Expro Group Holdings N.v. · NYSE:XPRO

Expro — Sidoti Small Cap Conference December 2023

32 slides from Expro's conference presentation, Dec 6, 2023

  1. Slide 1: Sidoti Small Cap Conference

    Sidoti Small Cap Conference December 6-7, 2023 | Virtual Meetings NYSE: XPRO

  2. 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

  3. Slide 3: Delivering technology, expertise and service

    Delivering Unlocking technology, expertise energy answers and service for tomorrow for the wells of today Copyright 2023 Expro. All rights reserved. 3

  4. Slide 4: Get to Know XPRO

    Get to Know XPRO 60 ~8K TTM REVENUE1 $1,457m COUNTRIES EMPLOYEES Asia Pacific ~$2.0bnMarket Capitalization2 16% North & Latin America ~$1.8bn Middle East North Africa 34% BY 15% REGION STRONG CASH ZERO NET-DEBT Enterprise Value3 FLOW OUTLOOK BALANCE SHEET with significant available liquidity Europe

  5. Slide 5: Our Long-Term Value Creation Strategy

    Our Long-Term Value Creation Strategy X P R O Maximize Provide Cost-Effective, Increase Margins Commit to a Multi-Year Upcycle Technology-Enabled and Free Cash Flow Balanced, Transparent Solutions Capital Allocation Framework Maintain Through-Cycle Resiliency Performance is a Core Value People | Par

  6. Slide 6: Recently Sanctioned Projects and Spending Outlook Support Multi-Year Growth Cycle

    Recently Sanctioned Projects and Spending Outlook Support Multi-Year Growth Cycle Number of Projects Sanctioned/Expected to be Sanctioned (#)1 Estimated Value of Projects Sanctioned/Expected to be Sanctioned ($Bn)1 Offshore accounts Deepwater FIDs +$200bn 292 for >60% of sanctioned for 2022-2025, le

  7. Slide 7: Investment Momentum Shifting to International and Offshore Markets

    Investment Momentum Shifting to International and Offshore Markets as Growth for North America Onshore Moderates Total Capital Investments by Year ($Bn)1 50% $600 Increased offshore and CAPEX North America Onshore International Offshore international investment 40% (i.e., long cycle development) 500

  8. Slide 8: Expro Delivers and Derives Value by Providing Cost-Effective, Technology-Enabled Solutions

    Expro Delivers and Derives Value by Providing Cost-Effective, Technology–Enabled Solutions o Digital Solutions for Tubular Running Services iTONG™/CENTRI-FI™ o Advanced Cementing Technologies SeaCure® | QuikCure® | Skyhook® o Integrated Surface/Subsea Capabilities Hook-to-Hanger (PRT Offshore Acquis

  9. Slide 9: Digital Solutions for Tubular Running Services

    Digital Solutions for Tubular Running Services iTONG™ | CENTRI-FI™ Improving well integrity and reducing SAVES OPERATORS personnel on the rig floor. APPROXIMATELY iTONG™ helps protect personnel and $200k saves operators rig time (40% PER MONTH reduction in connection make-up times, 1 ½ hour reductio

  10. Slide 10: Advanced Cementing Technologies

    Advanced Cementing Technologies SKYHOOK® | SeaCure® | QuikCure® Our Wireless Top-Drive Cement Head ENABLED A RAPID with SKYHOOK® eliminates requirement to send personnel above the rig floor through our advanced wireless automation system. 17½” DRILL OUT IN SKYHOOK® increases safety and efficiency th

  11. Slide 11: Integrated Surface/Subsea Capabilities (PRT Offshore)

    Integrated Surface/Subsea Capabilities (PRT Offshore)1 Hook-to-Hanger™ Surface Equipment Simplified subsea technology and integrated surface handling solution that has been adopted by many key customers in U.S. Gulf of Mexico. Growth potential in ESSA and APAC from addition of PRT Offshore surface h

  12. Slide 12: Innovative Well Intervention & Integrity Solutions

    Innovative Well Intervention & Integrity Solutions CoilHose™ | Octopoda™ LOWER NUMBER OF Our CoilHose™ Light Well Circulation PERSONNEL REQUIRED System (LWCS) provides a lower cost, more efficient alternative to traditional coiled tubing systems. 4-6 MULTI-SKILLED CREW CoilHose™ is a compact design

  13. Slide 13: Fast Track, Modular LNG Expansion

    Fast Track, Modular LNG Expansion Eni-Congo Expro is designing and constructing a modular, onshore gas pre-treatment (OPT) facility and will provide long term $300m OF REVENUE EXPECTED operations and maintenance (O&M) OVER THE NEXT 10 YEARS services. Designed to enable incremental gas (LNG) producti

  14. Slide 14: Strong Business Momentum and Improved Operating Leverage Driving Increased Adjusted EBITDA and Free Cash Flow Margin

    Strong Business Momentum and Improved Operating Leverage Driving Increased Adjusted EBITDA and Free Cash Flow Margin Revenue Momentum1 +19% Underlying Adjusted EBITDA Margin Trend2 Adjusted Contribution Margin2 19% as a % of Revenue +37% as a % of Revenue Free Cash Flow Margin Outlook Support costs

  15. Slide 15: Strategic and Financial Flexibility: Capital Allocation Framework

    Strategic and Financial Flexibility Capital Allocation Framework Disciplined Zero Net-DebtBalance Sheet ORGANIC GROWTH Maintenance / Growth capex Capital Allocation & 7-8% ~$350m OF REVENUE Zero Net-Debt Balance Sheet AVAILABLE LIQUIDITY VALUE-ADDED ACQUISITIONS to Leverage and/or compliment existin

