Term Targets for Revenue, Contribution Margin and Adjusted EBITDA Margin1,2 • Intend to remain disciplined with costs and capex through this growth cycle • Multi-year growth phase should support 1% to 3,000 57% Adjusted EBITDA Margin 0.6 2% annu
Slide 10: Balanced Capital Approach to Create Long-Term Value for Shareholders
Balanced Capital Approach to Create Long-Term Value for Shareholders Balanced Capital Allocation Framework MAINTAIN STRONG BALANCE SHEET FUND ORGANIC GROWTH INVESTMENTS Committed to keeping total capex (maintenance and Maintain growth) at 7-8% of revenue Disciplined Capital Allocation to Drive PURSU
Slide 11: Disciplined & Strategic Approach to M&A
Disciplined & Strategic Approach to M&A Smart, synergies focused acquisitions based on industrial logic and increasing relevance (customers and investors) Rigorous M&A Criteria Proven Track Record of Successful M&A Leverages and/or complements existing Expro and Frank’s Merge capabilities and custom
Slide 12: Pending Acquisition of Coretrax
Pending Acquisition of Coretrax Global technology leader in Performance Drilling Tools, Wellbore Cleanup and Well Integrity Solutions ✓Highly Accretive to Well Construction Business Market-leading portfolio of technology solutions adds meaningful scale to Expro’s Well Construction business ✓Technolo
Slide 13: Why Invest in Expro
Why Invest in Expro Reasons to Own Expro • Strong and stabile oil prices are expected to drive increased operator investment and activity after nearly 10 years of limited upstream spending • Project approvals will drive customer capital spending (~70% of Expro’s revenue) for 3-5 years, thereby provi
Slide 14: Appendix
Investors.Expro.com Downloadable Financials Our ESG report Follow us on Connect with us on Appendix: Subscribe to our To learn even more about Expro, check out these additional places to get in touch with us. channel
Slide 15: 2024 Revenue Guidance Supplement
2024 Revenue Guidance Supplement Supplemental Commentary & Outlook 2024 Revenue Guide Details1 ($m) • Focus on maximizing utilization of existing Midpoint of guidance implies 9% revenue headline growth YoY and ~12% growth in assets and growing higher margin, lower base business (excluding M&A) capit
Slide 16: Revenue by Region and Area of Capability
Revenue by Region and Area of Capability Well Asia Pacific Intervention (APAC) & Integrity $62 North & $57 Latin America (NLA) Well Q4 2023 Construction Q4 2023 $145 Middle East Revenue Revenue $145 North Africa (MENA) by Geographic by Area of Well Flow Capability $65 Market $407m Management $407m $
Slide 17: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA Revenue ($m) Adjusted EBITDA ($m)2 Revenue up 63% LWI-related unrecoverablercosts2 Adjusted EBITDA since Q4 2020 up ~3.4x since Q4 2020 $407 $397 $89 $374 $370 $348 $342 $351 $334 $339 $78 $326 $330 $145 $75 $313 $314 $144 $296 $116 $139 $284 $280 $66 $65 $138
Slide 18: Historical Adjusted Cash Flow from Operations and Capex
Historical Adjusted Cash Flow from Operations and Capex Adjusted Cash Flow from Operations ($m)1 Adjusted EBITDA / Capital Expenditures ($m)3 TTM Adjusted EBITDA minus Capex up Adjusted EBITDA Capital Expenditures +$150m since Q4 2020 LWI-related unrecoverable costs3 $89 $78 $99 $75 $65 $66 $73 $55
Slide 19: Historical Revenue by Region and Product Line
Historical Revenue by Region and Product Line By Geographical Market ($m) By Product Line ($m) NLA ESSA MENA APAC Well Construction Well Flow Management Subsea Well Access Well Intervention and Integrity $407 $407 $397 $397 $374 $370 $374 $370 $62 $57 $351 $351 $54 $348 $65 $348 $342 $339 $342 $42 $
Slide 20: Historical Revenue and Contribution by Areas of Capability
Historical Revenue and Contribution by Areas of Capability Revenue ($m) Well Construction ($m) $70 42% 45% 42% 44% 42% 43% 44% 45% 43% 43% 43% 44% 50% 41% 41% 42% 41% 42% $60 38% 40% 37% $407 40% $397 $50 $374 $40 30% $370 $348 $342 $351 $30 $339 20% $330 $334 $326 $20 $313 $314 $145 10% $144 $296 $
Slide 21: Historical Contribution by Product Line
Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) 43% $70 42% 45% 44% 42% 43% 44% 45% 43% 43% 43% 44% 50% $60 40% 41% 45% 42% 39% 38% 36% 38% 39% 38% 38% 38% 37% 41% 42% 41% 42% 41% 36% 36% 34% $60 38% 40% 37% $50 34% 35% 33% 33% 34% 40% 35% $50 $40 30% 25% $40
Slide 22: Historical Segment EBITDA by Region
Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $50 35% $45 35% 30% 30% 30% 31% $45 $40 29% 27% 27% 30% 30% $40 25% 26% 26% 25% $35 23% 23% $35 21% 21% 21% 25% 22% 21% 25% $30 19% 19% 19% 18% $30 20% 18% 18% 18% 20% 16% 15% 15% $25 17% 16% $25 15% 15%
Slide 23: Historical Support Costs
Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) Research, engineering and development Aggregate support TTM support costs up $103 $102 Product Line and central costs costs since Q4 2020 ~5% with run-rate revenue $101 $101 down from 31% to up 18% $6 Ge
Slide 24: Order Backlog
Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) $2,413 $2,295 $2,271 $2,301 + + $2,178 + + $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 1) “Other” includes revenue from backlog and re-estimations. Copyright 2024 Expro. All ri
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q4 2023 Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72
Slide 26: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Three Months Ended TTM ($ in millions) Q1 19 Q2 19 Q3 19 Q4 19 Q1 20 Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334
Slide 27: Non-GAAP Reconciliations (continued)
Non-GAAP Reconciliations (continued) Reconciliation of Adjusted Net Income (Loss) and Adjusted Net Income (Loss) per Diluted Share ($ in millions, except per share amounts) Three Months Ended Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6
Slide 28: Get to Know
GET TO KNOW
Expro Group Holdings — Piper Sandler 24th Annual Energy Conference 2024 on 6ix