  16. Slide 16: Key Takeaways

    Significant International and offshore Customers value increase in number of cost-effective, sanctioned projects, spending supports multi-year technology-enabled value of FIDs, and solutions and customer CAPEX growth cycle global reach Key Takeaways Improving activity Investment and mix and operatin

  17. Slide 17: Appendix

    Investors.Expro.com Downloadable Financials Our ESG report Appendix: Follow us on To learn even more about Expro, check out these additional places to get in touch with us. Connect with us on Subscribe to our channel

  18. Slide 18: Updated Adjusted EBITDA Guidance

    Updated Adjusted EBITDA Guidance 2023 Full-year Adjusted EBITDA Guidance as of October 26, 2023 ($m) 2023A Adjusted EBITDA ($m) $325 $42 $72 $50 Q1 2023 Q2 2023 Q3 2023 $275 LWI $245 $164 US Land $235 YTD ($m)1 NLA Well Flow 75- $85 235- $245 Management Other, net NLA Well Construction PRT $ $ Q4 20

  19. Slide 19: Our Financial Targets – Historical Context

    Our Financial Targets – Historical Context As Adjusted Most Recent Peak TTM TTM 2024+ (2014-2015) Q3 2023 Q3 20231 Targets Contribution 56% 35% 37% +40% Support Costs 27% 20% 20% ≤20% Adjusted EBITDA 29% 16% 19% +20% Cash Conversion (Adjusted CFFO as a % of Adjusted EBITDA) 97% 96% 97% +/-75% Adjust

  20. Slide 20: Historical Revenue and Adjusted EBITDA

    Historical Revenue and Adjusted EBITDA Revenue and Underlying Contribution Margin ($m)1 Adjusted EBITDA ($m)2 Revenue Revenue up 48% LWI-related unrecoverablercosts2 Adjusted EBITDA $450 Contribution Margin since Q4 2020 100% up ~2.0x Adjusted Contribution Margin (excludes LWI and Eni-Congo) since Q

  21. Slide 21: 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 Adjusted EBITDA Capital Expenditures TTM Adjusted EBITDA minus Capex up LWI-related ~$145m since Q4 2020 unrecoverable costs3 $99 $78 $75 $65 $66 $73 $55 $66

  22. Slide 22: 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 $397 $397 $374 $370 $374 $370 $65 $54 $348 $342 $351 $351 $339 $348 $342 $42 $56 $334 $334 $339

  23. Slide 23: 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% 50% 41% 41% 42% 41% 42% $60 38% 40% 37% 40% $50 $397 $40 30% $374 $370 $30 20% $348$342 $351 $334 $339 $20 $326 $330 $313 $314 $144 $10 10% $116 $59 $66 $63

  24. Slide 24: Historical Contribution by Product Line

    Historical Contribution by Product Line Well Construction ($m) Well Flow Management ($m) $70 42% 45% 50% 43% 40% 41% 44% 42% 43% 44% 45% 43% 43% 43% $60 39% 38% 36% 38% 39% 38% 45% 41% 42% 41% 42% 41% 42% 36% 36% 38% 38% 37% 34% $60 38% 40% 37% $50 34% 35% 33% 33% 40% 35% $50 $40 30% 25% $40 $30 $30

  25. Slide 25: Historical Segment EBITDA by Region

    Historical Segment EBITDA by Region North & Latin America ($m) Europe & Sub-Saharan Africa ($m) $45 35% $45 35% 30% 30% 29% $40 27% $40 27% 30% 26% 26% 30% 25% $35 25% $35 23% 23% 21% 21% 21% 25% 22% 21% 25% $30 $30 19% 19% 19% 18% 18% 18% 18% $25 16% 15% 15% 15% 20% $25 17% 16% 20% 15% 15% 15% 14%

  26. Slide 26: Historical Support Costs

    Historical Support Costs Historical Support Costs ($m) Trailing Twelve Months Support Costs ($m) TTM support costs up $103 $102 Research, engineering and development ~3%, with run-rate $101 $101 Aggregate support $322 Product Line and central costs revenue up ~11% y/y $6 $6 costs since Q4 2020 $6 $8

  27. Slide 27: Order Backlog

    Order Backlog Q/Q Change in Order Backlog ($m) Order Backlog at Quarter End ($m) $2,413 $2,295 $2,271 + $2,178 + + $1,927 $1,878 $1,744 1 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 1) “Other” includes revenue from backlog and re-estimations. Copyright 2023 Expro. All rights reserved. A-

  28. Slide 28: Non-GAAP Reconciliations

    Non-GAAP Reconciliations ($ in millions) Three Months Ended TTM Q3 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 Adjusted EBITDA 1 $ 33 $ 45 $ 45 $ 51 $ 35 $ 24 $ 24 $ 26 $ 24 $ 39 $ 45 $ 51 $ 37 $ 51 $ 48 $ 70 $ 42 $ 72 $ 50 $

  29. Slide 29: 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 Total revenue $ 326 $ 348 $ 342 $ 374 $ 330 $ 251 $ 233 $ 250 $ 251 $ 284 $ 313 $ 296 $ 280 $ 314 $ 334 $ 351

  30. Slide 30: 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 Net Income (loss) $ (91) $ (11) $ (4) $ (18) $ 13 $ (6) $ 9

  31. Slide 31: Notes

    Notes Copyright 2023 Expro. All rights reserved.

  32. Slide 32: Get to Know

    GET TO KNOW

Expro Group Holdings — Sidoti Small Cap Conference December 2023 on 6ix